Nissan raises full-year operating profit outlook by 20%

Nissan Motor raised its full-year operating profit outlook by 20% as sales rebounded from a pandemic slump and tight supplies of vehicles allowed it to lower incentive payments and boost margins, Reuters reported.

Nissan like other big global carmakers has been forced to cut output because of a shortage of semiconductors and other components. But demand for cars in key markets such as China and the US is growing.

Nissan raised its full-year profit forecast to 180 billion yen ($1.59 billion) from 150 billion yen. That prediction is higher than a mean 161 billion yen profit based on forecasts from 23 analysts, Refinitiv data shows.

Last week, Honda Motor cut its full-year operating profit outlook 15% to 660 billion because of the chip shortage, while Toyota Motor cut its annual vehicle sales target and warned that the lack of semiconductors still posed a risk to its production plans.

Nissan said it posted a second quarter operating profit of 62.8 billion yen for the three months to Sept. 30 compared with a loss of 4.8 billion yen a year earlier. That result was better than an average 4.4 billion yen loss forecast based on estimates from 10 analysts, Refinitiv data shows.