Nissan says 2022 will be more serious than 2021

Nissan Motors in its forecast for 2022 said it expects the market situation to be tougher than in fiscal 2021, due to persistent shortages of semiconductors, higher raw material prices and logistics costs, the crisis in Ukraine and the impact of blockades on parts. supplies to China.

However, the company said in a press release that thanks to a stronger business base and further transformation, Nissan seeks to maintain operating profits at the same level as in fiscal 2021, ensuring product turnover, improving sales quality and further strengthening financial performance. discipline and control of fixed costs.

In fiscal year 2021, the company said the situation remained extremely difficult, influenced by external factors such as the continued spread of Covid, the shortage of semiconductors and high commodity prices. Despite these challenges, Nissan continues to make steady progress with its Nissan NEXT transformation plan, strengthening the core of its business, improving sales quality and bringing new models to market.

In fiscal year 2021, profitability has improved significantly on an annualized basis due to financial discipline and strict control of fixed costs, the company said. Improving the quality of sales worldwide with favorable conditions in the US market has led to a significant increase in net income per unit of major new models, which contributed to increased profitability during this period.

For the full fiscal year, consolidated net income was 8.42 trillion yen, resulting in an operating profit of 247.3 billion yen with an operating margin of 2.9 percent and a net profit¹ 215.5 billion The fiscal year was also Nissan’s first return to profitability in three fiscal years and achieved an operating margin of 2 percent, which was an important milestone within the Nissan NEXT. Free cash flow for the automotive business was negative 294.7 billion yen, net cash in automotive production was 728 billion yen.