Economy

Nissan Q2 operating profit drops 21.6pc, misses estimates

Nissan Q2 operating profit drops 21.6pc, misses estimates”

Mitsubishi Motors Corp said on Tuesday it swung to an operating profit for the second quarter, beating expectations as it rebounded from a mileage-cheating scandal a year earlier helped by cost cuts and favourable exchange rates.

Nissan lowered its forecast for operating profit to 645.0 billion yen for the year to March 2018, from a previous forecast for 685.0 billion yen, to reflect the impact of improper final inspection procedures it had been following for vehicles produced in Japan for the domestic market.

Earnings hit by rising sales expenses in the U.S.

Nissan Shatai Co slashed its annual net profit forecast by 44% to 5.4 billion yen, to account for a special loss of 4.5 billion yen to pay for re-inspections for the recalled cars.

The plants, which just reopened, had been conducting the inspections incorrectly for decades, necessitating the recall of 1.2 million vehicles.

Nissan halted shipments and production at all six of its assembly plants here in October, after it was revealed that uncertified inspections were still occurring even after the scandal first came to light in September. The techs were used because some inspection steps had been transferred to other inspection lines, in violation of ministry rules.

Results were hurt by a multi-million USA settlement tied to the recall of vehicles with faulty Takata air bag inflators. First, the company was hampered by a multi-million dollar US settlement tied to the recall of vehicles with faulty Takata air bag inflators.

Nissan's ongoing scandal, along with those related to Kobe Steel and another Japanese automaker, Subaru Corp., have severely diminished domestic and worldwide confidence in Japan's once stellar manufacturing industry.

Nissan's vehicle sales in North America fell 3.3% in July-September to 502,000 units.

The automaker's sales jumped 25.6% at home over the quarter. In China, Nissan's second-largest market and the world's biggest auto market, its sales rose 8%.



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