Nissan’s profits plunge on COVID lockdown, chips crunch

Jul 27, 2022, 2:03 PM | Updated: Jul 28, 2022, 2:04 am
The Nissan Motor Co. logo is displayed at the company's global headquarters in Yokohama near Tokyo,...

The Nissan Motor Co. logo is displayed at the company's global headquarters in Yokohama near Tokyo, on Aug. 18, 2021. Japanese automaker Nissan's profit plunged in the last quarter to half of what it was a year ago as the COVID-19 lockdown in China and a global semiconductor shortage slammed production. Nissan Motor Co. reported Thursday, July 28, 2022, that its April-June net profit totaled 47.1 billion yen ($349 million), down from 114.5 billion yen in the same period of 2021. (AP Photo/Koji Sasahara)

(AP Photo/Koji Sasahara)

TOKYO (AP) — Japanese automaker Nissan’s profit plunged in the last quarter to less than half of what it was a year earlier as the COVID-19 lockdown in China and a global semiconductor shortage slammed production.

Nissan Motor Co. reported Thursday that its April-June net profit totaled 47.1 billion yen ($349 million), down from 114.5 billion yen in the same period of 2021. That change marks a 59% drop. Quarterly sales rose 6% 2.14 trillion yen ($15.9 billion).

Soaring raw material costs also hurt profitability, according to the manufacturer based in the port city of Yokohama.

Nissan posted a profit in the last fiscal year ended in March for the first time in three years.

The brand image of Nissan, allied with Renault SA of France, has suffered after its star executive Carlos Ghosn was arrested in Japan on various financial misconduct charges in 2018.

Ghosn, who led the alliance for two decades, says he is innocent, pointing to a coup within the automaker’s ranks as behind the allegations. He jumped bail in December 2019, and is now in Lebanon.

Nissan reiterated in its earnings report Thursday that Ghosn used company money for “personal benefit,” including purchases of residences, and payments to family members, gifts and donations it said were improper.

The shortage of semiconductors because of COVID-19 restrictions in various nations has hurt not only Nissan but the entire auto industry.

Chief Operating Officer Ashwani Gupta said Nissan will invest to “build resilience,” restructuring supply chains and inventory levels so that demand can be better met. But Gupta warned the chips-shortage crisis wasn’t going to be fixed for some time.

He said soaring raw material costs must also be addressed, noting Nissan was “moving forward with cautious optimism.” The cheap yen will serve as a “tailwind,” Gupta said. A declining yen boosts the value of Japanese manufacturers’ overseas earnings.

Nissan, which makes the Leaf electric cars, Rogue sport utility vehicles and Infiniti luxury models, expects its production volumes to recover in the months ahead.

It’s forecasting a net profit for the fiscal year ending in March next year of 150 billion yen ($1.1 billion), down 30% on year.

“In the first quarter, the business environment remained more challenging than expected. We believe our progress in this environment is proof that Nissan’s business foundation has been steadily strengthened,” said Chief Executive Makoto Uchida.

Japan’s top automaker, Toyota Motor Corp., reports earnings next week.

___

Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

FILE - The logo of the International Monetary Fund is visible on their building, April 5, 2021, in ...
Associated Press

IMF fees on war-torn countries closer to elimination

WASHINGTON (AP) — The International Monetary Fund is facing pressure to reevaluate how it imposes fees on loans it disperses to needy countries like war-torn Ukraine — which is one of the fund’s biggest borrowers. The move comes as more countries will need to turn to the IMF, as food prices and inflation internationally continues […]
22 hours ago
FILE - Republican candidate for U.S. Senate Leora Levy talks to delegates at the State Republican C...
Associated Press

Far-right wins in blue states threaten GOP hopes in November

HARTFORD, Conn. (AP) — Republicans have found success in Democratic strongholds like Maryland and Massachusetts when they have fielded moderate candidates who could appeal to voters in both parties. With Democrats facing headwinds this year, Republicans had hoped that strategy could pay off yet again. But Republican voters have nominated loyalists of former President Donald […]
22 hours ago
Millaray Huichalaf, a Mapuche machi, or healer and spiritual guide, poses for a portrait in the Pil...
Associated Press

On Chile rivers, Native spirituality and development clash

MELIPEUCO, Chile (AP) — Mist suddenly arose from the Truful Truful River as it flowed below the snow-covered Llaima volcano, and Victor Curin smiled at the sun-dappled water spray. A leader in one of the Indigenous communities by the river’s shores in the Chilean Andes, Curin took it as a sign that the waterfall’s ngen […]
22 hours ago
Millaray Huichalaf, a Mapuche machi, or healer and spiritual guide, poses for a portrait in the Pil...
Associated Press

On Chile rivers, Native spirituality and development clash

MELIPEUCO, Chile (AP) — Mist suddenly arose from the Truful Truful River as it flowed below the snow-covered Llaima volcano, and Victor Curin smiled at the sun-dappled water spray. A leader in one of the Indigenous communities by the river’s shores in the Chilean Andes, Curin took it as a sign that the waterfall’s ngen […]
22 hours ago
Mapuche people take a ceremonial dip in Lake Rupanko during a purification ritual marking We Tripan...
Associated Press

Mapuche solstice ceremonies highlight sacred rivers

ALONG THE PILMAIQUEN RIVER, Chile (AP) — A ceremonial dip in the frigid waters of the fast-flowing Pilmaiquen River in southern Chile was the culmination of the multiday celebration of We Tripantü, one of the most sacred holidays for the Mapuche, the country’s largest Indigenous group. Coinciding with the winter solstice in the Southern Hemisphere, […]
22 hours ago
Associated Press

Today in History: August 20, deadly post office rampage

Today in History Today is Saturday, Aug. 20, the 232nd day of 2022. There are 133 days left in the year. Today’s Highlight in History: On Aug. 20, 1986, postal employee Patrick Henry Sherrill went on a deadly rampage at a post office in Edmond, Oklahoma, shooting 14 fellow workers to death before killing himself. […]
22 hours ago

Sponsored Articles

Work at Zum Services...

Seattle Public Schools announces three-year contract with Zum

Seattle Public Schools just announced a three-year contract with a brand-new company to the Pacific Northwest to assist with their student transportation: Zum.
Swedish Cyberknife 900x506...

June is Men’s Health Month: Here’s Why It’s Important To Speak About Your Health

According to the Centers for Disease Control and Prevention, men in the United States, on average, die five years earlier than women.
...

Anacortes – A Must Visit Summertime Destination

While Anacortes is certainly on the way to the San Juan Islands (SJI), it is not just a destination to get to the ferry… Anacortes is a destination in and of itself!
...

Ready for your 2022 Alaskan Adventure with Celebrity Cruises?

Celebrity Cruises SPONSORED — A round-trip Alaska cruise from Seattle is an amazing treat for you and a loved one. Not only are you able to see and explore some of the most incredible and visually appealing natural sights on the planet, but you’re also able to relax and re-energize while aboard a luxury cruise […]
...

Compassion International Is Determined to ‘Fill’ a Unique Type of Football ‘Stadium’

Compassion International SPONSORED — During this fall’s football season—and as the pandemic continues to impact the entire globe—one organization has been urging caring individuals to help it “fill” a unique type of “stadium” in order to make a lasting difference in the lives of many. Compassion International’s distinctive Fill the Stadium (FtS, fillthestadium.com) initiative provides […]
...

What are the Strongest, Greenest, Best Windows?

Lake Washington Windows & Doors SPONSORED — Fiberglass windows are an excellent choice for window replacement due to their fundamental strength and durability. There is no other type of window that lasts as long as fiberglass; so why go with anything else? Fiberglass windows are 8x stronger than vinyl, lower maintenance than wood, more thermally […]
Nissan’s profits plunge on COVID lockdown, chips crunch