TOKYO (Reuters) -Nissan Motor Co on Wednesday reported a 45% rise in second-quarter profit, helped by cost-cutting and higher-margin sales, and it sharply hiked its full-year outlook
The Japanese automaker reported 91.7 billion yen ($629.51 million) in operating profit for the three months to end-September, versus an average 88.23 billion yen profit estimate of 11 analysts, according to Refinitiv data.
A year earlier it earned 63.4 billion yen.
The company raised its full-year operating profit forecast to 360 billion yen from 250 billion yen. That compares with a 335.13 billion yen average forecast by 21 analysts. The financial announcement took place less than a week remaining until a Nov. 15 target the Japanese and French automakers had set to reach a deal on revamping their alliance, although people familiar with the talks have said no announcement is now expected on that date. Nissan said on Tuesday the discussions, including on the alliance’s new governance structure, “are going in the right direction.” Renault on Tuesday announced an overhaul of its businesses, agreeing to establish equally held joint venture with China’s Geely for gasoline engines and hybrid technology and spinning off its electric vehicles unit through a stock market listing next year. The French automaker has been in talks to convince Nissan to invest in its new electric unit. Renault has a 43% stake in Nissan while the Japanese automaker has a 15% non-voting stake in Renault. People with knowledge of the talks have said the two sides have been discussing a reduction in Renault’s stake in Nissan, potentially to 15%. Nissan is expected to take a stake in the EV venture, codenamed “Ampere”, alongside other investors, though Renault will keep a majority stake. Still, talks with Nissan have been dragging on, amid Japanese reservations about sharing technology with others, including a Chinese rival like Geely, sources have told Reuters. Like other Japanese automakers, Nissan has been forced to make adjustment to its production plan due to persistent semiconductor supply disruptions. It temporarily stopped taking new order of the Sakura, fully electric micro “kei” car, and X-Trail crossover sports utility vehicle in Japan last month because of prolonged delivery periods of a year or more.
($1 = 145.6700 yen)
(Reporting by Satoshi Sugiyama; Editing by David Dolan)
