From Investing.com: 2024-07-26 12:17:54

Nissan faced a challenging first quarter in 2024, with a slight increase in net revenue to ¥3 trillion but a significant drop in profit to ¥1 billion. Sales in China and Europe grew, but Japan and North America saw declines. The company revised its full-year forecast, anticipating lower unit sales and operating profit.

Despite flat global retail sales and mixed regional performance, Nissan’s net revenue in Q1 2024 increased to around ¥3 trillion. Operating profit was ¥1 billion, with net income at ¥28.6 billion. Sales dropped in Japan and North America, but rose in China and Europe. The company expects to sell 3.65 million units this year with an operating profit of ¥500 billion.

Nissan’s U.S. operations struggled with profitability due to inventory and demand challenges, leading to a decline in profit. To address this, the company plans to optimize its inventory with new model introductions. CEO Makoto Uchida discussed the pressures on profitability in the U.S. and emphasized the importance of customer loans to protect resale values.

InvestingPro insights reveal that Nissan’s P/E ratio is low at 5.27, suggesting undervaluation. The P/B ratio is also low at 0.3, indicating potential for attracting value investors. With a perfect Piotroski Score of 9, Nissan’s financial position appears strong. The company’s share buyback initiative and strategic measures underscore confidence in future performance.

In a Q&A session on Nissan’s Q1 2024 results, CEO Makoto Uchida addressed challenges in the U.S. market and outlined strategies for recovery through inventory optimization and new model launches. CFO Stephen Ma highlighted the impact of forex rates and the company’s focus on meeting revised targets. A feasibility study with Honda is progressing well, with more details to follow soon.



Read more at Investing.com: Nissan navigates tough Q1 with modest revenue rise, plans recovery By Investing.com