TOKYO (Reuters) – Nissan Motor raised its full-year operating profit forecast on Tuesday as the Japanese automaker benefited from cost cuts and a weak yen.
The Renault partner now forecasts an operating profit of 210 billion yen (1.59 billion euros) for the financial year which will end at the end of March, against a previous forecast of 180 billion.
The new target is above the average forecast of 194 billion set by 20 analysts according to Refinitiv data.
Like many of its competitors, Nissan has been forced to cut production, despite a rebound in demand in China and the United States, due to the global shortage of semiconductors.
These cuts in production have, however, enabled the car manufacturer to reduce its costs and improve the profitability of its vehicles, the group no longer being forced to grant promotions to boost demand.
Nissan, Japan’s third-largest automaker, maintained its global sales target of 3.8 million vehicles.
For the third quarter, which ended at the end of December, operating profit almost doubled year on year to 52.2 billion yen, beyond the average analyst forecast of 35.8 billion according to Refinitiv.
Separately, Renault said on Tuesday that Nissan made a positive contribution of 124 million euros to its fourth-quarter net profit.
(Tim Kelly report; Blandine Hénault for the French version, edited by Bertrand Boucey)
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