(Boursier.com) — Renault fell by 3.8% to 47 euros this weekend, penalized by the warning of Nissan Motor. The Japanese partner of the diamond manufacturer has revised its annual guidance downwards due in particular to vehicle sales that are lower than expected.
The Japanese car manufacturer now forecasts 2024-2025 operating profit of 530 billion yen (E3.22 billion), or 15% less than previously anticipated. Net profit is estimated at 370 billion yen instead of 390 billion yen while sales are expected to reach 3.44 million units for the year, compared to 3.55 million units previously targeted, partly due to poor performance in China.
The impact of increased competition in the U.S. market, the New Year’s Day earthquake on Japan’s Noto Peninsula and shipping disruptions in the Red Sea hurt sales, Makoto Uchida said. CEO of Nissan, during a press conference.
Last month, Nissan announced plans to sell 1 million more vehicles a year by 2027 by introducing dozens of new models, including more profitable electric vehicles. It also announced a partnership with Honda Motor to develop EV technology. But today’s announcement could cast doubt on Nissan’s ability to achieve the objectives set.
Commenting on the weakening yen, which is trading near a 34-year low, Stephen Ma, Nissan’s chief financial officer, said the foreign exchange impact is “positive” and the company will provide detailed analysis when announcing its results next month. For now, the company has no plans to change its dividend policy, he said.
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