Nissan Motor Company (TYO: 7201) reported an increase in revenue and net income but its operating income was harmed by slowing sales growth, negative pricing trends, inventory adjustments in the US and issues in the final inspection procedures of vehicles for Japan.

Nissan Financial Results 3Q17

The company’s net revenue grew to JP¥8.53 trillion (US$77.86 billion) during the first nine months of FY17 from JP¥8.26 trillion (US$75.78 billion) in the same period of FY16. In the first three quarters of FY17, the company’s net income grew 39.57 percent to JP¥578.1 billion (US$5.3 billion) from JP¥414.2 billion (US$3.79 billion) during the same period of FY16. In this same period, the company’s operating profit fell to JP¥364.2 billion (US$3.34 billion) from JP¥503.2 billion (US$4.61 billion) compared to the first nine months of FY16.

The number of vehicles sold globally grew to 68.52 million units during the first nine months of FY17 compared to 61.16 million in the first three quarters of FY16. Nissan’s sales in North America fell 1.8 percent and 1.9 percent in the US alone while car sales in Japan, China, Europe and other regions experienced growth.

In Japan, Nissan’s market share grew 0.5 points during the first nine months of FY17 to a total share of 10.3 percent. Similarly, the company’s retail volume in Japan amounted to 378,000 vehicles between 1Q17 and 3Q17, which was a 9.7 percent increase compared to the same period of FY16.

Nissan Motor Co experienced mixed sales results in the North American market. The company experienced growth in its market share and retail volume in Canada (0.3 percent market share growth and 113,000 sold vehicles) and the US (0.2 percent market share growth and 1.17 million sold vehicles). But the company’s total industry volume (TIV) in the US and Mexico fell 1.9 percent and 8.3 percent respectively in the first nine months of FY17 compared to the same period of FY16. In Mexico, the company’s sales contracted. Its retail volume fell to 270,000 sold vehicles, which constituted a 13.7 percent drop compared to 1Q-3Q16 volumes.

The company has adjusted its FY17 expectations accordingly. Nissan Motor Company now expects an annual revenue of JP¥11.8 trillion (US$108.2 billion) and kept its annual net income forecast of JP¥705 billion (US$6.46 billion). The company also expects to increase its total retail volume to 5.8 million vehicles sold during FY17, of which 1.67 million vehicles are expected to be sold globally during the last quarter of the fiscal year.

The data used in this article was sourced from Nissan Motor Corporation. If you want to learn more about Nissan’s and other brands’s performance in Mexico, check out our feature analysis in Mexico Automotive Review 2017

Don’t forget to follow us on twitter at @mexautomotive and @mexautomotriz for the latest industry news.

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