Nissan (7201) FY17 Q1 Earnings Comment – Profit Decline in All Regions
Nissan reported FY17 Q1 net sales of ¥2,760.4bil (+4% YoY), OP of ¥153.3bil (-12.8% YoY) and NP of ¥134.9bil (-1.1% YoY). The results were below consensus (OP of ¥171bil) and the Q1 YoY OP decline was larger than the decline expected for FY17 by Nissan (-7.7% YoY) and by consensus and PSA (flat). Nissan said it anticipates better earnings in the coming quarters and, therefore, has not altered its full year forecasts.
Key Points:
- Sharp profit decline in North America on higher incentives
- OP down in all regions except for Japan – Europe and 'other regions' are back in the red
- Nissan remains upbeat for the remainder of the year, expecting an improved model mix, gains from new model launches and production cost savings
- In Q1, the base of comparison from Japan (sales and profits) was favourable, but this is set to change from Q2 on
- We continue to be concerned about North America, as further market weakness implies that incentives should continue to rise
- The market environment for financial services is deteriorating and could negatively impact Nissan's North America performance
Founded in 2009, Pelham Smithers Associates (PSA) provides market intelligence on Asian technology, focusing in particular on Japan. The industries covered by our team of specialists are: consumer electronics, telecomms, pharmaceuticals, internet, electronic parts and materials, automotive technology, retail and capital goods.
PSA produces both company and sector reports. The focus of PSA’s research is to identify winners and losers as new technologies impact the top and bottom lines of corporations. Critical to our research is the clear explanation of how these new technologies work and how they impact companies and industries.
The founding partners have worked closely together for twenty years and the team has more than doubled in size since 2012.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.