Nissan (7201) Reports Q3 Results: Is Weak NA Profitability a Longer-term Issue?
Unlike its peers, Nissan did not raise its guidance numbers, despite the weaker Yen: Nissan said that the non-¥/USD rates (CAD, MXN, RUB) remained weaker than expected and that the competitive environment was challenging (implying that incentives are likely to remain high). We also believe that the deterioration in financial services has been worse than anticipated by Nissan and has not been fully accounted for. Since the results and forecasts are slightly below consensus (FY16 OP consensus ¥725bil vs. Nissan’s guidance of ¥710bil), markets could be disappointed by Nissan’s performance.
Summary Points
- New models are low volume models
- The launch of the Rogue Sport is not a risk-free undertaking
- Nissan division passenger car sales still account for 50%+ of total sales
- Prospects for financial services in the US are deteriorating
- The sales situation in Mexico in particular is deteriorating
- Cost reduction efforts are ongoing; cost synergies with MMC
- Honda looks more favorable with its line up and FY17e EV/OP 13.5x vs Nissan’s 15.8x
Nissan Motor, along with its subsidiaries and associated companies, is engaged in the manufacture and sale of vehicles, marine products and related parts; and the provision of finance services throughout world. Co.'s principal businesses are automobile and sales financing. Automobile segment manufactures electric vehicles, sedans, sport coupes, compact cars, mini vans, SUVs, pick-up trucks, and station wagons. Co.'s principal brand names include "Leaf," "Infiniti," "Murano," "Altima," "Maxima," "Sentra," "Quest," "Cedric," "Days Roox," "e-NV200," "Note e-Power," "Caravan," "Wingroad," "GT-R," "Farilady Z, among others. Sales Financing segment provides sales financing services..
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.