By Satoshi Sugiyama
TOKYO (Reuters) – Nissan Motor Co sees flat operating profit this fiscal year, well below analyst expectations, as Japan’s third-largest automaker continues to grapple with semiconductor shortages, rising costs and restrictions in China. for the COVID.
Nissan joins a growing list of global companies warning of worsening profitability as they are unable to fully pass on rising input costs to consumers and brace for more supply chain delays from the conflict in Ukraine and the prolonged lockdowns in China.
Its biggest rival, Toyota Motor, said on Wednesday that «unprecedented» increases in raw material costs could cut full-year profit by a fifth.
Nissan expects sales to rise 18.7% in the current fiscal year to 10 trillion yen ($77.6 billion). However, operating profit would grow just 1% to 250 billion yen, below the median estimate of 318.5 billion yen from 19 analysts surveyed by Refinitiv.
«The semiconductor shortage is a new normal, just like the pandemic, and we have to live with it because this is not going to end tomorrow morning,» Nissan COO Ashwani Gupta said during a phone call with reporters to talk about your results.
Nissan said it expects raw material and logistics costs to rise about 1.5 times to 212 billion yen ($1.65 billion) in the fiscal year that began in April, with more than half due to steel and carbon. aluminum. It also projected an additional 45 billion yen hike in logistics costs for the current year.
Shares of the company rose 1% in Tokyo before the release of its results at the close of the market.
(Edited in Spanish by Marion Giraldo)