Post by : Bianca
Haleem
Nissan Motor has moved back into the black for the second quarter, reporting an operating profit of 51.5 billion yen ($342 million) for July–September. That represents a 61% rise from 31.9 billion yen a year earlier and beats analysts’ consensus, which had pointed to an average loss of 70.9 billion yen.
The recovery follows an aggressive cost-reduction drive and firmer demand in North America. After posting an operating loss in the first quarter, this is Nissan’s strongest quarterly showing since the 90.3 billion yen profit recorded in Q4 of fiscal 2023.
Streamlined Operations and Strategic Moves
As part of its turnaround plan, Nissan is accelerating global restructuring, cutting its factory footprint from 17 plants to 10 and reducing staff by about 15%. The company has also scaled back production of the Rogue SUV in Japan because of a chip shortage linked to Dutch supplier Nexperia and will suspend output at the COMPAS plant in Mexico at the end of November.
Nissan additionally completed a 97 billion yen sale-and-leaseback arrangement for its Yokohama global headquarters to bolster liquidity.
Outlook Remains Challenging
Despite the quarter’s improvement, Nissan is maintaining a forecast for a 275 billion yen operating loss for the year through March 2026, citing continued U.S. tariff effects and supply-chain uncertainties.
The latest results underline that a focus on cost discipline, leaner production and product-driven growth may help stabilize performance in the latter part of the fiscal year, even as broader economic and trade risks persist.
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