Nissan's profits bombed, operating profits dropped to zero

Nissan Motor's operating profit for the April-June 2024 quarter plunged 99% to just 995 million yen (approximately $6.5 million), compared with 128.6 billion yen in the same period last year. The performance was far worse than expected, and the stock price once plummeted by about 11%. This marks Nissan's worst quarterly performance in over three years. The company also lowered its operating profit forecast for this fiscal year by 17%, from 600 billion yen to 500 billion yen.

Global sales remained flat at 787,000 units compared to the same period last year. However, in the U.S., sales declined due to an aging product lineup and the market's shift toward hybrid vehicles. Increased sales incentives and marketing expenses to cope with competition and optimize inventory severely impacted profits.