Nissan posts 98% rise in Q1 operating profit, exceeds market expectations
Also Read: Nissan, Renault may announce new alliance deal in days: Report Japan’s Nissan Motor managed to double its first-quarter profit on Wednesday. The profit was fuelled by higher production and sales in North America and Japan. The weaker yen also helped the company lift its full-year outlook.
The company has raised its full-yeara forecast by nearly 6% to 550 billion yen due to cost discipline and a favourable foreign exchange impact. Also read: Carlos Ghosn files $1 billion suit in Lebanon against Nissan According to the analysis performed by Refinitiv, the average value of the amount of forecast presented by the group of 18 analysts was 517.42 billion yen. Nissan shares closed 1.2 per cent down at 656.8 yen earlier in the day, before the announcement of the result.
In a bid to compete with its rivals like Tesla, Nissan will invest around $663 million in Renault SA’s electric-vehicle venture Ampere. Moreover, the pair has formalised a deal for Renault to reduce its ownership of Nissan to 15% by placing the rest of its current 43% shareholding in French trust. Also Read: Nissan registers wholesales of 5,832 units in June 2023 “These agreements provide us with a solid base to reactivate business operations worldwide in key markets, with the potential to generate hundreds of millions in value," Renault Chief Executive Officer Luca de Meo said in the statement.
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