Predictions of strong Y-o-Y growth for Japan’s Nissan Motor company fell horribly short with reported revenue for the April to June quarter (Q2), coming in at a low 995 million Yen compared to 128 Billion Yen in the same quarter in 2023. The news sent Nissan stock plunging by its steepest single-day share price decline since February, and dropped by up to -11% at one point but did recover somewhat to end -7% lower that the open.
Nissans Share price hit a 52-week low and the stock price has declined by -12,5% year-to-date.
Despite senior management promising a turn-around and new models being launched, the market will have to show faith in the Auto manufacturer who has cut its financial outlook for the current year by -17% to 500 Billion Yen, alongside a cut in projected sales now down over 50 000 vehicles compared to earlier projections. Q2 was the worst quarter results the Auto Manufacturer has had in years.
The first-quarter sales were even year-on-year at 787,000 vehicles, however the profit decreased due to discounts and increases in marketing spend as Nissan attempted to try ride out the competition storm it was facing and grow sales. This strategy clearly did not work effectively with numbers in their largest markets China and the USA, that accounts for the bulk of Nissan’s sales, both declining.
In response, Chief Executive Makoto Uchida indicated that they intend to increase sales, in the second half of their financial year via new and up-dated model offerings such as the Armada and Murano, particularly in The USA.
