Several companies had previously suggested that their profits could deteriorate because they could not pass on rising consumer prices to their customers.
Nissan maintains chip shortages and predicts flat revenue. Japan’s third-largest car repair company said on Thursday that operating profits would increase by one percent to 250 billion yen (1.8 billion euros) in the current financial year by the end of March. That is far less than the analysts interviewed believe is possible.
“Semiconductor scarcity is a relatively new phenomenon, as is the case with the epidemic, and we must live with it because it will not end tomorrow,” said Nissan Chief Operating Officer Ashwani Gupta. At the same time, sales should increase by 18.7 percent to ten trillion yen.
Several companies had previously suggested that their profits could deteriorate because they could not pass on rising consumer prices to their customers. Because of the Ukraine war and the ongoing corona blockade in China, they are preparing for further disruption in the supply chain. For example, a rival Nissan Toyota hinted Wednesday that higher raw material costs could reduce profits by one-fifth.
Thanks to weak and savings yen, Nissan generated operating gains of 56 billion yen in the fourth quarter of the previous financial year, from a loss of 19 billion yen last year. The results were better than analysts expected.