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Nissan Returns to Quarterly Profit as Toyota Raises Forecast and Announces ¥1 Trillion Buyback

Cost cuts, a weak yen and strong hybrid sales are helping profits recover even though quake damage and Iran-related shipping and material shocks keep production and margins under pressure.

Overview

  • Nissan reported a small net profit for the April–June quarter on Monday and posted about ¥78 billion in operating profit after cost cuts from its Re:Nissan restructuring.
  • The carmaker trimmed its annual global sales target to 3.15 million units but left its full-year revenue and profit guidance unchanged as China and the Middle East remain key headwinds.
  • Toyota, which paused output at several plants after the Kumamoto earthquake, raised its fiscal operating-profit outlook to ¥3.4 trillion and unveiled a ¥1 trillion share buyback, citing benefits from a weak yen and resilient hybrid demand.
  • Both firms are coping with supply shocks from the Iran-related conflict that have pushed up aluminium and naphtha costs and disrupted shipping routes, while fierce competition from Chinese EV makers is depressing sales in China.
  • The near-term risks include lingering supplier damage and disrupted logistics that could extend production halts, plus second-order effects such as faster onshoring, more restructuring and continued pressure on consumer prices and dealer inventories.