Yokohama

Nissan Motor Co. said Tuesday its consolidated operating profit tumbled 85.0 percent in its fiscal first half ended in September from a year before due to sliding vehicle sales worldwide.

The Japanese automaker reported an operating profit of 31,608 million yen for the six-month period, compared with a profit of 210,335 million yen a year before.

Nissan is reviewing the policy of pursuing scale that had been led by former Chairman Carlos Ghosn, who has been charged with financial misconduct in Japan.

The company’s earnings performance remained disappointing after its operating profit dived 98.5 percent to 1,609 million yen in the April-June quarter.

Vehicle sales dropped in key markets such as North America, China and Europe. Higher raw materials costs weighed on the company. The yen’s rise pushed down its operating profit by 27.5 billion yen.

Net profit fell 73.5 percent to 65,365 million yen in the first half. Both operating and net profits each marked a fourth consecutive first-half decline.

First-half operating and net profits both fell below 100 billion yen for the first time in 10 years. Sales dropped 9.6 percent to 5,003,075 million yen.

At a press conference in Yokohama, Kanagawa Prefecture, south of Tokyo, Stephen Ma, Nissan corporate vice president who is set to assume the post of chief financial officer on Dec. 1, said the company has taken a step forward toward a recovery in North American sales.

But Ma added that Nissan is expected to remain under pressure from the yen's continued strength as well as weak vehicle demand amid economic uncertainties. Nissan lowered its sales and profit forecasts for the full year ending in March 2020.

The sales forecast was lowered from 11.3 trillion yen to 10.6 trillion yen, down 8.4 percent from the previous year’s result.

The operating profit projection was cut from 230 billion yen to 150 billion yen, down 52.9 percent from the previous year. The net profit outlook was slashed from 170 billion yen to 110 billion yen, down 65.5 pct.

The company also lowered its global vehicle sales outlook, to 5.24 million units from 5.54 million units.

Jiji Press