TOKYO: Nissan Motor Co. said Thursday that its consolidated net profit in April-June plunged 58.9 pct from a year before to 47,112 million yen, and the operating profit fell 14.2 pct to 64,905 million yen, while sales rose 6.4 pct to 2,137,311 million yen.

The profit falls came as the positive effects of the yen’s depreciation were erased by the impacts of the global shortage of semiconductors, the COVID-19 lockdown in Shanghai and higher prices of steel and other materials.

Nissan kept its full-year earnings projections intact.

In the first quarter of the current business year, higher prices of steel, aluminum, resin and other materials eroded 50. 7 billion yen in operating profit, while the weaker yen against the dollar pushed up the profit by 25.7 billion yen.

Sales of Nissan vehicles dropped 21.8 pct to 819,000 units, due to the semiconductor shortage and the Shanghai lockdown.

Nissan Chief Operating Officer Ashwani Gupta said at a news conference that the situation is improving as the impact of the Shanghai lockdown has been resolved.

The COO indicated that the company will maintain its annual vehicle sales target at four million units.

JIJI Press