Nissan says 2022 will be ‘severe’ owing to chip shortage and Ukraine crisis

Nissan says that its outlook for the fiscal year 2022 will be more severe owing to factors such as the prolonged spread of Covid, the chip shortages, and high raw material prices.

Nissan expects the market environment to be more severe compared to the fiscal year 2021 due to ongoing semiconductor supply shortages, higher raw material prices and logistics costs, the crisis in Ukraine as well as the impact of lockdowns on parts supplies in China.

The Japanese carmaker aims to maintain an operating profit at the same level as the fiscal year 2021 ensuring the momentum of products, improving the quality of sales, and further strengthening financial discipline and control of fixed costs.

In FY 2021, the company said the situation was extremely challenging, affected by factors such as the prolonged spread of Covid, the chip shortages, and high raw material prices. Despite these challenges, Nissan has continued to make steady progress with its Nissan NEXT transformation plan by strengthening its business foundation, improving the quality of sales, and bringing new models to market.

Commenting on the results, Nissan president and CEO Makoto Uchida said: “The fiscal year 2022 will be important as we move toward the fiscal year 2023, the final year of Nissan NEXT. Although we expect the business environment to become even more challenging, we are confident to achieve our transformation plan and ensure Nissan remains a truly healthy and resilient company that in any business environment can be financially stable and profitable, and can maintain sustainable growth. We will reassure the plan’s target of a 5% operating margin3 in the fiscal year 2023.”

For the full fiscal year, net revenue was 8.42 trillion yen, resulting in an operating profit of 247.3 billion yen and a net income of 215.5 billion yen. Also, the fiscal year marked Nissan’s first return to profitability in three years.

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