Japan’s Nissan sees profit for latest quarter but warns of Middle East and China woes
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- Nissan posted a 3.8 billion yen ($24 million) net profit for April-June, reversing a 115.8 billion yen loss in the same period of 2025, with quarterly sales of 2.96 trillion yen ($19 billion) up 9.5% year-over-year.
- CEO Ivan Espinosa warned that the war in Iran has effectively closed the Strait of Hormuz, a key route for Japan's Middle East exports, while Nissan faces fierce competition from Chinese automakers who have taken the lead in electrification.
- Nissan cut its annual sales projection to 3.15 million vehicles from an earlier forecast of 3.3 million, largely citing problems in China.
- A magnitude 7.1 earthquake in Kumamoto, southwestern Japan, partially stalled production lines, with disruption expected to last until Wednesday and affecting 5,000 vehicles; no employees were hurt and no facilities damaged.
- In the U.S., tariffs on Japanese automakers were negotiated down to 15% from an initial 27.5%, though still well above the earlier 2.5% rate, compounding higher material costs.
- Nissan held its full-year forecast of 20 billion yen ($127 million) profit on 13 trillion yen ($83 billion) in sales; shares dipped more than 3% in Tokyo trading after the announcement.
Why it matters: Nissan returned to quarterly profit while simultaneously lowering its full-year sales outlook, blaming Chinese EV competition and Iran war-driven Strait of Hormuz disruptions for headwinds. A Kumamoto earthquake disrupting 5,000 vehicles and U.S. tariffs sitting at six times the pre-Trump 2.5% rate add structural pressure, and the 3% share drop signals investors see cost-cutting gains as insufficient against the mounting challenges.
