Japan’s Nissan sees profit for latest quarter but warns of Middle East and China woes
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- Nissan recorded a 3.8 billion yen ($24M) net profit in January-March, reversing a 115.8 billion yen loss from the same period of 2025, with quarterly sales rising 9.5% to 2.96 trillion yen ($19B).
- CEO Ivan Espinosa said cost-cutting is gaining momentum, but difficulties persist in the Middle East while sales grow in the U.S. and Japan.
- The company lowered its annual sales forecast to 3.15 million vehicles from a prior 3.3 million target, blaming fierce competition from Chinese automakers in the electrification segment.
- Nissan cited the war in Iran and the effective closure of the Strait of Hormuz as disrupting a key export route to the Middle East.
- A magnitude 7.1 earthquake in Kumamoto, southwestern Japan, partially stalled Nissan's production lines, with disruption expected to last until Wednesday and affect 5,000 vehicles.
- In the U.S., Japanese automakers continue to face 15% tariffs imposed by President Donald Trump, down from an initial 27.5% rate but above the earlier 2.5%.
- Nissan held firm on its full-year profit forecast of 20 billion yen ($127M) on 13 trillion yen ($83B) in sales for the fiscal year ending March 2027.
Why it matters: Nissan's return to quarterly profit obscures structural problems: cutting the annual sales target concedes it can't compete with Chinese EV makers, while Strait of Hormuz disruptions and 15% U.S. tariffs squeeze margins. Holding the full-year profit forecast despite lower volumes puts the turnaround entirely on cost-cutting, not growth.
