Japan’s Nissan returns to profit, forecasts profit for year

Jul 28, 2021, 2:45 AM | Updated: 3:21 am

TOKYO (AP) — Nissan reported a 114.5 billion yen ($1 billion) profit for the April-June quarter as its sales and profitability improved, especially in the U.S. market.

The Japanese automaker says it expects to return to profit for the fiscal year through March 2022, with a 60 billion yen ($545 million) profit. It had previously expected to sink into a 60 billion yen annual loss.

“We have delivered a strong performance in the first three months of our new fiscal year,” said Nissan Chief Executive Makoto Uchida.

He acknowledged “uncertainties will remain across our operating environment” in the months ahead, while promising Nissan was regaining “its shine.”

The positive results in April-June were a reversal from a 285.6 billion yen loss the year before.

Nissan Motor Co. has been battered by weaker sales and computer chip shortages that have hit automakers during the pandemic.

The maker of the Leaf electric car and Infiniti luxury models has also seen its brand tarnished by the 2018 arrest of its former superstar executive Carlos Ghosn.

If realized, Nissan’s return to profit will come after two straight years of red ink, with a 449 billion yen loss racked up in the last fiscal year. That came on top of an even bigger loss of 671 billion yen the year before.

Quarterly sales almost doubled to 2 trillion yen ($18 billion) from 1.2 trillion yen a year earlier.

Nissan, based in the port city of Yokohama, kept unchanged its projection for global vehicle sales at 4.4 million vehicles, climbing 9% from 4 million vehicles sold in the last fiscal year.

Ghosn, sent in by French alliance partner Renault in 1999 to lead a near-bankrupt Nissan, was arrested on charges of under-reporting his future compensation and of breach of trust in using Nissan money for personal gain.

He fled to Lebanon, the nation of his ancestry, while out on bail in late 2019. Ghosn says he is innocent.

In its earnings report, Nissan reiterated its complaints against Ghosn, saying he hurt the company by buying homes in Lebanon and Brazil, giving payments to his sister and using a corporate jet for personal reasons.

Ghosn has said he needed the homes, his sister’s help and jet travel for his work.

An American and his son, extradited to Japan from the U.S. on charges of helping a criminal escape, were convicted earlier this month for their involvement in Ghosn’s flight from Japan.

Michael Taylor was sentenced to two years in prison and his son Peter Taylor to one year and eight months in prison.

Former Nissan executive Greg Kelly, another American, is on trial in Tokyo on charges of helping Ghosn under-report his compensation.

Kelly says he is innocent and has testified that he was only trying to find legal ways to pay Ghosn after Ghosn took a pay cut in 2010. That’s when disclosure of big executive pay became required in Japan.

Japanese executives are generally not paid as much as their American counterparts. Kelly’s verdict is not expected until next year. Other Nissan officials knew about Ghosn’s pay situation. But only Kelly was arrested with Ghosn.

___

Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Associated Press

2 rock climbers found dead in Southern California

IDYLLWILD, Calif. (AP) — Two rock climbers were found dead near a Southern California peak after rescue crews responded to reports of injuries, authorities said. Rescuers were called around 12:30 p.m. Wednesday to Tahquitz Rock near Idyllwild following a distress call, the Cal Fire/Riverside County Fire Department said on Twitter. A team managed to climb […]
20 hours ago
U.S. Vice President Kamala Harris, center left, stands next to the demarcation line at the demilita...
Associated Press

S. Korea, US and Japan hold anti-N. Korean submarine drills

SEOUL, South Korea (AP) — South Korea, U.S. and Japanese warships launched their first anti-submarine drills in five years on Friday, after North renewed ballistic missile tests this week in an apparent response to bilateral training by South Korean and U.S. forces. The North’s recent five missiles launches, the first such tests in a month, […]
20 hours ago
Cincinnati Bengals' Josh Tupou (68) reacts after sacking Miami Dolphins quarterback Tua Tagovailoa ...
Associated Press

Tagovailoa stretchered off field with head, neck injuries

CINCINNATI (AP) — Miami Dolphins quarterback Tua Tagovailoa sustained neck and head injuries after being sacked in Thursday’s game against the Cincinnati Bengals and was taken to a hospital for further evaluation. The Dolphins said Tagovailoa was conscious and had movement in all his extremities after being taken by stretcher from the field. He was […]
20 hours ago
FILE - This photo shows an aerial view of former President Donald Trump's Mar-a-Lago club in Palm B...
Associated Press

Trump records probe: Tensions flare over special master

WASHINGTON (AP) — The parallel special master process spawned by the FBI search of Donald Trump’s Florida estate has slowed the Justice Department’s criminal investigation and exposed simmering tensions between department prosecutors and lawyers for the former president. As the probe into the presence of top-secret information at Mar-a-Lago continues, barbed comments in recent court […]
20 hours ago
FILE - Sheriff's deputies recover the remains of a victim of the Camp Fire in Paradise, Calif., Nov...
Associated Press

Ex-PG&E execs to pay $117M to settle lawsuit over wildfires

OAKLAND, Calif. (AP) — Former executives and directors of Pacific Gas & Electric have agreed to pay $117 million to settle a lawsuit over devastating 2017 and 2018 California wildfires sparked by the utility’s equipment, it was announced Thursday. The settlement was announced by the PG&E Fire Victim Trust, which was established to handle claims […]
20 hours ago
A consumer uses a Discover card to purchase gasoline at a Sam's Club in Madison, Miss., Thursday, J...
Associated Press

US economy drops at 0.6% annual rate from April through June

WASHINGTON (AP) — Battered by surging consumer prices and rising interest rates, the U.S. economy shrank at a 0.6% annual rate from April through June, the government announced Thursday, unchanged from its previous second-quarter estimate. It marked the second consecutive quarter of economic contraction, one informal rule of thumb for a recession. Most economists, citing […]
20 hours ago

Sponsored Articles

...
Children’s Cancer Network

Children’s Cancer Network celebrates cancer-fighting superheroes, raises funds during September’s Childhood Cancer Awareness Month

Jace Hyduchak was like most other kids in his kindergarten class: He loved to play basketball, dress up like his favorite superheroes and jump as high as his pint-sized body would take him on his backyard trampoline.
...
Sanderson Ford

Don’t let rising fuel prices stop you from traveling Arizona this summer

There's no better time to get out on the open road and see what the beautiful state of Arizona has to offer. But if the cost of gas is putting a cloud over your summer vacation plans, let Sanderson Ford help with their wide-range selection of electric vehicles.
...
Day & Night Air Conditioning, Heating and Plumbing

Most plumbing problems can be fixed with regular maintenance

Instead of waiting for a problem to happen, experts suggest getting a head start on your plumbing maintenance.
Japan’s Nissan returns to profit, forecasts profit for year