February 13, 2025 10:23 GMT
AUTOMOTIVE: Nissan (NSANY Baa3[N]/BB+[N]/BBB-[N]): 3Q24 Results
AUTOMOTIVE
EBIT expectation was so close to zero that the miss isn’t relevant. Results were always going to be tough; focus is on the turnaround going forward. No real change here.
- Nissan reported revenue 2% ahead of consensus.
- EBIT missed by 40%, might margin at 1% versus 1.5% expected.
- Automotive FCF was -Y58bn, which shouldn’t be surprising, and better QoQ.
- FY24 revenue guidance was cut by 2%; consensus is already slightly below that. EBIT margin guidance is down 20bp to 1%, with 1.1% expected. That leaves EBIT guidance 8% below; again, this was already partly anticipated. It now sees lower volume and higher incentives but better FX.
- Cost saving plans were reiterated, aiming to reduce volume BEP to 2.5mn from 3.1mn units. Global production capacity will be reduced by 20%.
- Merger talks with Honda have officially ended, as was well flagged recently. They will instead pursue the prior agreed collaboration on tech and EVs. It confirmed it will seek new partnerships, with Hon Hai and KKR reportedly interested.
- Webcast replay https://www.youtube.com/watch?v=7SAJKrxbEQg.
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