Car manufacturer Nissan has reported a return to profit despite contending with the impacts of Covid, semiconductor chip shortages and rising raw materials prices.
The Japanese multinational said operating profit reached £1.5bn (¥247.3bn), up from a loss of £947m (¥150.7bn) and the first return to profitability in three years for the firm.
Revenue for the year was £51.3bn (¥8.42trillion) up from £49.6bn (¥7.86trillion) as Nissan sold 3,876,000 vehicles globally, a 4.3% drop from the previous year - owing to the semiconductor shortage.
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In a separate update on its Nissan NEXT transformation plan - launched in May 2020 - the manufacturer said it would expand its UK electric vehicles hub concept, which includes its Sunderland base, to core markets in the US, China and Japan. Nissan was reported to be considering building a third electric vehicles factory in the US.
The NEXT plan also aims to expand Nissan's electric vehicle offer to 40% of its models by 2026 which will involve developing lower cost, cobalt-free lithium-ion batteries such as those to be built at the forthcoming Envision AESC gigafactory in Sunderland.
Makoto Uchida, Nissan president and chief executive, said: “As we prioritize every effort to deliver long-term sustainable growth, we will move towards a progressive future as Nissan accelerates its electrification goals and technology innovations. Nissan is on the right path, and we are confident the company will achieve its full potential – targeting a 5% core operating profit margin – while we pursue significant advancements in mobility and beyond.”
Looking ahead, Nissan said the ongoing semiconductor shortages, higher raw materials prices and logistics costs, the war in Ukraine and the impact of lockdowns in China would make market conditions in 2022 "more severe".
Despite the challenges the firm said it aimed to maintain operating profit at the same level.
Mr Uchida added: “Fiscal year 2022 will be an important year as we move toward 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 margin in fiscal year 2023.”
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