Nissan says 2022 will be ‘severe’ due to chip shortage and Ukraine crisis

Nissan expects the market environment to be more severe than in FY 2021 due to ongoing semiconductor supply shortages, high raw material prices and logistical costs, as well as the crisis in Ukraine and the impact of lockdowns on parts supplies to China.

The Japanese carmaker aims to maintain operating profit at the same level as FY 2021, ensure product momentum, improve sales quality and strengthen financial discipline and fixed cost control.

In fiscal year 2021, the company said the situation was extremely challenging, influenced by factors such as the prolonged spread of covid, the shortage of chips and high raw material prices. Despite these challenges, Nissan continues to make steady progress with its Nissan Next conversion plan, strengthening its business base, improving sales quality and bringing new models to market.

Commenting on the results, Makoto Uchida, President and CEO of Nissan, said: While we expect the business environment to become even more challenging, we are confident in achieving our transformation plan and remain confident that Nissan remains a truly healthy and resilient company that can be financially stable and profitable in any business environment and sustain sustainable growth. We will ensure the target of 5% operating margin 3 in FY 2023. ”

For the full fiscal year, net revenue was 8.42 trillion yen, resulting in operating profit of 247.3 billion yen and net income of 215.5 billion yen. Also, the fiscal year returned Nissan’s first profit in three years.