Nissan posts surprise profit, raises forecasts2021|01:30
Nissan posted a surprise profit on Wednesday (July 28). For the quarter to the end of June, the Japanese automaker saw operating profit hit almost $689 million, when analysts had forecast a significant loss. Nissan was helped by a weaker yen, which boosted its overseas earnings. Demand in the U.S. also came in strong. Sales there were up 68% over the period. But Chief Executive Makoto Uchida says the firm is still battling many headwinds. Rising raw material prices are one problem. Then there's the global shortage of computer chips, which is afflicting the whole industry. Uchida says that's a complex picture. He says you have to take into account the situation at suppliers, and the impact of the health crisis. Outlooks on the silicon drought differ. Peugeot- and Jeep-maker Stellantis says it expects the problem to drag on into next year. Volkswagen says it sees signs that the crunch is easing. For now, Nissan says it has been able to manage its chip stockpile to minimise any impact. After Wednesday's better-than-expected numbers, the firm is also raising its outlook for the year. It now expects an operating profit of 150 billion yen, or almost $1.4 billion. Back in May it had forecast breaking even.