Photo: Nissan
We’ve known for a while that the chip shortage is here to stay, but if you were hoping the crisis would come to an end this year, more and more signs suggest this wouldn’t be the case.
Nissan is one of the names that are currently struggling with the constrained chip inventory, and the company’s latest earnings report shows just how awful the whole thing is becoming.
First and foremost, it’s important to know that Nissan’s net profit went down no more, no less than 60 percent in the quarter ended June. More specifically, Nissan reported a net profit of $347 million, and this represents a decline of 58.9 percent as compared to the same quarter a year ago.
While Nissan has confirmed that the chip shortage is partly to blame for this decline, it’s not actually the only cause the net profit went down. Last year, the Japanese carmaker also unloaded Daimler sales, while this year, the company is also struggling with other problems, including the restrictions hitting suppliers in China and the rising costs of materials.
This doesn’t necessarily mean that Nissan is pessimistic about the remainder of the year. The carmaker isn’t changing its annual target, as it hopes the net profit would still reach ¥150 billion ($1.1 billion).
But while, at first glance, these figures are encouraging, they don’t actually highlight the challenges Nissan is struggling to deal with until comparing them with last year’s numbers. The forecast represents a drop of over 30 percent, as Nissan acknowledged the global chip inventory problems and the disruptions caused by China’s lockdowns.
At this point, it still seems impossible to guess when the chip shortage could come to an end. On the other hand, tech giant Logitech has recently proclaimed the chip shortage would be over this year, with substantial signs of recovery already being recorded in the computing industry.
First and foremost, it’s important to know that Nissan’s net profit went down no more, no less than 60 percent in the quarter ended June. More specifically, Nissan reported a net profit of $347 million, and this represents a decline of 58.9 percent as compared to the same quarter a year ago.
While Nissan has confirmed that the chip shortage is partly to blame for this decline, it’s not actually the only cause the net profit went down. Last year, the Japanese carmaker also unloaded Daimler sales, while this year, the company is also struggling with other problems, including the restrictions hitting suppliers in China and the rising costs of materials.
This doesn’t necessarily mean that Nissan is pessimistic about the remainder of the year. The carmaker isn’t changing its annual target, as it hopes the net profit would still reach ¥150 billion ($1.1 billion).
But while, at first glance, these figures are encouraging, they don’t actually highlight the challenges Nissan is struggling to deal with until comparing them with last year’s numbers. The forecast represents a drop of over 30 percent, as Nissan acknowledged the global chip inventory problems and the disruptions caused by China’s lockdowns.
At this point, it still seems impossible to guess when the chip shortage could come to an end. On the other hand, tech giant Logitech has recently proclaimed the chip shortage would be over this year, with substantial signs of recovery already being recorded in the computing industry.
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