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TOKYO -- Embattled Nissan reported a 19 percent increase in operating profit in the latest quarter as cost control, better pricing power and lower incentives bolstered results.

Operating profit rose to 27.1 billion yen ($262.5 million) in the automaker's fiscal third quarter ended Dec. 31, the company said on Tuesday in its financial results announcement.

But Nissan's quarterly net loss expanded to 37.8 billion yen ($366.1 million), from 26.1 billion yen ($252.8 million) the year before. Revenue fell 11 percent to 2.22 trillion yen ($21.50 billion) in the October-December period, as global sales declined 9.6 percent to 1.08 million vehicles.

In the just-finished fiscal third quarter, North American sales fell 20 percent to 323,000 units. Regional operating profit retreated 33 percent to 14.5 billion yen ($140.4 million) in the period.

Sales in Europe decreased 16 percent to 109,000 vehicles, while the regional business there rebounded to a narrow operating profit of 3.1 billion yen ($30.0 million) from a year-earlier loss.

Citing continued uncertainty about the COVID-19 pandemic and the impact of the global semiconductor shortage, Nissan trimmed its global sales forecast for the current fiscal year ending March 31. It now expects volume to total 4.02 million vehicles, down from its earlier forecast of 4.17 million. The new target represents a 19 percent drop from the previous fiscal year.

COO Ashwani Gupta predicted the semiconductor bottleneck would clear up by May or June.

Despite cutting the sales outlook by 150,000 units, Nissan upgraded its full-year profit outlook.

It now expects an operating loss of 205.0 billion yen ($1.99 billion) in the year to March 31, as opposed to a negative 340.0 billion yen ($3.29 billion) forecast in November. Despite the upgrade, the new target still represents a record operating loss for the company.

Still, CEO Makoto Uchida said improved cost control and a better mix of retail volume and value pricing is gradually lifting profitability. In the first nine months of the current fiscal year, for example, Nissan said revenue per unit is up 1.7 percent, the rental mix is down 6 points, inventory is down 25 percent and fixed costs are 12 percent lower.

A stream of new product, such as the redesigned Rogue crossover in the U.S. and the next-generation Note e-Power in Japan, are boosting Nissan's brand and pricing power.

Uchida and Gupta are spearheading a recovery plan called Nissan Next that chops global production capacity, slashes 300 billion yen ($2.91 billion) in fixed costs and focuses on new product. But the COVID-19 pandemic is complicating the recovery.

Regarding media reports that American tech giant Apple is canvassing global automakers for a partner to make its upcoming car, Uchida dodged a straight answer when asked whether Nissan had been approached. But he said Nissan is open to collaborating with new industry entrants.

"We need to work with the companies who are knowledgeable with good experience, through partnership and collaboration. So, this is an option that we may take," Uchida said.

"So, when new companies emerge in the auto industry, that's a possibility too."

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Nissan operating profit rose in latest quarter on better cost control, lower incentives - Automotive News Europe