Nissan drop less than feared
Source: Agencies |
July 28, 2011, Thursday
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NISSAN'S quarterly profit dropped a smaller-than-expected 20 percent as Japanese automakers took a battering from the earthquake and tsunami disaster that disrupted car production and destroyed dealerships.
A soaring yen and rising material costs helped drag net profit for the fiscal first quarter down to 85 billion yen (US$1 billion) from 106.6 billion yen in the same period last year, Nissan Motor Co said yesterday.
But Nissan Chief Executive Carlos Ghosn said the numbers show the maker of the Leaf electric car and Infiniti luxury models is holding up, despite the huge odds.
Nissan's production has been recovering faster than its rivals, and faster than the company had expected.
The result also outdid forecasts. A FactSet survey of analysts had forecast a profit of 55 billion yen ($705 million).
Nissan, Japan's second biggest automaker, sold 1.056 million vehicles in the quarter, up 10.6 percent from a year earlier. Quarterly sales edged up 1.6 percent to 2.08 trillion yen.
"Our rapid recovery from the natural disasters in March once again shows the power of Nissan in responding effectively to crisis," Ghosn said.
Last month, Ghosn disclosed a five-year growth plan, his most ambitious since the revival plan for Nissan that he set in motion in 1999.
He announced Tuesday an US$8 billion expansion plan for China, aiming to nearly double annual sales in China to 2.3 million vehicles by 2015, from 1.3 million last year.
A big uncertainty is the unfavorable exchange rate, which hurts all the Japanese automakers. Nissan is counting on the dollar trading at 80 yen, but it sunk below 78 yen in Tokyo yesterday.
Nissan stock fell 1.9 percent to close at 848 yen in Tokyo, where trading ended before earnings were announced.
A soaring yen and rising material costs helped drag net profit for the fiscal first quarter down to 85 billion yen (US$1 billion) from 106.6 billion yen in the same period last year, Nissan Motor Co said yesterday.
But Nissan Chief Executive Carlos Ghosn said the numbers show the maker of the Leaf electric car and Infiniti luxury models is holding up, despite the huge odds.
Nissan's production has been recovering faster than its rivals, and faster than the company had expected.
The result also outdid forecasts. A FactSet survey of analysts had forecast a profit of 55 billion yen ($705 million).
Nissan, Japan's second biggest automaker, sold 1.056 million vehicles in the quarter, up 10.6 percent from a year earlier. Quarterly sales edged up 1.6 percent to 2.08 trillion yen.
"Our rapid recovery from the natural disasters in March once again shows the power of Nissan in responding effectively to crisis," Ghosn said.
Last month, Ghosn disclosed a five-year growth plan, his most ambitious since the revival plan for Nissan that he set in motion in 1999.
He announced Tuesday an US$8 billion expansion plan for China, aiming to nearly double annual sales in China to 2.3 million vehicles by 2015, from 1.3 million last year.
A big uncertainty is the unfavorable exchange rate, which hurts all the Japanese automakers. Nissan is counting on the dollar trading at 80 yen, but it sunk below 78 yen in Tokyo yesterday.
Nissan stock fell 1.9 percent to close at 848 yen in Tokyo, where trading ended before earnings were announced.
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