Surging sales lift Nissan's net
By Yuri Kageyama |
November 5, 2010, Friday
|
Print Edition
Print Edition
NISSAN'S quarterly net profit quadrupled and the auto maker raised its full-year forecasts as surging sales overcame the drag from a strong yen.
Nissan Motor Co said yesterday its second quarter profit totaled 101.73 billion yen (US$1.26 billion), up dramatically from 25.53 billion yen a year earlier.
Sales at the Japanese auto maker, which makes the March subcompact and Leaf electric car, gained 21.4 percent to 2.269 trillion yen.
But Chief Operating Officer Toshiyuki Shiga said the company's performance in the October-March second half was unlikely to be as robust because of the rising yen and increases in raw material and engineering costs.
Still, Nissan was upbeat, raising its forecasts for the full year through March to a 270 billion yen profit from an earlier projection of 150 billion yen profit. That would mark a sixfold improvement over the previous fiscal year.
It now expects 8.77 trillion yen in full year sales, better than the 8.2 trillion yen estimated in May.
Those revisions came despite unfavorable currency rates. Nissan had estimated the dollar trading at about 89 yen, but now expects 80 yen for the second half.
The surging yen erodes the value of overseas earnings and hurts Japanese exporters such as Nissan.
Nissan, allied with Renault SA of France, is vying to be Japan's No. 2 auto maker against Honda Motor Co after Toyota Motor Corp, the world's biggest car maker by vehicle sales.
Honda also has shown resilience when faced with a strong yen, reporting robust profit for the latest quarter. It also raised its profit forecast for the full year to 500 billion yen. That would mark an 86 percent jump from the previous year. Toyota reports earnings today.
The expected increase in Nissan's second-half costs will partly come from the introduction of 10 new models globally, including the zero-emission Leaf electric car, set for delivery in Japan and the United States in December, according to the company, based in Yokohama, southwest of Tokyo.
"Demand for the Leaf has been robust," said Shiga. "Our zero-emission strategy is on track."
The big concern was the strong yen, which Shiga has repeatedly called a "serious crisis" that could drive manufacturing out of Japan. At the same time he said Nissan intends to keep annual production of a million vehicles in Japan.
Nissan Motor Co said yesterday its second quarter profit totaled 101.73 billion yen (US$1.26 billion), up dramatically from 25.53 billion yen a year earlier.
Sales at the Japanese auto maker, which makes the March subcompact and Leaf electric car, gained 21.4 percent to 2.269 trillion yen.
But Chief Operating Officer Toshiyuki Shiga said the company's performance in the October-March second half was unlikely to be as robust because of the rising yen and increases in raw material and engineering costs.
Still, Nissan was upbeat, raising its forecasts for the full year through March to a 270 billion yen profit from an earlier projection of 150 billion yen profit. That would mark a sixfold improvement over the previous fiscal year.
It now expects 8.77 trillion yen in full year sales, better than the 8.2 trillion yen estimated in May.
Those revisions came despite unfavorable currency rates. Nissan had estimated the dollar trading at about 89 yen, but now expects 80 yen for the second half.
The surging yen erodes the value of overseas earnings and hurts Japanese exporters such as Nissan.
Nissan, allied with Renault SA of France, is vying to be Japan's No. 2 auto maker against Honda Motor Co after Toyota Motor Corp, the world's biggest car maker by vehicle sales.
Honda also has shown resilience when faced with a strong yen, reporting robust profit for the latest quarter. It also raised its profit forecast for the full year to 500 billion yen. That would mark an 86 percent jump from the previous year. Toyota reports earnings today.
The expected increase in Nissan's second-half costs will partly come from the introduction of 10 new models globally, including the zero-emission Leaf electric car, set for delivery in Japan and the United States in December, according to the company, based in Yokohama, southwest of Tokyo.
"Demand for the Leaf has been robust," said Shiga. "Our zero-emission strategy is on track."
The big concern was the strong yen, which Shiga has repeatedly called a "serious crisis" that could drive manufacturing out of Japan. At the same time he said Nissan intends to keep annual production of a million vehicles in Japan.
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