Japan’s second largest automaker announced Wednesday its first quarter operating profit jumped 58 percent, backed by increased demand for its models in the United States and China.
The company, which discussed the earnings of the first quarter of the current fiscal year, announced its operating profit for the period between April and June surged to 193.71 billion yen ($1.57 billion) from 122.61 billion yen during the same period last year, also backed by the continued depreciation of the home currency that lifted the company’s returns from overseas sales. First-quarter net profit jumped 36 percent to 152.80 billion yen and revenue grew 18 percent to 2.9 trillion yen. These figures were buoyed by the 5.5 percent higher sales registered across the growing US auto market, Nissan’s largest, while China – the world’s biggest auto market – jumped 11 percent in deliveries for Nissan. That’s even as the automaker’s second largest market is being weakened by concerns for the economic situation and the stock market turmoil. “The immediate situation (in the Chinese market) is tough and we can’t let our guard down,” commented on the matter Nissan Corporate Vice President Joji Tagawa.
Showing concern for the outcome during the second half of the year, Nissan decided not to amend its financial target for the year ending March 2016, forecasting its full year operating profit would reach 675 billion yen, up from 590 billion yen during the past financial exercise. In the US, Nissan has been struggling to meet surging demand and the carmaker earlier this year announced it would start production output of its popular Rogue small crossover vehicle in Japan for export to North America starting with spring 2016 – also taking advantage of the weaker yen that makes exports highly competitive.
Via Automotive News Europe