Nissan lifts full-year profit estimates after positive third-quarter image

Japan’s second-largest automaker, Nissan Motor, has announced it decided to update the profit prediction for the fiscal year ending March 31 on the back of increased earnings stemming from the weaker yen and surging demand in the US.

The company has forecasted a better than anticipated profit due to increased export earnings riding the US demand and the continued depreciation of the Japanese currency. The Yokohama, Japan-based company announced in a recent statement that its projection for the net income in the year ending this March has gone up from 405 billion yen previously to 420 billion yen ($3.5 billion) now. The forecast for the full-year operating profit and net revenue were also raised, but the global sales quota was scaled back by 150,000 units to 5.3 million vehicles. Chief Executive Officer Carlos Ghosn seems convinced the continued demand in the US would be enough to offset Russia’s crisis, the slowing growth predicted for China and the recent slump in Japan. “The strong US trend will continue for a while and they will keep enjoying the ride in that market,” commented Koji Endo, an auto analyst at Advanced Research Japan.

Nissan’s operating profit jumped during the third fiscal quarter (ending in December) by 98 percent to 156 billion yen and sales climbed 17 percent to 2.94 trillion yen. In North America the Japanese automaker managed to boost its operating profit last quarter by 3.4 billion yen to 81.6 billion yen. In the US alone, deliveries soared 11 percent to a new record for 2014, outpacing the gains at Toyota and Honda, of 6.2 percent and 1 percent, respectively. Data sourced from Autodata Corp. showed that Nissan managed to beat Honda in January in the US for the first time since March last year.

Via Bloomberg