Among all Japanese automakers Nissan posted the lowest annual profit, mainly due to the lingering anti-Japan sentiment in China.
During the financial year ended March, Nissan’s net income was up 0.3% to 342.4 billion yen ($3.4 billion) and the company’s forecast of 420 billion profit for the next financial year is the smallest among the three largest automakers in Japan. In China, Nissan outsells all its domestic rivals, but the anti-Japan sentiment and protests which flared in September. All Japanese automakers saw their sales dramatically fall for three consecutive quarters.
“The impact from China issues is significant,” said Koichi Sugimoto, an auto analyst at BNP Paribas SA in Tokyo. “Even in the January-to-March quarter, there wasn’t a recovery yet. Although they’ll improve in the second half, we can’t be too positive.”
Nissan predicts that its net income will increase 23% for the year ending March, which would be the highest level in the pats 6 years and revenue is expected to go up 7.7% to 10.37 trillion yen. The Japanese automaker sees its sales rise to 5.3 million units, relying on its new Teana sedan in China and the redesigned Altima sedan in the US. During the first quarter net income hit 1110.1 billion yen, higher than the analysts’ estimates of 93.6 billion yen.