The company, Japan’s second-largest automaker and an automaker involved in a deep alliance with France’s Renault, said its quarterly profit rose above estimates thanks to an export boost provided by the weaker local currency.
The currency swing managed to increase earnings from the North American region, allowing the automaker to overcome a slump in demand in its other key markets – China and Europe. According to the Yokohama, Japan-based carmaker, net income climbed 16% to 124.9 billion yen ($1.1 billion) for the July to September period. That compares to an average estimate of 102.6 billion yen, compiled by Bloomberg from 14 analyst forecasts. Assisted by the rising earnings, the company has announced it’s sticking to its full-year guidance.
Nissan’s earnings coming from the US, where the company posted for the 13th consecutive month a new sales record in October, have been lifted by Japanese Prime Minister Shinzo Abe’s strive to bring down deflation in the world’s third-largest economy. According to figures provided by the carmaker, overall operating profit during the three months period jumped 22% to 139.3 billion yen, total deliveries climbed 6% to 2.68 trillion yen and the company lifted its full-year revenue guidance to 10.8 trillion yen from 10.79 trillion yen. US sales rose 13% so far this year, while Japan fell 19% over the six-month period that followed the increase in the country’s consumption tax.