Nissan’s profit rises on China demand image

The Japanese automaker’s profit for the April-June quarter rose 13.4% while net income jumped 37%. The expanses were backed by rising sales in the first and second world markets for the maker – the US and China.

The carmaker, search which is in an alliance with Renault, medical Europe’s third biggest automaker, said operating profit reached 122.6 billion yen (708 million). Net income was of 112.1 billion yen ($1.1 billion) – both figures beat average estimates of analysts compiled by both Reuters and Bloomberg.

“Nissan is well placed to deliver on its outlook given our continued offensive along with measures to enhance competitiveness, build market share and the ongoing benefits of our alliance strategy,” Nissan Chief Executive Officer Carlos Ghosn said in a statement.

“The full-year guidance isn’t conservative,” added Joji Tagawa, a Nissan corporate vice president. “We gave warnings two years in a row and this year we intend to hit guidance. We have learned a lot of lessons since November and taken many measures, so we are seeing the results now.”

China, the automaker’s second largest market, saw demand increasing 21% in the quarter to 283,000 units, with the executives confident the company can meet its full-year sales goal. The carmaker also reiterated its target of global deliveries going up 8.9 percent to 5.65 million cars this fiscal year.

Via Bloomberg