Japan’s second largest automaker, Nissan Motor Co has released its forecast for the full fiscal year 2014/15, with the net profit set to increase by 4.1%, which is slightly below analysts anticipated.
The automaker has been strengthened by the sale sin emerging markets, but as it massively invests to undergo a never before seen expansion, its costs become a big burden on the company’s anticipated earnings. The operating margin is actually the lowest among the Japanese rivals.
“We were expecting Nissan’s guidance to fall short of analyst expectations and it seems it has turned out to be true. We think Nissan will be having a hard time, unlike some of its competitors,” said a trader at a European firm.
The 4.1% profit increase of the carmaker, expected for the year to end March 31, 2015, would be buoyed by the evolution of the affordable brand Datsun and by the evolution of the company in the world’s largest automotive market, China.
The forecasted 405 billion yen ($3.98 billion) in net profit is weighed down by the 5% operating margin guidance for the period, which is just 0.2% up from the previous year and a lot less than what Toyota – with an 8.9% margin an Honda – with a 6% margin, have forecasted.