Nissan: 9-mth profit soars on US sales

0

TOKYO: Nissan on Wednesday said strong North American sales drove it to another surging profit, and added that the world’s top auto market China was picking up.

Advertisements

The Altima sedan maker said its April-December net profit jumped nearly 34 percent to 452.8 billion yen ($3.7 billion) from a year earlier, despite weakness in Japan and emerging markets.

Nissan, which also said revenue jumped more than 10 percent to 8.94 trillion yen, is the last of Japan’s Big Three automakers to report its nine-month results.

The company left unchanged its full-year profit forecast.

Nissan and its top domestic rivals, Toyota and Honda, have benefited from healthy growth in the US where low interest rates proved a boon to consumers, although the slim possibility of rate hikes this year could dampen sales.

Weakening demand in emerging markets such as Thailand and Indonesia, as well as a planned consumption tax hike in Japan next year, could also eat into the market.

“In Japan and certain emerging markets, we have seen some challenges, but there is a positive trend in North America so we have not revised our forecast,” corporate Vice President Joji Tagawa told reporters.

He added that China, where Nissan’s latest sales rose about two percent, was showing signs picking up, amid fears that a slowdown in the economy threatened car demand.

Rival Toyota has said its latest net profit jumped nearly 10 percent to 1.9 trillion yen, despite falling sales in most regions except North America, with the world’s top automaker focused on squeezing more productivity out of its plants.

Honda also said North America was a bright spot that helped offset sluggish sales at home, as Japan’s economy stumbles and younger people increasingly turn away from owning a car.

Rolling out new models in North America and in Europe drove up sales, Nissan said.

“Our product offensive has reaped rewards in North America and Western Europe, where buoyant consumer demand and rising unit sales underpinned Nissan’s overall profit-growth,” Carlos Ghosn, president and chief executive officer, said in a statement.

For the nine-month period, Nissan’s global unit sales figure rose 1.4 percent 3.89 million vehicles.

AFP

Share.
loading...
Loading...

Please follow our commenting guidelines.

Comments are closed.