Nissan issues upbeat quarterly results with strong sales in North America, Asia

Article by Christian A., on February 17, 2016

According to its latest quarterly report, the operating profit of Nissan Motor Company for the said period rose 24 percent year-over-year, backed by cost-cutting efforts and the growing sales in North America. For the company's third fiscal quarter that ended on December 31, Nissan's global operating profit jumped from $1.29 billion last year to $1.60 billion.

Furthermore, its net income rallied 25 percent and was seen at $1.06 billion. At the same time, Nissan's revenue jumped 2.20 percent to $24.80 billion. Global retail sales added 1.70 percent for a total of 1.28 million units. The boost was generally backed by the hefty sales in North America and Asia.

For the period, sales in North America inched up 12 percent to 485,000 units, making the region Nissan's largest market. Nissan joins the wide array of car makers taking advantage of low oil prices, enhanced labor market, and cheap credit as a record number of Americans acquired new vehicles in 2015.

The gain in Nissan's sales outperformed some of its biggest rivals, Toyota Motor Company and Honda Motor Company, for the third consecutive year. The Rogue crossover led the boost in sales, jumping by 44 percent— the largest gain among leading vehicles. Tokai Tokyo Research Center analyst Seiji Sugiura claimed that the North American market is the "driving force" of Nissan's growth.

Asian Growth

In Asia, Nissan's sales sought a total gain of 5.70 percent to 365,000 units. The gain in emerging markets helped offset the 5.70 percent decline in China, which is suffering from an economic slowdown. Japan sales also dropped. Meanwhile, in Europe, sales were down despite the upbeat figures in Western Europe as the slump in Russia weighed it down.

Aside from the sales growth, the quarterly results can also be attributed to Nissan's cost-cutting efforts due to low raw material costs. The company's cost-cutting efforts made up $445.68 million of its operating profit for the quarter.

However, foreign exchange rates had a negative impact on Nissan's profits after injecting gains into the car maker over the past few quarters. The exchange rate for USD/JPY was not enough to make up for the losses incurred from other strong currencies such as the Canadian dollar, the Russian ruble, the Australian dollar, and the Mexican peso.

On the other hand, Nissan maintained its projections for the current fiscal year ending on March 31. The company forecasts to sell 5.50 million units around the world for the fiscal year, which is seven percent greater than last year's 5.14 million units.

Revenue is also expected to gain 7.70 percent to $101.66 billion. Furthermore, Nissan estimates that the full-year operating profit will jump 24 percent to $6.06 billion. Meanwhile, net income for the fiscal year is expected to advance 17 percent to $4.44 billion.

If you liked the article, share on:

Comments

Recommended

Polestar is notably known to be Volvo's internal performance specialists, and around last year Polestar revealed to the public that it will utilize electrification to further advance the power of...
by - June 26, 2017
Earlier this month, Porsche introduced to us the 911 Turbo S Exclusive Series. The car wore a Golden Yellow Metallic paint. The same time it was launched, the company said...
by - June 26, 2017
Last month, the Lamborghini Centenario made its way to the Transformers: The Last Knight premiere where it got the attention of many. Following that event, three Lamborghini Centenario coupes landed...
by - June 26, 2017
The Holy Trinity of hypercars may not be accessible anymore after being discontinued, but that doesn’t mean we won’t see any more hypercars in the future. What we know is...
by - June 26, 2017
Kia is taking things a step further with the new Kia Stinger, which they first introduced at the 2017 Detroit Auto Show. With the specs given to us by the...
by - June 25, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries