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

Article by Christian Andrei, 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

Login or Create new account to add a comment!

Recommended

Nikola Motor’s hydrogen-powered semi-trailer truck is highly appealing with its many advancements but don’t expect it to arrive in the near future. In November 2016, Toyota announced the possibility of...
by - December 5, 2016
Usually, it is up to resourceful spy photographers to take clear pictures of vehicle prototypes, especially those that have aroused a lot of interest. The same is true for Project...
by - December 5, 2016
The much-anticipated debut of the new Wrangler will surely happen. As it approaches, we’ve gathered all the latest information released so far. Of course, most are expecting that the next...
by - December 5, 2016
Nissan has announced the pricing for its new commercial pickup line. So for those who have been waiting for Nissan’s official price list (plus a little more info), read on… ...
by - December 5, 2016
Sorry folks, the AMG-fied Mercedes-Benz X-Class will remain in the fantasy world. According to some news, the AMG big boss has finally spoken up about why an AMG X-Class is...
by - December 5, 2016
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