Nissan grew 37% in quarter ended June 2014

Article by Andrew Christian, on July 30, 2014

Nissan Motor Co. posted a 37-percent surge in net income in the first quarter ended June 30, 2014 to JPY112.1 billion ($1.1 billion). The carmaker saw its sales jump 10 percent to JPY2.47 trillion in the quarter, as boosted by stronger sales in the United States and China. Quarterly operating also climbed 13 percent to JPY122.6 billion.

Nissan chief executive officer Carlos Ghosn said in a statement that both revenues and profit were positively affected by “encouraging demand” for new products and benefits from recent site investments, as well as improving market conditions in North America, China and Europe.

Nissan logged JPY51 billion in operating profit in the April-June quarter in In North America, a significant rise from JPY41.8 billion posted in the same period in 2013. The carmaker managed to overcome production delays for key models and hiked its sales in the first six months of 2014 by 13 percent.

Ghosn said that with the good start for Nissan’s fiscal year, the carmaker is well-placed to deliver on its outlook given its continued product offensive and measures to improve competitiveness, increase market share and the ongoing benefits of its alliance with Renault.

So far in 2014, Nissan has managed to post better sales growth than Honda Motor Co. and Toyota Motor Corp. in the US and China. At this pace, Nissan aims to post an 8 percent operating margin and 8 percent global market share.

Nissan had a 4.8-percent margin in the last fiscal year, the worst among Japanese carmakers. Nissan attributed the low margin to the cost of an accelerated expansion targeted towards increasing its global market share.

Kota Yuzawa, an auto analyst at Goldman Sachs Group, remarked that in terms of Nissan’s full-year plan, the carmaker is “pretty much on track." He noted that Nissan’s sales in China are “quite strong” this year.

Nissan is expecting its global deliveries to surge 8.9 percent to 5.65 million vehicles in the fiscal year ending March 2015, onwards to a 6.7 percent global market share. Nissan is also expecting revenue to jump 3 percent to JPY10.79 trillion and its operating profit to leap 7 percent to JPY535 billion.

Topics: nissan, sales

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