Nissan not changing its earnings forecast for the full year, despite income decrease

Article by Christian A., on February 11, 2013

Nissan Motor Co.’s profit declined by 35% after sales decreased in China and new models fell behind its rivals in the U.S. In the quarter that ended Dec. 31, the net income decreased to 54.1 billion yen ($581 million). For the same period the previous year, it posted a net income of 82.7 billion yen. Nissan is not changing its earnings forecast for the full year.

These results demonstrate how the China-Japan territorial clash is eclipsing the benefits from a weaker yen. Nissan CEO Carlos Ghosn has been asking for additional yen depreciation. Furthermore, Nissan was damaged after the new Altima’s sales (the topselling vehicle in the U.S.) fell behind the Toyota Camry and Honda Accord. Kota Yuzawa, an analyst at Goldman Sachs Group, has a “big exposure in China” and was affected much by the protests.

Due to the incentives war, the sales volume of new models in the U.S. is lower than Nissan’s expectations. In a statement, Ghosn said that how Nissan performed in the third quarter failed to meet expectations. He also said that Nissan will soon have “important vehicle launches” and that it expects additional correction to the yen. Nevertheless, Nissan has retained its average exchange-rate assumptions for the fiscal year at 79.7 yen to the dollar and 101.8 yen to the euro.

As Abe's administration aims to counteract deflation and revitalize Asia's No. 2 economy, the Japanese currency (which trades near its lowest levels in over two years) may end the year at 93 versus the dollar, according to the median of forecasts that Bloomberg had gathered.

The yen started falling in November as Prime Minister Shinzo Abe, who then runs for office, asked for "bold monetary policy" to beat deflation and pull down the yen’s value. This week, the Japanese currency decreased to 94.06 per dollar for the first time since May 2010, due to rumors that Japan's government will choose a new central bank chief dedicated to boosting monetary easing.

Topics: nissan

If you liked the article, share on:

Comments

Recommended

Automobili Lamborghini’s preparations for the production of its first ever sports utility vehicle, the new Lamborghini Urus, has reached new grounds as the Italian carmaker is disclosing plans to construct...
by - May 26, 2017
The upscale version of the GMC Yukon body-on-frame sport utility vehicle – the GMC Yukon Denali – has been refreshed for the 2018 model year. It now sports a new...
by - May 26, 2017
The largest gathering of Volkswagen and Audi cars in Europe is underway, and the German premium carmaker is displaying the third model of its G-Tron range at the 2017 Worthersee...
by - May 26, 2017
Have you been wondering how much you have to produce to acquire a 2018 Mercedes-Benz S-Class Facelift? Wonder no more, as Mercedes-Benz has already divulged the pricing – at least...
by - May 26, 2017
Following the M3’s new facelift earlier this year, BMW is once again bringing something fresh to the table. In its newest offering, a cheaper version of the high performance sedan...
by - May 26, 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