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

Article by Christian Andrei, 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:


Login or Create new account to add a comment!


We’ve seen quite a lot of intriguing stories in the age of Internet (where the most interesting part was revealed before the story unfolds). Some are from movies and novels...
by - October 26, 2016
Many people have long known that the new 2018 RS5 was being developed by Audi AG. Enthusiasts the world over were excited when a prototype was seen running on the...
by - October 26, 2016
It was only recently when BMW officially debuted the new 2017 5-Series Saloon (G30) online. At that time, this range revealed that it had driving dynamics that was the best...
by - October 26, 2016
Starting early 2017, the new Audi Q7 will be available with the new 2.0-liter TFSI four-cylinder engine that makes it not only faster but also lighter and more efficient than...
by - October 25, 2016
Soon, Fiat Chrysler’s Dodge brand will be ending the production of the Dodge Viper. So practically, the 2017 Dodge Viper will be the last Viper up for grabs. Gerry Wood...
by - October 25, 2016