Nissan Motor Co. reported a net income of 30.8 billion yen ($380 million) for the first quarter ended March 31, 2011, compared to a net loss of 11.6 billion yen for the same period last year.
The company’s first quarter results exceeded the 23 billion yen average estimates of five analyst surveyed by Bloomberg. In addition, the company achieved sales of 2.35 trillion yen, reflecting an increase of 10 percent.
Nissan reveals positive growth in its profits while Toyota Motor Corp. recorded a decrease in earnings after the March 11 earthquake in Japan disrupted the automobile industry with the shortages of vehicle parts and electricity. Specifically, Toyota revealed a 77 percent drop in its fourth-quarter net income on Wednesday.
Nissan’s CEO Carlos Ghosn stated that the current quarter will be tougher for the company and its competitors in Japan while they recover from the drop in sales as well as the disruptions in production after the March 11 disaster.
According to auto analyst Koji Endo at Advanced Research Japan in Tokyo, the disaster’s impact on Nissan’s earnings is smaller compared to Toyota’s, as it has a lower dependency on its operations in Japan.
During the last fiscal year, Nissan only built 25 percent of its cars in Japan, compared with the 45 percent of Toyota. On the other hand, Honda Motor Co. only made 26 of its vehicles at home.
Moreover, Nissan transferred its production of its March compact vehicle in Japan to Thailand in July partly due to the yen's gain. In addition, Nissan imports the model to Japan.