Nissan Motor Co. disclosed that quarterly operating earnings dropped 4.6 percent to 159.3 billion yen or $2 billion for the period from July to September. The figure was better compared to the average forecast of 133 billion yen by 13 analysts surveyed in Reuters. The second-quarter net profit of the company was 98.4 billion yen, down 3.3 percent.
Nissan increased its worldwide sales estimates to 4.75 million vehicles for the financial year ending in March from the previous forecast of 4.6 million. The company also raised its forecast for its North Amercia sales to 1.35 million vehicles from 1.33 million.
For its sales in China, it also raised its sales forecast from 1.15 million to 1.25 million vehicles for the current financial year. The company is set to lead the race against competitors Honda Motor Co. and Toyota Motor Corp., which were adversely affected by the floods in Thailand and which have been sluggish in increasing sales in emerging markets.
Nissan was able to recover more quickly from a disruption in supply chain caused by the March 11 disasters in Japan because it had stocked up on components as preparation for the big boost in vehicle production.
Investors have also applauded the company's aggressive approach to grow in emerging markets like Russia and China, and to deal with currency losses by importing more components from other countries.
Currently, Nissan's sales are up by double-digit percentages in each key market except Japan. The company increased its yearly operating profit estimate to 510 billion yen for the year to March 31, 2012, from its initial estimate of 460 billion yen. The average forecast made by 25 analysts as surveyed by Thomson Reuters was 520 billion yen.