Nissan reported a 19.7% decline in its quarterly operating profit

Article by Christian A., on July 27, 2012

Amid the impact of the strengthening yen, Nissan reported a 19.7% decline in its quarterly operating profit. It had solid sales worldwide but this failed to offset the yen. For the April-June period, Nissan had an operating profit of 120.7 billion yen ($1.5 billion, 1.2 billion euros).

This is lower than the average estimate from six analysts surveyed by Reuters of 142.5 billion yen. It posted a net profit of 72.3 billion yen, 15% lower than the 85 billion yen posted during the same period one year ago. It’s likely that Nissan, which is 43% owned by Renault, will underperform Toyota and Honda since its newest figures will be put side by side with strong year-earlier results.

Nissan recovered faster than other Japanese automakers from the supply interruptions that came after the natural disaster in Japan in March 2011.

Toyota, which is scheduled to file a report on Aug. 3, is believed to swing to a net profit of 243 billion yen from reporting a loss of 80 billion yen the previous year. Honda, which is the No. 3 automaker in Japan, will probably post a net profit of 144.8 billion yen, almost five times the result for the previous year. It is set to report on July 31.

Nissan said that its earnings fell due to a strong yen. Japan exporters have been complaining about the steady increase in the yen’s value as it lessens their competitiveness against its rivals, such as those from South Korea. The yen also reduces its income overseas when converted into yen.

On Thursday, the yen increased to 78.14 per dollar from over 83 in the middle of March, a 6.2% increase. In the three months to June, Nissan was able to sell 1.2 million vehicles worldwide, about 15.9% higher than the figure posted during the same period the past year. Last May, Nissan said that it has estimated that it will sell 5.4 million vehicles globally in the year to March 2013, higher by 10.4% from the prior year.

Topics: nissan, profit

If you liked the article, share on:

Pin It

Comments

Recommended

The German automaker Volkswagen is now racing against time to come up with electric vehicles that will be able to pass Europe and China's stringent emission standard. The car company...
by - March 22, 2017
In the last few years, the advent of compact sedans and crossovers has become quite overwhelming. Even two of the major manufacturers that “started it all” have to admit that...
by - March 22, 2017
By 2020, Audi will be throwing out not just one but three fully-electric vehicles. One of which will be pitted against the BMW i8. This new information was revealed by...
by - March 22, 2017
Tesla confirms that they will be discontinuing the fairly new Model S 60 and 60D sedans as soon as next month. Why, you ask? The company wants to make enough...
by - March 22, 2017
Have you ever wondered how much luxury car companies profit from every vehicle they sell? And which companies profit more? Well, in 2016, Porsche sold over 238,000 vehicles. That is...
by - March 22, 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