Nissan’s quarterly profit falls 13 percent

Article by Christian Andrei, on May 15, 2015

Nissan Motor Co. posted a 13% decrease of its operating profit in the January-March fiscal fourth quarter as favorable exchange rate and strong sales in North America were unable to offset the declining sales in major markets like Japan and China. In the latest quarter, Nissan’s operating profit fell to 171.6 billion yen ($1.43 billion) from the previous year’s 197.7 billion yen ($1.65 billion).

The automaker also said that its net income went up by 3.3% to 118.8 billion yen ($993.1 million). Its global revenue climbed 2.6% to 3.29 trillion yen ($27.50 billion) even as global sales fell by 2.1% to 1.48 million vehicles in the quarter. Quarterly profits took a dive as sales in key markets fell and as the automaker incurred high costs to launch a new product in North America.

The automaker’s operating profit in North America dropped by 23% to 79.9 billion yen ($166.3 million) during this period, as Nissan increased its production of the Murano crossover and as it made preparations for the Maxima sedan. Meanwhile, its regional sales increased to 1.65 million units – a 12% jump. In Japan, its quarterly sales decreased by 19%.

In China, it had a 10% drop. However, Nissan was still able to rack up improvements in earnings across the board for the full year. Japanese automakers benefited from the rising demand in North America and the depreciating yen, which is good for exports and increases the yen-denominated value of overseas earnings.

According to Nissan CEO Carlos Ghosn, the restraint with the incentives in the U.S. and the strong sales of models like the Rogue crossover contributed to the 54% annual increase in the operating profit in North America. It also boosted sales in this market by 12% to 1.65 million units.

At Nissan’s earnings announcement, Ghosn declared that it had record sales in North America and that its strong performance was mainly influenced by its core models; namely: the Altima, Rogue and Sentra.

He also said that results for the full year received an additional boost from the foreign exchange rate windfalls that added 68.6 billion yen ($573.4 million) for the entire fiscal year that ends March 31, 2015.

Nissan posted an 18% increase of its twelve-month operating profit to 589.6 billion yen ($4.93 billion). Meanwhile, its global net income rose 18% to 457.6 billion yen ($3.83 billion). Global revenue climbed 8.5% to 11.38 trillion yen ($95.13 billion).

Global retail sales for the fiscal year went up 2.5% to 5.32 million vehicles. In these twelve months, volume in Europe increased by 12% to 755,000 vehicles. The automaker was able to post a 5.1% sales increase in Russia with 173,000 units sold even as the demand in the car market has fallen.

Topics: nissan, profit

If you liked the article, share on:


Login or Create new account to add a comment!


Mitsubishi is now officially part of the Renault-Nissan alliance after Nissan took over the Japanese car company recently. We know a lot has been happening in the car industry, but...
by - October 24, 2016
Driving the newest 2017 BMW 5-Series (G30), Clive Owen (Closer, Children of Men) returns to his role as “The Driver”. In this latest installment, what initially starts as a simple...
by - October 24, 2016
Many had wished that a Lamborghini Huracán Superleggera would somehow make a surprise debut at the recently held Paris Motor Show. Sadly, not a single Lamborghini appeared anywhere in sight....
by - October 24, 2016
Aston Martin and Red Bull Racing teamed up for the first time in creating what looks like one of the most ferocious beasts in history. The British car manufacturer has...
by - October 24, 2016
German premium carmaker Audi is reportedly planning to buy back around 25,000 Audi Q7 SUVs powered by its 3.0-liter V6 TDI engine in the United States. The buyback should compensate...
by - October 24, 2016