Japan’s second-largest automaker, Nissan Motor Co., said that it expects net income of JPY315 billion ($3.8 billion) in the year ending March 31, 2011, compared with an earlier forecast of JPY270 billion. The company raised its profit forecast after new models and increasing sales in Asia and North America helped the company offset the impact of the strong yen.
Nissan follows Honda Motor Co. and Toyota Motor Corp. in raising its profit outlook even as the yen trades near a 15-year high against the dollar, reducing the value of overseas earnings.
Nissan is benefitting from new models like the Juke, Micra and March compacts and the drop in purchasing costs. Issei Takahashi, an analyst at Credit Suisse Securities Japan Ltd., said that Nissan's solid growth comes from introducing new models globally.
For the three months that ended Dec. 31, 2010, Nissan's net income rose 78 percent to JPY80.1 billion ($971.5 million) from JPY45 billion a year earlier.
That was higher than the JPY77.3 billion average estimate of five analysts compiled by Bloomberg in the past 28 days. Revenue increased 5.3 percent to JPY2.1 trillion while vehicle sales gained 14 percent to 1.01 million.
The company expects to sell 4.165 million vehicles in the year ending March 31, 2011, up from an earlier forecast of 4.1 million. [via autonews - sub. required]