According to its latest quarterly report, the operating profit of Nissan Motor Company for the said period rose 24 percent year-over-year, backed by cost-cutting efforts and the growing sales in North America. For the company's third fiscal quarter that ended on December 31, Nissan's global operating profit jumped from $1.29 billion last year to $1.60 billion.
Furthermore, its net income rallied 25 percent and was seen at $1.06 billion. At the same time, Nissan's revenue jumped 2.20 percent to $24.80 billion. Global retail sales added 1.70 percent for a total of 1.28 million units. The boost was generally backed by the hefty sales in North America and Asia.
For the period, sales in North America inched up 12 percent to 485,000 units, making the region Nissan's largest market. Nissan joins the wide array of car makers taking advantage of low oil prices, enhanced labor market, and cheap credit as a record number of Americans acquired new vehicles in 2015.
The gain in Nissan's sales outperformed some of its biggest rivals, Toyota Motor Company and Honda Motor Company, for the third consecutive year. The Rogue crossover led the boost in sales, jumping by 44 percent— the largest gain among leading vehicles. Tokai Tokyo Research Center analyst Seiji Sugiura claimed that the North American market is the "driving force" of Nissan's growth.
In Asia, Nissan's sales sought a total gain of 5.70 percent to 365,000 units. The gain in emerging markets helped offset the 5.70 percent decline in China, which is suffering from an economic slowdown. Japan sales also dropped. Meanwhile, in Europe, sales were down despite the upbeat figures in Western Europe as the slump in Russia weighed it down.
Aside from the sales growth, the quarterly results can also be attributed to Nissan's cost-cutting efforts due to low raw material costs. The company's cost-cutting efforts made up $445.68 million of its operating profit for the quarter.
However, foreign exchange rates had a negative impact on Nissan's profits after injecting gains into the car maker over the past few quarters. The exchange rate for USD/JPY was not enough to make up for the losses incurred from other strong currencies such as the Canadian dollar, the Russian ruble, the Australian dollar, and the Mexican peso.
On the other hand, Nissan maintained its projections for the current fiscal year ending on March 31. The company forecasts to sell 5.50 million units around the world for the fiscal year, which is seven percent greater than last year's 5.14 million units.
Revenue is also expected to gain 7.70 percent to $101.66 billion. Furthermore, Nissan estimates that the full-year operating profit will jump 24 percent to $6.06 billion. Meanwhile, net income for the fiscal year is expected to advance 17 percent to $4.44 billion.