Japanese carmaker Nissan posted a net income of JPY82.7 billion ((US$1.07 billion or EUR790 million).for the fiscal third quarter ended Dec. 31, 2011, surpassing analyst estimates. This represents an increase of 3.2 percent over the results in the same period in 2010. According to the average estimate of seven analysts surveyed by Bloomberg News, Nissan was expected to post a JPY71.3 billion net income for the third quarter of the carmaker’s fiscal year.
The Japanese carmaker’s strong profits in its third fiscal quarter were largely attributed to its strong showing in China, where it posted an increase of 22 percent in sales in 2011. Nissan/Renault Chief Executive Officer Carlos Ghosn made a forecast in January that the automotive industry will have a record year due to growth in the United States, China and most developing countries.
During the third quarter, Nissan continued to progress its rollout of the zero-emission Leaf EV. In the calendar year 2011, Nissan sold over 22,000 Leafs around the world.
According to Nissan, it around sold 1.205 million vehicles around in the third fiscal quarter ended Dec. 31, 2011, for an increase of 19.5 percent compared to the previous year. The company also posted a growth of the 10 percent in the US, spearheaded by its Altima, Rogue and Quest models. In full calendar year 2011, Nissan saw its global sales soar by 14 percent to a record 4.67 million vehicles. The company’s China sales jumped 22 percent to 1.25 million unit in the calendar year 2011.
Net revenues at Nissan for the third fiscal quarter ended Dec. 31, 2011, were pegged at JPY2.331 trillion (US$30.12 billion, EUR2.35 billion), or around 10.9 percent higher than in the same period in the last fiscal year. Ordinary profit for the quarter was JPY121.5 billion (US$1.57 billion, EUR1.16 billion).
In the third fiscal quarter, Nissan saw its operating profit jump by 3.6 percent to JPY118.1 billion (US$1.53 billion, EUR1.13 billion), resulting to an operating profit margin of 5.1 percent.
With the strong third-quarter showing, Nissan maintained its earnings forecast for the fiscal year ending March 31, 2012 at JPY510 billion (US$6.38 billion, EUR4.56 billion) in operating profit and JPY290 billion (US $3.63 billion, EUR2.59 billion) in net income.
Mitsushige Akino, at Ichiyoshi Investment Management Co., said Nissan was barely affected by the natural disasters in 2011, and it is expected to continue growing this year. Akino remarked that the carmaker has the ability to flexibly adjust production in regions where demand is strong. “Even if it slows down in certain regions, it shouldn't be difficult for them to make it up elsewhere," Akino noted.