July 26, 2012
Nissan posts $1.5 bln Q1 operating profit, vehicle sales climb
July 26 – Yokohama – Nissan announced financial results Thursday, posting an operating profit of 120.7 billion yen, or about $1.5 billion, in the first quarter, as vehicle sales climbed 14.6% to 1.21 million.
Despite the strength of the yen and continued economic uncertainty in Europe, Joji Tagawa, corporate vice president with responsibility for investor relations, says Nissan remains confident of hitting its full-year operating profit target of 700 billion yen.
“Given the results are in line with what we have forecast before, from now the important thing for us is to execute what we plan to do based on our forecast and our mid-term plan,” Tagawa said.
Japan and North America were among the markets where sales outperformed during the quarter, rising 19.5% and 15.1%, respectively, while China also posted double-digit growth.
In Europe, where the economic crisis depressed industry-wide sales, Nissan’s market share edged up 0.1 of a percentage point to 3.5%, aided by Juke and Qashqai crossover sales.
Looking ahead, Tagawa says a raft of new models should boost the bottom line this year, offsetting the challenging economic environment.
“The new Altima in the United States was just launched at the end of the first quarter. Note, the third V-platform vehicle, was just announced and starts selling in September from Japan. Sylphy just launched in China, and again in North America the Pathfinder and Sentra are coming in the later half of the year,” Tagawa said. “I expect both a recovery and increase in sales as well as an improvement in profitability.”
Total sales are projected to reach a record 5.4 million vehicles during the current financial year, while Nissan remains on track to meet its twin targets of 8% global market share and operating profit by fiscal 2016.
To watch the full briefing in English or Japanese: