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Nissan sees $3.61 bln H1 profit; trims forecast

Nov. 6 – Yokohama – Nissan announced first half financial results Tuesday, posting an operating profit of 287 billion yen, or $3.61 billion, down 7.3% from the same period last year.

Chief Operating Officer Toshiyuki Shiga said the latest figures were positive, considering the challenging period for the company.

“Nissan has delivered solid results in the first half despite the continued appreciation of the yen, volatility of the macro-economy and particularly difficult conditions in Europe,” said Shiga. “The operating margin was still respectable at 6.3%.”

Japan’s No. 2 carmaker by sales revised down its operating profit forecast for the full year 18%, factoring in impact of the yen and Europe, as well as a disruption of sales in China.

Demand has slumped in the world’s biggest auto market as Chinese consumers shunned Japanese cars amid a territorial row over the Senkaku, or Diaoyu, Islands.

Honda cut its annual profit forecast 16%, citing weak sales in China, while Toyota raised its full-year profit forecast to $13.1  billion on expectations of strong performances in North America, Thailand and Indonesia that would help offset Beijing.

“When you take a look at the Chinese market, showroom traffic on a weekly basis for Nissan local dealers has recovered to about 80% of pre-crisis levels,” said Shiga. “In terms of actual orders, at the end of this month, we have seen an improvement to around 70%.”

Nissan recorded growth in global vehicle sales in the first half of 11.3%, outperforming overall industry volumes, but the automaker trimmed it full-year volume forecast to 5.08 million from 5.35 million, to reflect the volatile economic environment.

With new models set to launch in the latter half of the year and as near-term challenges subside, the COO said Nissan remains on track to deliver profitable growth for the full year.


To watch Nissan Motor Co.’s press conference in full please click here.

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