Nissan Enjoys Strong Quarterly Earnings

Japanese maker seeing strong sales in U.S., China and Mexico.

by on Jul.29, 2016

Nissan Corporate Vice President Joji Tarawa spells out the maker's quarterly results.

Nissan Motor Co., Ltd. enjoyed a profitable second quarter for this year with operating profit up more than 35% due to strong demand for its crossovers and sporty sedans in the United States, officials said.

During the three months ending June 30, global total industry volumes – or TIV – reached 22.79 million units, an increase of 3.5%, the company reported. In the U.S., Nissan’s sales rose by 7.9% to 398,000 units, equivalent to a market share of 8.7%, amid strong demand for Altima, Rogue and the new Maxima.

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The company has performed well in China as well during the first half of 2016. Six-month sales performance in China, Nissan’s passenger vehicle sales increased 6.6% to 526,000 units.

In Mexico, Nissan maintained its number-one position with unit sales increasing 14.6% to 91,000 units, equivalent to a market share of 24.4%.

The Japanese maker’s operating profit was $1.6 billion (175.8 billion yen) for the period, representing a 6.6% margin on net revenues of $24.6 billion (2.65 trillion yen). On a constant currency basis, operating profit was 267 billion yen, up 37.8%.

“Nissan has delivered solid results in the first three months of the fiscal year despite recent currency headwinds and continued emerging-market volatility,” said Carlos Ghosn, president and chief executive officer in a statement.

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“Encouraging demand for core products, particularly in North America, and our continued focus on cost efficiencies contributed to an improved underlying performance, making us well placed to deliver our full-year net income guidance. This reflects our cost-discipline, on-going product offensive and the benefits of our Alliance strategy.”

On a management pro forma basis, which includes the proportionate consolidation of results from Nissan’s joint-venture operations in China, net revenue was 2.89 trillion yen. Operating profit was 209 billion yen, resulting in a 7.2% operating profit margin.

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Despite such positive results, Nissan only maintained its full-year forecast that it issued in May, including revenue of $112.4 billion, or 11.8 trillion yen, and an operating profit of $6.8 billion or 710 billion yen. The company’s net income is predicted to be $5 billion or 525 billion yen.

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