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148852
Fri, 11/05/2010 - 10:37
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Strong sales in emerging markets boost Nissan earnings
YOKOHAMA, Nov. 4 (Kyodo) - Nissan Motor Co. said Thursday its group net profit in the April-September first half of fiscal 2010 expanded 23-fold from a year earlier to 208.38 billion yen as sales jumped 27.7 percent to 4.32 trillion yen on brisk demand
in emerging countries including China.
For the full 2010 business year, Nissan projects its group net profit to rise more than six-fold from the previous year to 270 billion yen, reflecting solid performance in the first six-month period and efforts to cut costs to offset the impact of a higher yen.
Japan's third-largest automaker now expects to see full-year sales of 8.77 trillion yen, up 16.7 percent from the previous year and up 7 percent from the previous forecast in May, backed mainly by continued strong demand in emerging
markets.
The company also said it will pay a 5-yen dividend per share for the seminannual period and is planning another 5 yen at the end of the current fiscal year, after passing on dividend payments in the last business year.
Nissan, which is 44 percent owned by France's Renault SA, aims to boost global
sales for the full year by 16.7 percent from the previous year to a record 4.10
million units, it said.
The automaker said its global sales, including those in Japan, surged 23.8
percent in the first six-month period to 2.01 million units, while sales in
Japan alone climbed 15.3 percent, thanks mainly to the government incentive,
and those in Asia jumped 49.9 percent. Sales in North America rose 11.8
percent.
Nissan said its sales in China grew 51.4 percent in January to June from a year
earlier to 503,000 units, boosted by sales of such models as Sylphy and Teana.
Although a strong yen continues to have a negative impact on the automaker's
profitability, ''Our portfolio is becoming increasingly diversified,'' said
Nissan Chief Operating Officer Toshiyuki Shiga. ''Our profits come from all the
regions where we do business.''
To tackle the yen's appreciation, the company is taking such measures as
procuring parts from overseas and increasing sales in Japan, Shiga told a press
conference in Yokohama.
Taking into account the recent rise in the yen against the U.S. dollar, Nissan revised its foreign exchange rate assumption to 80 yen to the dollar for the second half of fiscal year 2010 from 90 yen.
''We will reduce yen-based costs by optimizing production and cost effectiveness. We also aim to grow our yen-based revenues by increasing our domestic market share to 15 percent by the fiscal year 2013,'' Shiga added.
In the fiscal second half, Nissan plans to launch seven models including the Leaf electric vehicle in Japan, United States and Europe.
Nissan's upbeat earnings followed those of rival Honda Motor Co., which said last week its group net profit in the April-September period rose 563 percent from a year earlier to 408.42 billion yen.
Japan's top automaker Toyota Motor Corp. will release its fiscal first half earnings on Friday.
in emerging countries including China.
For the full 2010 business year, Nissan projects its group net profit to rise more than six-fold from the previous year to 270 billion yen, reflecting solid performance in the first six-month period and efforts to cut costs to offset the impact of a higher yen.
Japan's third-largest automaker now expects to see full-year sales of 8.77 trillion yen, up 16.7 percent from the previous year and up 7 percent from the previous forecast in May, backed mainly by continued strong demand in emerging
markets.
The company also said it will pay a 5-yen dividend per share for the seminannual period and is planning another 5 yen at the end of the current fiscal year, after passing on dividend payments in the last business year.
Nissan, which is 44 percent owned by France's Renault SA, aims to boost global
sales for the full year by 16.7 percent from the previous year to a record 4.10
million units, it said.
The automaker said its global sales, including those in Japan, surged 23.8
percent in the first six-month period to 2.01 million units, while sales in
Japan alone climbed 15.3 percent, thanks mainly to the government incentive,
and those in Asia jumped 49.9 percent. Sales in North America rose 11.8
percent.
Nissan said its sales in China grew 51.4 percent in January to June from a year
earlier to 503,000 units, boosted by sales of such models as Sylphy and Teana.
Although a strong yen continues to have a negative impact on the automaker's
profitability, ''Our portfolio is becoming increasingly diversified,'' said
Nissan Chief Operating Officer Toshiyuki Shiga. ''Our profits come from all the
regions where we do business.''
To tackle the yen's appreciation, the company is taking such measures as
procuring parts from overseas and increasing sales in Japan, Shiga told a press
conference in Yokohama.
Taking into account the recent rise in the yen against the U.S. dollar, Nissan revised its foreign exchange rate assumption to 80 yen to the dollar for the second half of fiscal year 2010 from 90 yen.
''We will reduce yen-based costs by optimizing production and cost effectiveness. We also aim to grow our yen-based revenues by increasing our domestic market share to 15 percent by the fiscal year 2013,'' Shiga added.
In the fiscal second half, Nissan plans to launch seven models including the Leaf electric vehicle in Japan, United States and Europe.
Nissan's upbeat earnings followed those of rival Honda Motor Co., which said last week its group net profit in the April-September period rose 563 percent from a year earlier to 408.42 billion yen.
Japan's top automaker Toyota Motor Corp. will release its fiscal first half earnings on Friday.
