Nissan Reports First Profit Rise in Five Quarters (Update2)
Nissan Reports First Profit Rise in Five Quarters (Update2)
By Naoko Fujimura and Tetsuya Komatsu
Feb. 1 (Bloomberg) — Nissan Motor Co., Japan;s third-
largest carmaker, said profit rose for the first time in five
quarters after new models lured buyers in the U.S. and Europe.
Net income climbed 27 percent to 132.2 billion yen ($1.2
billion), or 32.27 yen a share, in the three months ended Dec.
31 from 104.5 billion yen, or 25.29, a year earlier, Nissan said
in a release today. Sales rose 18 percent to 2.77 trillion yen.
Both were in line with analyst estimates.
Chief Executive Officer Carlos Ghosn boosted overseas sales
28 percent in the quarter as the Qashqai and X-Trail sport-
utility vehicles won customers in Russia and the Middle East.
Nissan sold more fuel-efficient cars in the U.S., where record
gasoline prices led drivers to shun large SUVs and trucks from
Ford Motor Co. and General Motors Corp.
“Ghosn is winning back investors; confidence,;; said
Ichiro Takamatsu, who helps manage about $60 million, including
auto shares, as chief investment officer at Tokyo-based Alphex
Investments Co. “New models are stoking the engine.;;
Nissan;s shares rose 6.9 percent in the quarter, compared
with a 10.9 percent decline for Toyota Motor Corp. and a 2.9
percent drop for Honda Motor Co. Nissan fell 0.7 percent to
1,006 yen at the close of trading on the Tokyo stock exchange
today, before the earnings were released.
Nissan, based in Tokyo, expects full-year net income to
rise 4.2 percent to 480 billion yen, it reiterated today. Sales
may fall 1.6 percent to 10.3 trillion yen in the year ending
March 31 because of accounting changes.
New Models
The carmaker brought out nine new or revamped models in the
nine months ended December, including the X-Trail, the Infiniti
G37 Coupe and the GT-R sports car.
“Nissan has benefited from the success of the new products
launched during the past 12 months,;; Ghosn, 53, said in the
statement.
Honda, Japan;s second-biggest automaker, yesterday reported
net income rose 38 percent in the third quarter, spurring it to
raise its full-year profit forecast. Toyota, the country;s
largest carmaker, is due to report its earnings on Feb. 5.
Nissan;s operating profit, or sales minus the cost of goods
sold and selling, general and administrative expenses, rose 16
percent to 211.9 billion yen in the third quarter, it said.
Russia, U.K.
Drivers in Europe bought 148,000 Nissan vehicles, an
increase of 13 percent. The automaker sold 100,000 Qashqai SUVs
in the region within nine months of its March debut. The
carmaker also boosted sales in Russia 60 percent last year, as
the country surpassed the U.K. as its biggest European market.
In the U.S., demand for Nissan;s vehicles climbed 5.1
percent to 255,000, as the company won customers in a shrinking
market. Overall, Japanese automakers won a record 36.9 percent
share of the U.S. auto market last year. GM and Ford lost
customers in the country as they shut plants and fired workers.
Nissan;s global third-quarter vehicle sales rose 13 percent
to 898,000. Sales in Japan dropped 0.9 percent to 147,000. It
has jointly developed platforms for new models such as the X-
Trail with Renault SA, which owns 44 percent of Nissan, to cut
research and production costs.
To contact the reporters on this story:
Naoko Fujimura in Tokyo at
