/

Nissan’s net profit surged 14% in April-June quarter

AFP-JIJI, Bloomberg

Nissan said Thursday its April-June net profit jumped 14 percent to $821 million, as it pointed to improved market share in Japan and North America.

Japan’s number-two automaker earned ¥82 billion on sales of ¥2.51 trillion in the second quarter, while leaving unchanged its forecast of a ¥420 billion net profit for the fiscal year to next March.

However, it saw an 3.3 percent year-on-year decline in sales to 1.17 million vehicles.

Nissan’s deliveries in the U.S. surged 25 percent in May, triple the industrywide increase, after cutting the prices on seven models, including its top-selling Altima sedan. The Japanese automaker has fixed a shortage of supply that hampered sales of five new models in the U.S. last year, the company said last month.

“Nissan’s sales performance in the U.S. has been robust,” said Issei Takahashi, a Tokyo-based auto analyst at Credit Suisse Group AG. “They have cut the retail price of models and the production problem has been solved. These should be the two reasons for the increase in volume.”

Nissan, part-owned by France’s Renault, also warned it had not fully recovered from the impact of a consumer boycott of Japan-brand goods in China.

The boycott came as a long-running diplomatic battle between Tokyo and Beijing over a chain of East China Sea islands flared anew last year.

  • JTCommentor

    For Abe’s plan to actully work, these big exporters need to now start flowing the benefits down to employees – the people who actually go out in Japan and consume, rather than hording profits away in bank accounts, as they have done in the past, or taking care of already rich equity holders. Wages need to increase across the board, otherwise Abe’s plan will increase hardships for ordinary Japanese, and start eroding the fairly small (comparative to other countries) divergance between rich and poor. Once the big companeis get on board, the smaller ones will have no choice but to also increase wages. Sadly, I am not confident this will happen.