JAPAN: Earthquake affects Nissan fiscal Q1 profits
Nissan Motor operating profit fell 10.4% year on year to JPY150.4bn(US$1.84bn, EUR1.28bn) in the first quarter of fiscal year 2011/12.
Sales rose 1.6% to JPY2.082 trillion as higher volume overseas more than offset a 14.7% plunge in domestic sales in the wake of the 11 March earthquake/tsunami disaster in Japan.
Net profit dipped 20.3% to JPY85.02bn yen, affected mainly by the strong yen and rising material costs.
That was after booking a JPY21.1bn special loss releated to the earthquake though the negative impact of the disaster has now eased, the automaker told Kyodo News.
"Our rapid recovery from the natural disasters in March once again shows the power of Nissan in responding effectively and decisively to crisis," said president and CEO, Carlos Ghosn in a statement.
Global unit volume rose 10.6% to 1,056,000 vehicles in the first quarter.
''Our first quarter results underscore that we have made a good start with sure-footedness and that we have achieved a full recovery,'' corporate vice president Joji Tagawa told a news conference in Yokohama.
Nissan left unchanged its earnings outlook for the full fiscal year to the end of next March, forecasting group net profit of JPY270bn, operating profit of JPY460bn and sales of JPY9.4 trillion.
Its global output plunged 22.4% in April due to supply chain disruptions following the disaster but the automaker managed to raise output by 19.3% in May and 18.5% in June, Kyodo noted.
The strong yen, and rising material and energy costs pushed down its operating profit by JPY55bn and JPY32.4bn, respectively, Nissan said.