JAPAN: Nissan lowers full year expectations
Although Nissan Motor reported small increases in operating and net profits for its second fiscal quarter to 30 September, it has revised its full year forecasts downward due to the "strong yen, disruption in China and deteriorating market conditions in Europe".
Second quarter net profit was JPY106bn (US$1.35bn, EUR1.08bn), up 7.7% year on year on sales up 5.5% to JPY2.4104 trillion ($30.67bn, EUR24.52bn).
Operating profit was up 4.4% to JPY166.4bn ($2.12bn, EUR1.69bn) and operating profit margin was 6.9% with no comparison provided.
Fird half sales rose 4.1% to JPY4.5468 trillion yen ($57.26bn, EUR45.24bn) and operating profit was JPY287bn ($3.61bn, EUR2.86bn) with operating profit margin of 6.3%, also without comparisons.
Net income fell 2.8% to JPY178.3bn yen ($2.25bn, EUR1.77bn).
"These results were achieved against a backdrop of unfavorable currency movements, deteriorating market conditions in Europe and signs of slowing growth in China," Nissan said.
In the first half, it sold 2.476m vehicles worldwide, up 11.3% year on year in an overall industry up 7.4%.
"Nissan has achieved positive results in a challenging operating environment impacted by the continued appreciation of the yen and particularly difficult economic conditions in Europe," said president and CEO Carlos Ghosn.
"Despite these near-term challenges, Nissan has responded decisively and remains on course to deliver profitable growth in its full-year performance."
After factoring in the projected negative impact of a strong yen, disruption in China and continuing weak market conditions in Europe, Nissan revised downward its full-year forecast for fiscal 2012 to sales of 9.815 trillion yen ($123.15bn, EUR96.41bn); operating profit of JPY575bn ($7.21bn, EUR5.65bn); and net income of JPY320bn ($4.02bn, EUR3.14bn).
FY12 full-year sales volume is now forecast to decrease from 5.35m units to 5.08m units, "mainly reflecting the volatile situation in China and Europe", the automaker added.