Japanese car makers are expected to report robust fourth quarter earnings, with the exception of Nissan Motor, according to Reuters.
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The Japanese industry has benefited from strong sales around the world, and a low yen, and will benefit further this year thanks to some key new product launches.
Lack of new product at Nissan is the main factor behind an expected decline in operating profit there, according to Reuters Estimates, which surveys stock brokers. A number of key models will be renewed in the second half of this year, which means that Nissan is forecast to record the lowest growth this year, of 3.5%.
Honda’s profit is expected to fall in 2006/7, because its profits in 2005/6 will have been inflated by a one-off accounting gain related to pension funds. Without that, Honda’s profit would be up 5% as it launches three new crossovers in the US.
Toyota, Mazda and Suzuki are all expected to do well in coming months, although Reuters notes that a possible spanner in the works is the value of the yen, which has been described as artificially weak.
Toyota is expected to increase operating profits by 12% in 2006/7, Mazda is forecast to grow 8.7% and Suzuki 8.4%.
