Nissan Motor boosted operating profit 13.4% to JPY122.6bn for the first quarter of the 2014/15 fiscal year, a 5% margin on net revenues that climbed 10.4% to JPY2.47 trillion for the period.
Net income rose 36.7% to JPY112.1bn.
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The operating result exceeding the JPY109.1bn mean estimate of 12 analysts polled by Thomson Reuters I/B/E/S.
Last financial year, Nissan posted a 4.8% operating profit margin, the worst among its Japanese peers, squeezed by the cost of a rapid expansion drive aimed at lifting its global market share, Reuters noted.
“Nissan continued to make progress in the first three months of the fiscal year as encouraging demand for new products, benefits from recent plant investments, and improving market conditions in North America, China and Europe combined to lift both revenues and profits,” president and CEO Carlos Ghosn said in a statement.
“Nissan is well placed to deliver on its outlook given our continued product offensive along with measures to enhance competitiveness, build market share and the ongoing benefits of our alliance strategy.”
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By GlobalDataThe automaker said the improvement reflected particularly strong unit sales growth in the US and China, up 14.1% and 21.1% respectively. The company also benefited from rising demand for products including the Qashqai, Rogue and X-Trail, all on the common module family underpinnings developed within the Renault-Nissan Alliance.
During the first quarter Nissan sold 1,240,000 vehicles globally, a 6% rise year on year.
Nissan expanded its electric vehicle activity with the June launch of the e-NV200 van.
Outlook
Nissan reaffirmed its global sales forecast for fiscal 2014. The company expects to sell 5.65m units this fiscal year, up 8.9%. New plant capacity will come on stream in markets such as Mexico and Brazil.
Full fiscal guidance remains net revenue JPY10.79 trillion ($107.9bn/EUR77.07bn), operating profit JPY535bn ($5.35bn/EUR3.82bn) and net income JPY405bn ($4.05bn/EUR2.89bn)
