Truck maker Nissan Diesel Motor has reported a 69% jump in half-year operating profit and expects to reward its shareholders with a dividend for the first time in years.
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Thanks to a 32% jump in overseas sales, Nissan Diesel, held 24% by Nissan Motor and 18% by Renault SA, said operating profit reached a record 19.18 billion yen ($182.3 million) in the six months to Sept. 30, Reuters reported. Net profit was also a record, at 16.50 billion yen compared with a loss of 9.65 billion yen in the year-earlier period.
The report said revenue inched up 0.3% to 226.71 billion yen as stronger sales to Nissan Motor and surging demand for its trucks in South Africa, Indonesia, Malaysia and other markets made up for a sales fall in Japan, China and Thailand.
Reuters noted that the operating profit, however, fell 8 billion yen short of Nissan Diesel’s latest forecast announced last month for 20 billion yen after the truck maker announced a recall of over 30,000 trucks last week to fix defective front wheel hubs. But half-year net profit was slightly better than the 16.1 billion yen forecast a month ago as sales exceeded its latest estimates.
Its operating profit margin reportedly improved to 8.5% in the first half, against its aim under a five-year plan to raise it to over 4% this business year. Interest-bearing debt fell to 174.8 billion yen from 262.6 billion at the end of March.
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By GlobalDataNissan Diesel, which received 106 billion yen in aid from its main banks and Nissan Motor a year ago, said it would pay a dividend of 3 yen per share this year, offering a dividend for the first time since it paid 1.5 yen in September 1997, Reuters added.
