Profits at Nissan dipped 14% in the first fiscal quarter compared to the same period a year ago as it wrote down the value of its assets to accommodate new Japanese accounting rules, the Associated Press (AP) reported.
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Nissan Motor on Tuesday reportedly said that group net profit for the three months ending June 30 totaled 105.70 billion yen, or $US949 million, down from 123.23 billion yen the previous year. A charge for a new pension plan also eroded earnings, which had otherwise showed solid growth in operating profit.
AP said sales during the April-June period jumped 13% to 2.145 trillion yen, or $19.3 billion, from 1.905 trillion yen the same period a year ago.
Nissan reported brisk sales in the US and Japan during the quarter – Altima sedan sales jumped 29% and sales of the Pathfinder sport utility vehicle nearly doubled in the United States.
In Japan, compact models such as the Tiida and Note as well as larger models such as the Murano sport utility vehicle and Fuga luxury sedan supported sales growth, AP added.
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By GlobalDataThe report said Nissan kept its forecast for a sixth straight year of record profit for the full fiscal year through March 2006 and is expecting 517 billion yen ($4.6 billion) net profit for the fiscal year ending March 31, 2006, on 9 trillion yen ($80.8 billion) sales.
During the first fiscal quarter, Nissan sold 879,000 vehicles worldwide, up 14% from last year. This fiscal year, Nissan will be releasing six new models, including the Serena minivan, the Associated Press added.
