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CHINA: Nissan to return to profitability in current year

By just-auto.com editorial team | 12 November 2009

Carlos Ghosn has reiterated that he believes strong growth in emerging markets such as China will help Nissan return to profitability in the current financial year.

Nissan revised its annual outlook last week to a profit from a loss on the back of higher sales in China.

"Our results are improving. Hopefully the momentum will continue into 2010," Ghosn told Reuters.

Nissan saw Chinese sales up by one-fifth year-on-year in September, helped by Beijing's tax incentives for smaller cars. It now expects to sell 3.3m vehicles globally in the year to March, raising its forecast by 7%.

Nissan is forecasting an operating profit of JPY120bn (US$1.3 billion) in the year to March, instead of the JPY100bn loss it had forecast previously.

Earnings made in China are counted in Nissan's operating profits, unlike those at Toyota and Honda which report under US accounting rules.

Nissan also revised its net loss forecast to JPY40bn from a loss of JPY170bn.

See also:
JAPAN: Nissan swings to profit on higher sales