Yokohama, Japan-based Nissan Motor Co. reported Monday a fiscal second quarter profit of 172.8 billion yen ($1.4 billion), up from 124.9 billion yen the year before.
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Japan’s second-largest automaker said that it had revised upwards its operating profit outlook to 730 billion yen (6.05 billion USA dollars) from 675 billion yen previously, on sales of 12.25 trillion yen, up from 12.10 trillion yen in previous projections.
And Toyota could raise its full-year profit forecast, heading to a third straight record, the Journal reported.
It also raised it revenue forecast for the full year after net revenue rose 13.2 per cent to 3.03 trillion yen in the July-September period due to strong demand for its vehicles in North America and improving sales in Western Europe.
The profit forecast by the company is also up from its May’s forecast of about 485 billion yen.
Nissan is benefiting from a robust US market that registered the fastest pace of sales growth in more than a decade, offsetting weak demand both at home and in China.
Nissan expects to sell 5.5 million vehicles for the fiscal year, up 3.4 percent from the previous year. “But they can’t count on the USA forever because the market will peak out and their model mix will deteriorate”.
Nissan has outperformed Renault, which earns a significant portion of its revenue from supplying engines and vehicles to its Japanese affiliate.
Earlier this year, the French economy minister maneuvered to increase the government’s stake in Renault to 20%, a purchase that allowed the government to apply a newly passed French law that doubles the voting rights of the state and other “long-term” investors.
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Renault owns 43.4 percent of Nissan, which in turn holds 15 percent of its partner. Honda reports fiscal second-quarter earnings on Wednesday and Toyota on Thursday.
