Operating profit dropped 60% on-year to 244 billion won ($19.34 million), while sales shed 7.6% to 1.39 trillion won ($1.20 billion).
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“The immediate situation (in Chinese auto market) is tough and we can’t let our guard down”, said Nissan corporate vice president Joji Tagawa.
Nissan’s April-June net profit grew 36 percent to 152.80 billion yen as revenue rose 18 percent to 2.9 trillion yen.
“Nissan delivered solid financial results in the first three months of the fiscal year due primarily to strong demand for our core products in North America and Europe”, he said in a statement. Nissan faces slower growth in China, but steady demand in the U.S. for profitable light trucks helped offset slowing sales in China.
The Yokohama-based company said it sold 1.29 million vehicles during the period. Shares in Nissan have risen around 13% since the start of the year and closed at Y1,184 on Wednesday prior to the earnings announcement. The Insurance Institute for Highway Safety awarded the Murano a “Top Safety Pick Plus” vehicle safety rating, and the Sentra was named top Compact auto in the J.D.
Infiniti improved to the fifth position in the J.D. All Infiniti models performed above average in their respective segments, and the QX70 and QX80 were awarded top honors in their segments. “The sales momentum for Nissan’s big volume models will continue, particularly the Rogue”. This means that Nissan’s first quarter earnings reflect April-June results for all major regions except China, which is based on results from January-March – the first quarter in China’s financial year.
Nissan Motor Corp. reported Wednesday a record group net profit of ¥152.8 billion for the April-June quarter, up 36.3 percent from a year earlier, reflecting strong sales in North America and Europe and the weak yen. Total sales since launch of the all-electric LEAF have passed 180,000 units, and the company continued to expand its presence in electric commercial vehicles with the e-NV200.
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The firm left unchanged its annual forecasts for a net profit of ¥485.0 billion, operating profit of ¥675.0 billion and sales of ¥12.10 trillion.
