Operating profit at Japan’s second-largest automaker by sales came in at 175.8 billion yen, exceeding an average estimate of around 168 billion yen from nine analysts surveyed by Thomson Reuters I/B/E/S/.
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The Japanese automaker said net profit in the quarter was down almost 11% to 136.4 billion ($1.3 billion), while operating profit and revenue also slid from a year ago.
Nissan – which had been reporting bumper profits owing to upbeat sales in North America and China – was also hit by falling sales of minicars in Japan, produced by scandal-hit Mitsubishi Motors. Nissan deliveries at home were hit by the scandal with Mitsubishi supplied minicars being hit by a fuel economy testing scandal. Operating profit was 209.0 billion yen, resulting in a 7.2% operating profit margin. However, it says the figure increases by 38% to 267bn yen if the impact of currencies is excluded.
The company said it will book an extraordinary loss of 125.9 billion yen for the full business year as a result of the cheating.
Further, for the fiscal year ending March 31, 2017, the company continues to expect attributable net Income of 525.0 billion yen or $5.0 billion, operating profit of 710.0 billion yen or $6.8 billion and net revenue of 11.8 trillion yen or $112.4 billion.
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The UK’s vote to depart from the European Union isn’t “all bad” as a weaker pound is good for exports and the consequences from the step may take years to manifest, said Nissan’s Tagawa.
