Nissan quarterly profit soars on year

Source:ap.org Author:YURI KAGEYAMA Date:03/25/14 Click:

TOKYO - Nissan reported a 26.6 percent jump in October-December profit Friday and kept its full year forecasts despite looming worries about a U.S. slowdown and an unfavorably strong yen.

Profit at Nissan Motor Co., which has an alliance with Renault SA of France, rose to 132.22 billion yen ($1.24 billion) for the fiscal third quarter from 104.46 billion yen the same period the previous year.

Quarterly sales climbed 18.2 percent to 2.770 trillion yen ($26.03 billion) from 2.343 trillion yen, partly boosted by brisk sales of the Rogue crossover vehicle in the U.S.

Earnings at Japan's No. 3 automaker, which also makes the Z sportscar, Altima coupe and Infiniti luxury models, could be endangered in coming months amid worries about slower American consumer spending.

Also, a weaker dollar, which has dropped recently to about 106 yen from 114 yen last year, eats into the revenue from U.S. exports for the Japanese.

But so far demand for Nissan vehicles has remained strong in the U.S. and in emerging markets such as the Middle East, China and Russia. Even in the domestic Japanese market, the company boosted its market share, it said.

"Despite the headwinds that affect our industry, Nissan has benefited from the success of the new products launched during the past 12 months," said Nissan Chief Executive Carlos Ghosn, who also heads Renault.

Nissan sold 898,000 vehicles worldwide in the quarter ended Dec. 31, up 13 percent from the same period a year earlier. American sales accounted for 255,000 vehicles, or 28 percent.

Nissan kept unchanged its profit forecast for the full fiscal year through March at 480 billion yen ($4.5 billion).

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