Strong Demand in U.S. and Europe Boost Profit at Nissan
Nissan Motor posted an operating profit for its fiscal third quarter that beat forecasts by 24% and kept its full year guidance for strong growth as its robust sales in Western Europe and North America offset an impact of weaker currencies across its emerging markets.
The second biggest automaker in Japan by sales posted a 192.5 billion yen or $1.68 billion operating profit for the quarter of October through December, which exceeded the forecast by analysts of 178.66 billion.
Nissan was able to overcome a hit of 26.8 billion from the yen during the quarter due to weakness in the Mexican peso as well as other currencies versus the dollar.
The carmaker announced that strong sales of its SUVs and pick ups across the U.S. and a buoyant demand within Europe enabled it to achieve a forecast made earlier for operating profit for the full year of over 730 billion yen, which is up 24% from its previous year.
Nissan kept its currency rate full year forecast unchanged at one U.S. dollar to 119.4 yen.
Facing booming demand for its cars across the U.S. but slumping domestic sales, Nissan is amongst a small number of automakers in Japan revving up its production idle plants in Japan to build vehicles it needs for export.
As production plants in North America churn out the popular Rouge model at a full capacity, Nissan has said its plant in the southern part of Japan would start producing its crossover vehicle for export to the U.S. during the spring or the early summer.
Nissan also has been producing its Rogues in South Korea as a way to boost its supply for the market in the U.S.
Other carmakers with larges production bases offshore are also moving manufacturing back to their home base taking advantage of the competitive costs of production and a weaker currency in general.