Nissan Q1 profit increased by 13.4% to ¥122.6 billion ($1.20 billion), beating most analysts’ expectations, as sales in its two largest markets – China and the United States – improved by 14.1% and 21.1% respectively. The company’s US management reshuffle appears to be paying off.
Nissan’s fiscal year is from April 1 to March 31, hence the April-June period is Q1.
In January, Jose Muñoz took over Nissan’s North American operations. His aim is to lift market share from its current 8.6% to 10%. Deliveries have outpaced Toyota and Honda in China and the US.
In Q1 2014, operating profit in North America was ¥51 billion, compared to ¥41.8 billion in Q1 2013.
Operating profit in Japan declined to ¥56.9 billion in Q1 2014 from ¥74.8 billion in Q1 2013. Domestic deliveries were down during the quarter after the April 1st consumption tax hike.
In Q1, sales worldwide increased by 6% to 1.14 million vehicles, and reached about 350,000 in the US and 283,000 in China.
Japan’s second-biggest automaker’s annual operating forecast remained unchanged at ¥535 billion for the financial year.
Carlos Ghosn, Nissan’s President and CEO, said:
“Nissan continued to make progress in the first three months of the fiscal year as encouraging demand for new products, benefits from recent plant investments, and improving market conditions in North America, China and Europe combined to lift both revenues and profits.”
“Nissan is well placed to deliver on its outlook given our continued product offensive along with measures to enhance competitiveness, build market share and the ongoing benefits of our Alliance strategy.”
(Data source: Nissan)
The world’s six largest automaker says it continues expanding its zero-emissions leadership. Since launching the all-electric Nissan LEAF, sales have exceeded 124,000 units, making it the best-selling electric vehicle in history.
In June 2014, the company launched the e-NV200, a zero-emission light commercial vehicle “which offers versatility and class-leading running costs.”
Nissan Fiscal Year 2014 Outlook
The global sales forecast for FY2014 remains unchanged. Sales are expected to increase by 8.9% to 5.65 million units.
The sales momentum will be fuelled by the introduction of new models, including the Nissan Qashqai and Rogue, Infinity Q50, and the Datsun GO.
Plant capacity will be increased in Mexico and Brazil.
Based on this sales outlook, the company maintained forecasts issued in May 2014 to the Tokyo Stock Exchange. The forecast showed (calculated under the equity accounting method for its China joint venture for the fiscal year ending March 31, 2015):
- Net Revenue: ¥10.79 trillion ($107.9 billion/€77.07 billion).
- Operating Profit: ¥535 billion ($5.53 billion/€3.82 billion).
- Ordinary Profit: ¥620 billion ($6.2 billion/€4.43 billion).
- Net Income: ¥405 billion ($4.05 billion/€2.89 billion).
In April, Nissan signed a Champions League deal with UEFA (Union of European Football Associations), one of the most prestigious and widely-watched tournaments in the world.