Nissan's first-half profits slide 22.5 per cent
Nissan Motor Co., Japan's third-largest automaker first-half net profit slumped by 22.5 per cent from a year earlier due to higher taxes and weak domestic sales.
By Agencies |
TOKYO: Nissan Motor Co., Japan's third-largest automaker, said Friday its first-half net profit slumped by 22.5 per cent from a year earlier due to higher taxes and weak domestic sales.
It was the fourth straight quarter of falling profits at Nissan, which was overtaken by rival Honda last year as Japan's second-largest automaker. Nissan, which is 44 per cent owned by France's Renault, posted net earnings of 212.4 billion yen ($1.86 billion) for the six months to September, down from $274.2 billion a year earlier.
But operating profit rose 5.3 per cent to 367.1 billion yen as sales climbed 11.7 per cent to 5.06 trillion, helped by brisk demand overseas and a weak yen. Nissan kept its forecast for an annual net profit of 480 billion yen, up 4.2 per cent from the previous year, when it reported the first drop in profits under its one-time saviour Carlos Ghosn, who now heads both Nissan and Renault.
Nissan said it had sold 1.816 million vehicles in the first half of its business year, up 6.3 per cent compared with a year earlier.
But domestic sales fell by 5.0 per cent as Japanese automakers battled it out in an increasingly tough home market due to a shrinking population and signs that people are less willing to spend money on new cars.
Ghosn, who said earlier this year that Nissan was in a "performance crisis," predicted that a series of new model launches would ensure the company enjoys an increase in annual profits.
"With many further exciting products to come, Nissan is back on track towards sustainable profitable growth and we maintain our full-year forecast," said Ghosn, who took the helm of the Japanese automaker in 1999.
Ghosn is credited with saving Nissan from near bankruptcy but has recently reduced the amount of time he spends running the Japanese company. In April 2005 he also took the helm of Renault and now shares his time before the two firms.
For the fiscal second quarter alone, Nissan's net profit tumbled 26.9 per cent from a year earlier to 120.1 billion yen.
But operating profit increased by 12.0 per cent to 218.7 billion yen on revenue of about 2.62 trillion yen, up 12.7 per cent.
It was the fourth straight quarter of falling profits at Nissan, which was overtaken by rival Honda last year as Japan's second-largest automaker. Nissan, which is 44 per cent owned by France's Renault, posted net earnings of 212.4 billion yen ($1.86 billion) for the six months to September, down from $274.2 billion a year earlier.
But operating profit rose 5.3 per cent to 367.1 billion yen as sales climbed 11.7 per cent to 5.06 trillion, helped by brisk demand overseas and a weak yen. Nissan kept its forecast for an annual net profit of 480 billion yen, up 4.2 per cent from the previous year, when it reported the first drop in profits under its one-time saviour Carlos Ghosn, who now heads both Nissan and Renault.
Nissan said it had sold 1.816 million vehicles in the first half of its business year, up 6.3 per cent compared with a year earlier.
But domestic sales fell by 5.0 per cent as Japanese automakers battled it out in an increasingly tough home market due to a shrinking population and signs that people are less willing to spend money on new cars.
Ghosn, who said earlier this year that Nissan was in a "performance crisis," predicted that a series of new model launches would ensure the company enjoys an increase in annual profits.
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"With many further exciting products to come, Nissan is back on track towards sustainable profitable growth and we maintain our full-year forecast," said Ghosn, who took the helm of the Japanese automaker in 1999.
Ghosn is credited with saving Nissan from near bankruptcy but has recently reduced the amount of time he spends running the Japanese company. In April 2005 he also took the helm of Renault and now shares his time before the two firms.
For the fiscal second quarter alone, Nissan's net profit tumbled 26.9 per cent from a year earlier to 120.1 billion yen.
But operating profit increased by 12.0 per cent to 218.7 billion yen on revenue of about 2.62 trillion yen, up 12.7 per cent.
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