Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

Nissan Motor Co., Japans second-biggest car manufacturer, posted Q2 earnings today, revealing a sizable increase for both revenue and profit, boosted by rising sales in the US and China.

Nissan, whose assets are valued at about $144 billion, said its net profit for Q2 of 2014 was up 37% on an annual basis at $1.1 billion, while revenue rose 11% to about $25 billion, with worldwide sales rising 6% to 1.24 million units.

Sales in Asia added 19.1%, while North America saw a 10.4% increase, 14.1% in the US, boosted by a weakened yen. Domestic sales, however, were down 2.7%, weighed on by a higher sales tax, which was increased from 5% to 8% earlier this year.

“Nissan is well placed to deliver on its outlook given our continued offensive along with measures to enhance competitiveness, build market share and the ongoing benefits of our alliance strategy,” Renault-Nissan Alliance CEO Carlos Ghosn said in a statement. As of 2013, Renault holds a 43.4% voting stake in Nissan, while Nissan holds a 15% non-voting stake in Renault. Mr Ghosn serves as CEO for both companies.

Nissan also reaffirmed its annual operating profit forecast of 535 billion yen ($5.3 billion) for the financial year ending in March 2015, while revenue is projected to rise 3% to 10.79 trillion yen ($100.59 billion), with a global market share of 6.7%.

The report comes after last week Nissan announced it is recalling 226 000 more vehicles, in relation with a defective airbag, including models of Infiniti, Maxima, Pathfinder and Sentra for the years 2002 to 2004. Brian Brockman, spokesman for Nissan, said the company isnt aware of any accidents or injuries related to the recall. The recall is expected to begin 11 August.

Meanwhile, Nissan announced the strengthening of another strategic partnership last week, revealing a joint venture with Daimler in Mexico. A manufacturing plant with an output capacity of about 300 000 Mercedes-Benz and Infiniti compact cars will open by 2017, in a move which Daimler CEO Dieter Zetsche said would “take [this] successful partnership to the next level”. Daimler has been in a partnership with Renault and Nissan since 2010.

Before the earnings report was posted, Nissan Motor Co. was up 0.82% as trading in Japan closed on Monday, for a share price of 1 001.5 yen, or about $9.83. The price was 8.71% lower than a year ago. According to the Financial Times, 22 analysts offering 12 month price targets for Nissan Motor Co Ltd have a median target of 1 050 yen, with a high estimate of 1 300 yen and a low estimate of 970 yen. The median estimate represents a 4.62% increase from the last price of 993.40 yen.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Forex Market: GBP/USD daily trading outlookForex Market: GBP/USD daily trading outlook Yesterday’s trade saw GBP/USD within the range of 1.4447-1.4527. The pair closed at 1.4463, shedding 0.27% compared to Wednesdays close. It has been the 32nd drop in the past 55 trading days and also a second consecutive one. The daily low has […]
  • Optex Systems purchases Speedtracker from RUBOptex Systems purchases Speedtracker from RUB Optex Systems Holdings Inc, a leading manufacturer of precision optical sighting systems for military and commercial applications, said on Monday it had acquired Speedtracker from RUB Aluminum.The company has also established a […]
  • Gold remains steady on MondayGold remains steady on Monday Gold prices remained overall unchanged in the early European session, awaiting Feds meeting this week, which would shed some light into the centrals bank s future intentions regarding its Quantitative Easing. Gold prices rose on Friday, […]
  • NZD/USD fell due to a drop in Asian equitiesNZD/USD fell due to a drop in Asian equities New Zealand’s dollar retreated against its US counterpart on Tuesday, heading for the biggest drop this month, after hitting the highest level in four months last week, because the drop in Asian shares triggered risk aversion.NZD/USD fell […]
  • USD/CHF on over one-month lowsUSD/CHF on over one-month lows US dollar tumbled to more than one-month lows against the Swiss franc on Wednesday, as the Swissie found support after the release of positive data out of Switzerland, regarding the KOF Leading Indicator.USD/CHF fell to 0.9252 at 8:38 GMT, […]
  • US stocks surge as investors wait for Bernanke to set directionUS stocks surge as investors wait for Bernanke to set direction US stocks map was all green yesterday with the S&P 500 offset last week decline. Investors still wait for more clarity on the subject of reducing bond purchasing program. It is expected from Fed’s Chairman, Ben Bernanke, to make a […]