Nissan Motor Co Ltd stated an increase in Q2 profit and overtook analysts expectations amid record sales in the United States which made up for slowing operations in China.
Nissan reported a slight increase in operating profit of ¥139.34 billion for the second business quarter, compared to last years result of ¥113.8 billion, beating the ¥130.67-billion projection of the 12 analysts polled by Thomson Reuters I/B/E/S.
Japans second-largest vehicle manufacturer said net income rose 15.8% compared to the second business quarter of 2013 and reached ¥124.9 billion.
In the quarter ended September 30, the weaker yen boosted Nissans performance but not as much as other Japan carmakers. The Yokohama-based company has a greater portion of overseas production and benefited the least from the yens decline.
In China Nissan suffered from decreasing sales in each month over the July-September period, but still managed to reach a 9.6% increase to 337 000 units compared to last fiscal years Q2. Overall net sales in Asia increased 6.5% to ¥420.9 billion.
However, the company changed its full-year sales target for China to 1.27 million units, down from the previous 1.4 million vehicles.
“Chinas general market slowdown, particularly in the light commercial vehicle segment hit the company” an executive said at an earnings briefing.
In the United States the company stated record second-quarter sales, up 13.4% to 359 000 units compared to the second business quarter of 2013. Nissan benefited from increased consumer spending and lower gasoline prices. Operating income for North America rose 95.1% to ¥83.3 billion.
In Europe the car manufacturer reported a 3.7% increase in sales to 163 000 units compared to 158 000 vehicles in 2013s Q2. Operating income was ¥3.3 billion below the zero mark, but still better than last year, when the company stated an operating loss of ¥9.9 million.
“Nissan successfully overcame challenging market conditions in the first half of the fiscal year, delivering solid revenues and profitability amid encouraging demand for our latest models,” Nissan CEO Carlos Ghosn said in a statement.
Nissan Motor Co Ltd gained 3.02% on Tuesday and closed at ¥1 028, marking a one-year increase of 6.97%. The company is valued at ¥4.51 trillion. According to the Financial Times, the 22 analysts offering 12-month price targets for Nissan Motor Co Ltd have a median target of ¥1 115, with a high estimate of ¥1 400 and a low estimate of ¥920.00. The median estimate represents a 8.46% increase from the last price of ¥1 028.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
