Nissan yesterday raised its full-year forecasts, citing new model rollouts along with upbeat sales in North America and Europe that offset weakness in the home market.
The Altima sedan maker said it would post a record net profit of ¥535bn ($4.5bn) in the fiscal year to March 2016, up about 17% from the year-earlier result, while operating profit and sales would also come in higher than forecast.
The boost came as the automaker reported that its latest six-month sales and profit figures jumped from last year, as it also pointed to the benefit of a weak yen and cost-cutting.
Nissan sold 2.62mn vehicles globally in the six months to September, ticking up 1.3%. Its half-year profit jumped 37% to ¥325.6bn.
“Strong demand for new products in North America and Western Europe, combined with the benefits of continued cost discipline and the yen correction against the US dollar, offset declining market conditions in Japan and several emerging markets,” it said. Japanese automakers have benefited significantly from healthy growth seen in the US market with low interest rates, while the weaker yen has made them relatively more competitive overseas and inflated the value of repatriated overseas profits.
Sales have been sluggish in their home market, however, after a sales tax rise last year dented consumer spending and as younger urban residents delayed buying a vehicle.
Unit sales in China, the world’s biggest vehicle market, rose 5.7% in the last half-year period, although the company said it struggled in the light commercial vehicle business.