Nissan Motor, the Japanese automaker, announced on Wednesday that its net profit for the first quarter of the fiscal year has more than doubled compared to the previous year. The impressive results were primarily driven by increased earnings from its North America business. As a result, Nissan has also raised its full-year profit guidance.
For the quarter ended on June 30, net profit soared to 105.475 billion yen ($748.5 million), whereas it stood at Y47.11 billion in the same period last year. These figures surpassed the estimate of Y79.23 billion predicted by a FactSet analyst poll.
In terms of revenue, Nissan experienced a significant boost of 37% from the previous year’s first quarter, amounting to Y2.918 trillion. Additionally, operating profit for North America witnessed a remarkable surge of 72%, reaching Y132.05 billion.
While Nissan adjusted its car sales forecast for the fiscal year ending in March 2024, reducing it from 4.0 million units to 3.70 million units, the company remains optimistic about its prospects. This revision is mainly due to the revised estimate for sales in China, which has been reduced from 1.13 million units to 800,000 units.
However, despite this adjustment, Nissan has increased its revenue and net-profit forecasts for the current fiscal year. The company attributes this positive outlook to effective cost control measures and the impact of a weaker yen. Nissan now expects its revenue to rise by 19% to Y12.600 trillion, up from the previous forecast of a 17% increase. Similarly, it anticipates a 53% rise in net profit to Y340.00 billion, surpassing the previous prediction of a 42% increase.
In conclusion, Nissan Motor has exhibited a robust performance in the first quarter, achieving substantial growth in net profit and revenue. With its revised sales forecast and improved profit guidance, the company is poised for further success in the coming months.