Nissan logs profit drops in April-June quarter

TOKYO: Nissan reported a drop in quarterly net profit, hit by higher costs and weak sales in key markets, although it left its annual forecasts unchanged.

The Yokohama-based company said for the April-June quarter net profit edged down 1.1 per cent on-year to 134.9 billion yen ($1.2 billion) while operating profit fell 12.8 per cent to 153.3 billion yen.

The maker of the Altima sedan said in a statement that it was hit by “rising raw material costs, adverse foreign exchange impacts, and slower than anticipated growth in key markets”.

It did not elaborate on the foreign exchange situation, though with factories around the world and in Japan it is exposed to risks in a number of currencies. Sales rose 4.0 per cent to 2.76 trillion yen. “Overall, results were in line with the company’s expectations... and the company expects improved profitability for the remainder of the year,” it said.

Nissan maintained its earnings forecasts for the current fiscal year to March 2018. It predicted net profit to fall 19.4 per cent to 535 billion yen, largely due to year-before gains from the sale of its non-controlling stake in auto parts supplier Calsonic Kansei.

Operating profit is projected to slip 7.7 per cent to 685 billion yen while sales are seen edging up 0.7 per cent to 11.8 trillion yen. — AFP