Nis­san profit beats es­ti­mates

The Pak Banker - - COMPANIES/BOSS -

TOKYO: Nis­san Mo­tor Co. re­ported profit that beat an­a­lyst es­ti­mates as the Rogue cross­over drove in­creased de­mand in the U.S., the Ja­panese au­tomaker's big­gest mar­ket. Net in­come in the quar­ter through De­cem­ber rose to 127.2 bil­lion yen ($1.1 bil­lion), the com­pany said in a state­ment Wed­nes­day. The car­maker topped the 120.6 bil­lion yen av­er­age of eight an­a­lysts' es­ti­mates com­piled by Bloomberg. With Amer­i­cans buy­ing a record num­ber of new ve­hi­cles last year, Nis­san joined other au­tomak­ers in rid­ing the wave of low gaso­line prices, cheap credit and an im­prov­ing la­bor mar­ket. The com­pany's sales gain out­paced peers Toy­ota Mo­tor Corp. and Honda Mo­tor Co. for the third­straight year, with Rogue de­liv­er­ies surg­ing 44 per­cent, the big­gest jump among top mod­els. "It's very clear the driv­ing force is North Amer­ica," Seiji Sugiura, an an­a­lyst at Tokai Tokyo Re­search Cen­ter, said be­fore Nis­san re­leased its re­sults. "Their new cars have con­trib­uted to im­prove­ment in both prof­itabil­ity and sales."

Nis­san fell 1.8 per­cent to 985.3 yen in Tokyo be­fore re­leas­ing earn­ings. The bench­mark Topix in­dex de­clined 3 per­cent. Shares of car­mak­ers in­clud­ing Nis­san have plunged this year as the yen has strength­ened, climb­ing past 115 per dol­lar for the first time in more than a year on Tues­day. In­vestors are pour­ing into Ja­pan's cur­rency as a haven amid con­cerns that global growth is fad­ing. Nis­san has de­clined 23 per­cent in 2016, com­pared with de­clines of 18 per­cent for Toy­ota and 26 per­cent for Honda. Chief Ex­ec­u­tive Of­fi­cer Car­los Ghosn has plans to boost do­mes­tic pro­duc­tion this year to back above 1 mil­lion ve­hi­cles, us­ing more lo­cal ca­pac­ity to take ad­van­tage of a yen that's still weaker than when the car­maker shifted out­put abroad ear­lier this decade. The ben­e­fit of ex­port­ing cars from Ja­pan would be eroded as the yen gains ground. Nis­san sales in­creased 9.4 per­cent in North Amer­ica last year, with de­liv­er­ies in the U.S. climb­ing to a record 1.48 mil­lion units on de­mand for the Rogue and Mu­rano crossovers and In­finiti Q50 sedan.

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