Nissan returns to Q3 profit, lifts forecast
Wednesday, 10 February 2010
YOKOHAMA, Japan, Feb 9 (Reuters): Nissan Motor Co, Japan's third-largest automaker, returned to quarterly profit Tuesday and lifted its outlook for the second time, as brisk global sales signal the worst may be over for the auto industry.
Nissan joins Toyota Motor Corp and Honda Motor Co in raising annual forecasts, underscoring the impact of government stimulus and the improvement in the global economy following the worst downturn in decades.
Nissan initially projected a second straight year of losses, but changed its outlook in November as Chinese government incentives helped sales in that fast-growing market.
Continued success in China, the world's third-largest economy, is vital for the company, some industry analysts say.
"For Nissan, I am placing my hope on China, whose contribution has become clear to the automaker's recovery," said Takeshi Osawa, a senior fund manager at Norinchukin Zenkyoren Asset Management.
Nissan's positive results come as Toyota struggles with the worst recall in its history, involving more than eight million vehicles and tarnishing its reputation for industry-leading quality.
Nissan acknowledged the problems at its bigger rival, with Chief Operating Officer Toshiyuki Shiga telling a news conference that Nissan would focus more on winning customer trust.
Shiga declined to say how much business, if any, Nissan expected to win from the Toyota recall.
Nissan, which is 44 per cent owned by France's Renault SA, expects an operating profit of 290 billion yen for the year that ends in March, up from its previous estimate of 120 billion yen.
That compares with a 210-billion-yen average estimate in a poll of 19 analysts.
Carlos Ghosn, the head of both Nissan and Renault, said in November that global car sales had bottomed out, saying that he did not expect the global economy to slip back into recession.
Nissan reported an operating profit of 134.07 billion yen ($1.5 billion) for the October-December quarter, swinging from a loss of 99.19 billion yen a year earlier.
Nissan joins Toyota Motor Corp and Honda Motor Co in raising annual forecasts, underscoring the impact of government stimulus and the improvement in the global economy following the worst downturn in decades.
Nissan initially projected a second straight year of losses, but changed its outlook in November as Chinese government incentives helped sales in that fast-growing market.
Continued success in China, the world's third-largest economy, is vital for the company, some industry analysts say.
"For Nissan, I am placing my hope on China, whose contribution has become clear to the automaker's recovery," said Takeshi Osawa, a senior fund manager at Norinchukin Zenkyoren Asset Management.
Nissan's positive results come as Toyota struggles with the worst recall in its history, involving more than eight million vehicles and tarnishing its reputation for industry-leading quality.
Nissan acknowledged the problems at its bigger rival, with Chief Operating Officer Toshiyuki Shiga telling a news conference that Nissan would focus more on winning customer trust.
Shiga declined to say how much business, if any, Nissan expected to win from the Toyota recall.
Nissan, which is 44 per cent owned by France's Renault SA, expects an operating profit of 290 billion yen for the year that ends in March, up from its previous estimate of 120 billion yen.
That compares with a 210-billion-yen average estimate in a poll of 19 analysts.
Carlos Ghosn, the head of both Nissan and Renault, said in November that global car sales had bottomed out, saying that he did not expect the global economy to slip back into recession.
Nissan reported an operating profit of 134.07 billion yen ($1.5 billion) for the October-December quarter, swinging from a loss of 99.19 billion yen a year earlier.