agent Entrepreneur logo
MenuMENU
SearchSEARCH

Nissan Gains a Step on Japanese Rivals

February 8, 2012
4 min to read


YOKOHAMA — Nissan Motor Co. on Wednesday posted a higher profit for the three months ended in December and reaffirmed its full-year estimate, a bullish performance that positions the company as the most profitable of Japan's three major auto makers.


Company President and Chief Executive Carlos Ghosn said in a written statement he is "confident that Nissan will deliver the full-year profitability targets" despite the yen's recent rise to record levels against the dollar, as well as natural disasters in Japan and Thailand that limited production, reported The Wall Street Journal.

Ad Loading...


Nissan said its net income rose 3.2 percent to ¥82.67 billion ($1.08 billion) in the October-December quarter, from ¥80.07 billion a year earlier, due to operating-profit gains in Asia from sales of models such as the company's Leaf electric car in Japan and Teana sedan in China.


Japan's No. 2 car maker by volume also kept intact its ¥290 billion net-profit forecast for the fiscal year ending in March, well above the projections from Toyota Motor Corp. and Honda Motor Co.


The bullish tone sets Nissan apart from domestic rivals Toyota and Honda, both of which posted lower net earnings in the latest quarter. Toyota on Tuesday forecast a ¥200 billion net profit for the full year and Honda last week predicted ¥215 billion in earnings for the year.


Nissan's latest quarterly results also beat a mean estimate of ¥72.54 billion in a survey of seven analysts compiled by Thomson Reuters.


Yet Nissan officials signaled concern about the yen's rise—which dents the company's operating profit by ¥20 billion annually for every ¥1 appreciation against the dollar—and the potential negative impact of the crisis surrounding the euro. A stronger Japanese currency makes vehicles built in Japan less price-competitive abroad and erodes the yen value of repatriated profits.

Ad Loading...


"One reason we didn't change our full-year forecast is due to the possibility problems in Europe could have a big impact on the fourth quarter and beyond," Nissan Corporate Vice President Joji Tagawa said at a news conference. "There's still a lot of uncertainty," he said.


In the latest quarterly results, Nissan's dollar- and euro-based operations did act as a drag on the bottom line. The auto maker posted a 10 percent year-to-year drop in operating profit in North America and a loss of ¥1.4 billion in Europe. However, that was offset by a 16-fold profit increase in Japan and a 2.4 percent gain in the rest of Asia.


The surge in Japanese earnings for the October-December quarter came after an industrywide plunge in demand in the year-earlier period stemming from a phaseout of environmental car subsidies.


To cope with the yen's appreciation, Nissan has shifted more production overseas and increased the use of imported parts in its home market. As part of that effort, the company wants to move up its current business plan's timetable for boosting imported components in Japanese-made cars from an average of about 20 percent in 2009 to at least 40 percent by 2013.


"In the plan, we said use of imports would be increased to 40 percent or more...and although I can't say exactly where we are now, considering the extent of the yen's rise, we are looking into ways to speed that up," Mr. Tagawa said.

Ad Loading...


For the full year, Nissan maintained an earlier estimate for sales of ¥9.45 trillion—the company's highest sales level since the ¥10.8 trillion it posted in the fiscal year ended in March 2008—and an operating profit of ¥510 billion.


That would make Nissan the most profitable of Japan's three largest auto makers, with an operating-profit margin of 5.4 percent for this fiscal year, higher than Honda's 2.5 percent and Toyota's 1.5 percent forecast for the same period. Nissan is targeting an operating-profit margin of 8 percent and a global market of share of 8 percent under its six-year business plan.


Still, Toyota and Honda are trying to regain momentum with normalized output after last year's earthquake and tsunami in Japan and flooding in Thailand, scrambling to lift production to meet backlogs.


In the quarter ended in December, Nissan's operating profit rose 3.6 percent to ¥118.08 billion. Its sales rose 11 percent to ¥2.331 trillion in the quarter.

More Industry

Blue and white RV parked on beach facing the ocean.
Industryby Lauren LawrenceSeptember 3, 2026

RV Group Expands Carolina Footprint

Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.

Read More →
Photo of two men and one woman on a discussion panel
Industryby Hannah MitchellSeptember 1, 2026

Agent Acumen

An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.

Read More →
Gloved hand holding two wrenches next to “Turn Overdue into Opportunity” Graphic
Industryby Lauren LawrenceAugust 27, 2026

Missed Maintenance Creates Opportunity

As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.

Read More →
Ad Loading...
Mitsubishi shadow line-up
Industryby Hannah MitchellAugust 25, 2026

Mitsubishi Unveils U.S. Plan

The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.

Read More →
Photo of a laptop, cellphone and eyeglasses on a desk next to an office window
IndustryAugust 24, 2026

Selling to Grow

The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.

Read More →
Mechanic holding a vehicle diagnostic device while standing above an open car hood
Industryby Hannah MitchellAugust 24, 2026

Recalled Vehicles Hit 5-Year High

Though the number of events has fallen so far this year, impacted units are up significantly. Meanwhile, regulators consider consumer notification changes.

Read More →
Ad Loading...
outside of car dealership with cars parked in front
Industryby Lauren LawrenceAugust 20, 2026

Auto Group Acquires Top-Performing Rooftop

Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.

Read More →
Cars from the rear on a Shanghai freeway
Industryby Hannah MitchellAugust 19, 2026

China as Pacesetter

Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.

Read More →
Orange BMW car on empty road.
Industryby Hannah MitchellAugust 14, 2026

BMW Concept Car Makes Fuel to Burn

The prototype developed in concert with a South Carolina university engineering team generates more solar energy than it uses in a typical daily commute.

Read More →
Ad Loading...
Six men standing for photo outside of car dealership
Industryby Lauren LawrenceAugust 13, 2026

South Carolina Auto Group Downsizes

Florida-based group Holler-Classic has acquired four rooftops, its first in South Carolina, from Dick Smith Automotive Group.

Read More →
Ad Loading...