Nissan achieves record sales, first quarter profit doubles

Nissan is doing well compared to its Japanese peers. It was announced that profits made a sharp jump in the first quarter of 2012 on the back of an aggressive push in fast-growing markets. The Yokohama-based company reported a net profit of 75.3 billion yen (US$943 million), up from 30.8 billion yen from 2011.

Global sales hit 4.8 million units in its 2011 financial year, a company record. For the full FY ending in March 2012, Nissan reported net income of 341.4 billion yen, a 7% rise on the previous year. Japan’s second-biggest carmaker outperformed rivals Honda and Toyota, both of which reported lower profits.

The past 12 months have been a tough one for Japanese carmakers. The tsunami and earthquake disaster in Japan disrupted production lines and caused power shortages. And just when they were back on steam, the massive floods that covered Thailand – a regional base for most Japanese brands – bogged them down again. Nissan bounced back faster from these setbacks to create today’s headline.

In addition to the natural disasters, a strong currency has hurt Japanese exporters as it makes their goods more expensive overseas and eats into the profits they bring back. “It is an even more encouraging performance given the headwinds created by natural disasters, an over-valued yen and uncertain global economic conditions,” underlined Nissan’s CEO Carlos Ghosn.

No resting on laurels – Nissan is predicting an even better showing for the current financial year. Global sales is forecasted at 5.35 million units, an increase of more than 10%, while net profits are predicted to hit 400 billion yen.

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