Nissan Motor Co, the Japanese arm of Franco-Japanese manufacturing alliance Renault-Nissan, has reported a net income to the end of the third quarter of the financial year of ¥274.1bn (2.07bn) a rise of 407% on the same three quarters in 2012.
Net revenue at Nissan also increased 17% to ¥7.93tn in the nine months to the end of December. The rise in both profitability and revenues come despite only a small rise of 1% in global car sales in the same period. To the end of December Nissan sold 3.67 million cars, aided by the launch of a new Qashqai model and in the face of a global downturn in car sales.
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The rise in profitability and revenue has not helped the brand achieve the same levels of profitability as other Japanese brands such as Honda and Toyota. However, the circumstances behind this should not mean a long term weakness in the company, according to Richard Parkin, head of valuations and analysis at UK automotive data provider Glass’s who said he did not believe the future performance of Nissan was reflected in this current financial statement.
Parkin added: "The figures may show the manufacturer to be the worst performer in terms of current profitability against its Japanese rivals, but significant investment by the company has been made into emerging markets and new platforms, and this work will soon begin to come to fruition."
Part of the reason for the weaker results than other Japanese brands was the affect of devaluation in the Yen, which occurred in the last quarter of the year. Nissan were harder hit due to the presence of more factories outside of Japan than many of their homeland rivals.
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By GlobalData
