Nissan Corporate Vice President Joji Tarawa spells out the maker's quarterly results.
Nissan Motor Co., Ltd. enjoyed a profitable second quarter for this year with operating profit up more than 35% due to strong demand for its crossovers and sporty sedans in the United States, officials said.
During the three months ending June 30, global total industry volumes – or TIV – reached 22.79 million units, an increase of 3.5%, the company reported. In the U.S., Nissan’s sales rose by 7.9% to 398,000 units, equivalent to a market share of 8.7%, amid strong demand for Altima, Rogue and the new Maxima.
The company has performed well in China as well during the first half of 2016. Six-month sales performance in China, Nissan’s passenger vehicle sales increased 6.6% to 526,000 units.
In Mexico, Nissan maintained its number-one position with unit sales increasing 14.6% to 91,000 units, equivalent to a market share of 24.4%.
The Japanese maker’s operating profit was $1.6 billion (175.8 billion yen) for the period, representing a 6.6% margin on net revenues of $24.6 billion (2.65 trillion yen). On a constant currency basis, operating profit was 267 billion yen, up 37.8%.
“Nissan has delivered solid results in the first three months of the fiscal year despite recent currency headwinds and continued emerging-market volatility,” said Carlos Ghosn, president and chief executive officer in a statement.
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“Encouraging demand for core products, particularly in North America, and our continued focus on cost efficiencies contributed to an improved underlying performance, making us well placed to deliver our full-year net income guidance. This reflects our cost-discipline, on-going product offensive and the benefits of our Alliance strategy.”
On a management pro forma basis, which includes the proportionate consolidation of results from Nissan’s joint-venture operations in China, net revenue was 2.89 trillion yen. Operating profit was 209 billion yen, resulting in a 7.2% operating profit margin.
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Despite such positive results, Nissan only maintained its full-year forecast that it issued in May, including revenue of $112.4 billion, or 11.8 trillion yen, and an operating profit of $6.8 billion or 710 billion yen. The company’s net income is predicted to be $5 billion or 525 billion yen.