News Column

Chinese demand for cars helps drive earnings growth at Nissan

May 13, 2014

CITY A.M. REPORTER



JAPANESE car company Nissan expects a 4.1 per cent rise in net profit this financial year, boosted by sales of low-priced Datsun cars in emerging markets and growth in China, the world's largest car market, although the gain is short of analyst estimates.


The forecast is for 405bn (2.35bn) in net profit for the year ending March 2015.


For the three months to March 2014, net profit rose 4.8 per cent year-on-year to 114.9bn, Nissan said in a statement yesterday, exceeding the 97.1bn analyst estimate.


Nissan is currently increasing manufacturing capacity in Thailand, China and Russia.


Chief executive Carlos Ghosn said the firm will prioritise boosting profit margins to eight per cent over market share.


Nissan forecast an operating margin of five per cent for this financial year excluding China, compared to 8.9 per cent at rival Toyota and six per cent at Honda.


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Source: City A.M. (UK)