Nissan raises Full-year Net Profit Forecast by over 10%

Nissan raises Full-year Net Profit Forecast by over 10%

Japan’s second-biggest automaker, Nissan Motor Co., has raised its full-year profit forecast by more than 10% after solid sales in the United States. The company announced on Monday that the full-year profit could be around 535 billion yen. The profit will be up about 17% from the last financial year.

The profit forecast by the company is also up from its May’s forecast of about 485 billion yen. Nissan has also announced to raise its operating income forecast to about 730 billion yen. Fast sale growth in the US has benefited the company.

An analyst Seiji Sugiura from Tokai Tokyo Research Center said, “The strong U.S. demand is making up for weakness in many other markets, including Japan. But they can’t count on the U.S. forever because the market will peak out and their model mix will deteriorate”.

According to Nissan, in the second quarter in the US, the company’s sales grew more than 7% from last year. Solid sales of Rogue crossover and Altima sedan have helped the company to grow and sell more than 380,000 vehicles.

The company is having a very good time in the US, but a slowdown is China is worrying the Yokohama, Kanagawa Prefecture, headquartered company. In the second-quarter, sales in China fell by approximately 6% from last year. The company’s sale in Chinese auto market is hit by economic slowdown. In next few months, Nissan may see a rise in sale as the company is going to sell a new sedan named ‘Lannia’.