Nissan quarterly profit falls 15% over strong yenJuly 26, 2012 - 15:52 AMT PanARMENIAN.Net - Nissan said Thursday, July 26, its quarterly profit fell 15 percent from a year earlier as the strong yen bit into car sales, according to AP. The Yokohama-based company reported a 72.3 billion yen ($900 million) profit, down from 85 billion yen a year earlier. Worldwide sales rose 2.6 percent. Company chairman Carlos Ghosn said Nissan had triumphed in growing sales despite the "harsh economic environment" thanks to its strong model lineup, which includes the Leaf electric car. Japanese automakers have been hammered by the strong yen which erodes profit from cars produced in Japan and then shipped overseas. Nissan Motor Co. has remained upbeat, however, earlier raising its forecast for the fiscal year through March 2013 to a 400 billion yen ($5 billion) profit, up from its earlier forecast for 290 billion yen ($3.6 billion) profit. The company is gearing up for stronger growth despite the slowdown in Europe, counting on solid demand in emerging markets such as China. Ghosn has said Nissan aims to be the No. 1 Asian brand in China, Russia and India. Nissan made a remarkably quick recovery from the March 2011 earthquake and tsunami disasters that ravaged much of northeastern Japan and disrupted auto production, selling a record 4.85 million vehicles worldwide in 2011. It expects to sell 5.35 million this year. Reflecting that strong rebound, its January-March profit had more than doubled to 75.3 billion yen ($941 million). The company's performance in the most recent quarter reflects a "return to normal," it said. To counter the unfavorable exchange rate, Japanese car makers are increasingly shifting production abroad, making countries such as Thailand important auto production bases. Last week, the French-Japanese auto alliance of Renault and Nissan announced it is investing $160 million in its South Korean unit to produce Nissan-branded Rogue sport-utility vehicles mostly destined for the United States. Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | U.S. warns Georgia not to side with Moscow against the west Georgia has been warned by the U.S. not to become an adversary of the west by falling back in line with Moscow. Power of One Dram sums up two-year program with Teach for Armenia Idram Junior also joined the companies during the visit, bringing with it a fascinating intellectual game for children Moscow slams EU mission in Armenia for “provocative activity” The EU mission is doing more and more against Armenia’s neighbors Russia, Azerbaijan and Iran, Mikhail Galuzin said. Yerevan Mayor to travel to Paris on May 15-19 The official delegation headed by Yerevan Mayor Tigran Avinyan will travel to Paris from May 15 to 19. |