Nissan Hikes Profit 14% As Yen Weakens

Nissan Motor Co. boosted net earnings to 82 billion yen ($834 million) in the fiscal first quarter ended June 30 from 72 million yen ($732 million) a year earlier.

Revenue climbed 18% to 2.23 trillion yen ($22.7 billion) in the latest period, buoyed by a 25% plunge in the yen's value against the dollar from a year earlier.

Worldwide vehicle sales in the quarter slipped 3% to 1.17 million units. U.S. deliveries jumped 20% to 306,000 vehicles as the lower yen allowed Nissan to cut prices.

That advance wasn't enough to offset the company's volume declines in all other regions, including Japan (-4% to 135,000 vehicles), Europe (-10% to 151,000) and Asia (-15% to 369,000). Asian sales were dented by a 15% drop to 284,000 units in China, where anti-Japan sentiment continues to dampen demand.

Nissan's first-quarter operating income jumped 23% to 108.1 billion yen ($1.1 billion). Operating profit increased one-third in North America and more than doubled in Japan, where the declining yen boosted exports. Those gains outweighed a 52% operating earnings drop in Asia and a small loss in Europe.

Nissan says results in coming months will be bolstered by the weaker yen, improving sales in China and higher production in the U.S. after model changeovers. The company confirms its full-year outlook for net profit of 420 billion yen ($4.3 billion), operating profit of 610 billion yen ($6.2 billion) and revenue of 10.37 trillion yen ($105.4 billion).