Nissan Sales, Profits Rise

A strong final fiscal quarter at Nissan Motor Co. helped boost the company’s full-year revenue 2% to 12 trillion yen ($110 billion) and net income 13% to 747 billion yen ($6.8 billion).

Nissan says changes in U.S. tax rates more than offset a 23% drop to 575 billion yen ($5.2 billion) in operating profit for the 12-month period ended March 31. The company’s operating margin shrank to 4.8% from 6.3% in fiscal 2016.

The carmaker’s retail sales rose 3% worldwide to a record 5.77 million units in fiscal 2017. Sales were buoyed by a 12% gain to 1.52 million vehicles in China (which reports figures on a calendar year) and 5% to 584,000 units in Japan. Those increases offset declined in North America (-2% to 2.09 million vehicles) and Europe (-3% to 756,000 units).

Nissan predicts its retail sales in the current fiscal year will increase 3% to 5.93 million units, and net revenue will be unchanged at 12 trillion yen.

But the company expects its operating profit for the 12-month period will shrink 6% to 540 billion yen ($4.9 billion), and net income will plunge 33% to 500 billion yen ($4.6 billion). Nissan blames the expected decline on unfavorable exchange rates and increased spending on materials and product development.