Nissan’s Quarterly Income Rises 4%

Nissan Motor Co.'s net income rose 4% to 131.7 billion yen ($1.2 billion in the fiscal third quarter ended Dec. 31), as retail unit sales grew 8% to 1.38 million vehicles.

But higher sales costs and unfavorable exchange rates caused net revenue to shrink 2% to 2.9 trillion yen ($26.2 billion). And operating profit for the period fell 15% to 163.5 billion ($1.4 billion).

Nissan’s quarterly unit sales in North America climbed 8% to 534,000 units, including a 5% gain to 381,000 vehicles in the U.S. Sales in Europe advanced 4% to 180,000 units, where the company’s operating loss narrowed 22% to 8.4 billion yen ($74.7 million).

In Japan, Nissan’s third-quarter revenue surged 14% to 1.3 billion yen ($11.6 million). Unit sales rose 13% to 133,000 cars and light trucks. Operating income jumped 80% to 145 billion yen ($1.3 billion).

Elsewhere in Asia, the company’s quarterly sales climbed 11% to 404,000 vehicles, led by an 18% jump to 319,000 units in China. But net sales dropped 12% to 406 billion yen ($3.6 billion), and operating income shrank 17% to 17.5 billion yen ($156 million).

Nissan says the strengthening Japanese yen cost the company nearly 82 billion yen ($726 million) in October-December, with 85% of the loss occurring in North America. As a result, Nissan’s quarterly operating profit in that region plummeted 72% to 26.9 billion yen ($239 million).