(NSANY) Nissan Motor Sees a Droopy Year

Nissan Motor Co. (NSANY) revealed that it expects a 15.4% fall in profit to ¥270 billion ($3.4 billion) due to the setback from the earthquake and tsunami in Japan on March 11 that broke down infrastructure and damaged many parts supplying companies’ plants causing disruptions in the supply chain.

The Japan’s third largest automaker also anticipates a 14.4% dip in operating profit to ¥460 billion ($5.73 billion) due to the same reason. For the fiscal year ended March 31, 2011, the automaker reported more than sevenfold increase in profit to ¥319.2 billion ($3.94 billion) from the previous fiscal year. Its sales increased 17% to ¥8.77 trillion ($108 billion) during the year.

Nissan sold 4.185 million vehicles during the year, an increase of 19.1% from 3.515 million vehicles in the previous year. The company’s sales in its largest market, China, surged 35.5% to 1.02 million vehicles.

Nissan produces 70% of its vehicles in North America that are sold in the U.S. However, the company manufactures its popular Leaf electric cars, Infiniti luxury models as well as GTR and 370Z models entirely in Japan.

Almost all the major Japanese automakers have been hit by the natural disaster in the country. They have suspended and cut down their production in the wake of plant outages and parts supply shortage. These actions will undoubtedly lead to lower revenues and earnings.

Recently, Nissan’s home country rival Toyota Motor Corp. (TM) projected a 31% drop in full year profit to ¥280 billion ($3.5 billion) from ¥408 billion a year ago driven by lower sales on account of the earthquake in Japan and stronger yen.

Toyota has projected global sales to decrease to 7.24 million vehicles from 7.31 million vehicles in fiscal 2011, which will reduce earnings by ¥120 billion. These figures included sales at truck maker Hino Motors Ltd. and compact carmaker Daihatsu Motor Co.

On the other hand, Honda Motor Co. (HMC) expects a stark 63.5% drop in profit to ¥195 billion ($2.4 billion) for the fiscal year from ¥534 billion recorded in the previous fiscal year.

The company anticipates global vehicle sales to dip 6% to 3.3 million vehicles from 3.51 million vehicles a year ago on lower production due to parts shortage resulting from the twin disaster in Japan.

However, the company’s motorcycle sales are expected to rise 10.5% to 12.65 million units, despite a planned 20% decrease in motorcycle production to 14.5 million vehicles, reflecting the dissolution of an Indian joint venture, Hero Honda.

HONDA MOTOR (HMC): Free Stock Analysis Report

NISSAN ADR (NSANY): Free Stock Analysis Report

TOYOTA MOTOR CP (TM): Free Stock Analysis Report

Zacks Investment Research

About vitalstocks

This is a sample profile field. Vitalstocks is the operating company for Stockbloghub. This will place the picture of the author or company in the profile. Here is another extra line of information.


Powered by Facebook Comments

Similar Posts: | | | | | | Auto Manufacturers - Major | Consumer Goods

RSS feeds: HMC | Honda Motor Company Limited | NISSAN MTR SPON AD | NSANY | TM | Toyota Motor Corporation | Auto Manufacturers - Major | Consumer Goods |

Other Posts by | RSS Feed for this author