Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Japan's Nissan cuts full-year profit forecast by 20%  Join our daily free Newsletter

MENAFN - AFP - 06/11/2012

No. of Ratings : 0
Add to Mixx!


 


(MENAFN - AFP) Nissan on Tuesday slashed its full-year profit forecast by 20 percent as it pointed to slumping sales in China stemming from a bitter territorial row, the effect of a strong yen and weakness in Europe.

Nissan also cut its full-year sales forecast for the firm's biggest single market China by 13 percent as the diplomatic spat between Tokyo and Beijing sparked a consumer boycott of Japanese goods.

Nissan, part-owned by France's Renault, said it now expects to sell about 1.18 million vehicles in China, the world's largest vehicle market, in the year to March, down from a previous forecast of 1.35 million units.

Japan's automakers have seen a steep drop in sales in China, with Honda last week blaming the ongoing row -- and a strong yen -- for a 20 percent cut to its annual profit forecast.

"The China factor is still unpredictable as this is politics, not business," Shigeru Matsumura, auto analyst at SMBC Friend Securities in Tokyo, told AFP.

"Foreign exchange risks will also remain a key factor with a considerable impact on (automakers') earnings."

Toyota, less dependent on the China market than Nissan and Honda, on Monday warned it would sell about 200,000 fewer vehicles in China in the second half of its fiscal year and take a 30 billion yen hit to the bottom line.

The long-standing territorial row flared again in mid-September after Tokyo's nationalisation of an East China Sea island chain that is also claimed by Beijing, setting off huge demonstrations across China and a consumer boycott of Japanese exports.

Japanese factories and businesses across China temporarily closed or scaled back operations over fears of being targeted by angry mobs.

On Tuesday, Nissan said it now tips net profit for the year to March of 320 billion yen (3.99 billion), down 20 percent from its earlier estimate of 400 billion yen.

The China spat would cut 60 billion yen alone from Nissan's annual operating profit, it said.

"The number of visitors to dealerships in China is recovering gradually...and we are making our utmost efforts to normalise the business as quickly and swiftly as possible," Nissan's chief operating officer Toshiyuki Shiga told a press briefing on Tuesday.

"It is too early to think about changing our strategy for China," he added.

But Nissan's Chief Executive Carlos Ghosn has warned that Nissan would think twice about making new investments in China amid the row. It has several production plants in China with a new factory in the northeastern city of Dalian planned for 2014.

The automaker's first-half profit, meanwhile, slipped 2.8 percent to 178.3 billion yen on sales of 4.54 trillion yen, which were up 4.1 percent on-year.

The company recorded double-digit rises in sales in Asia outside Japan and North America, while Europe sales fell about 3.2 percent, it said.

"After factoring in the projected negative impact of a strong yen, disruption in China and continuing weak market conditions in Europe, Nissan has revised downward its full-year forecast," the company said in a statement.

Annual sales were expected to dip to 9.81 trillion yen, down from 10.30 trillion yen, Nissan said.

Japanese firms have also struggled with the high yen which has weighed on the nation's manufacturers by making their products less competitive overseas and shrinking repatriated foreign income.

The yen hit record highs around 75 against the dollar late last year and remains strong.

Nissan shares closed 2.02 percent lower at 677 yen in Tokyo on Tuesday.


 






  MENA News Headlines
Apr 23 2014Omantel launches service package for youth ,MENAFN
(MENAFN) Omantel announced launching 'Ozone' plan, a new package designed especially for the youth. This comes with the company"s constant efforts to enhance the communication needs of its customers, ...

Apr 23 2014Dh154 billion for Arabtec projects ,Khaleej Times
(MENAFN - Khaleej Times) Arabtec will spend dh140 billion on building one million low-cost houses in egypt and dh14 billion on five mixed-use residential projects in abu dhabi and dubai its chief ...

Apr 23 2014?Titli? makers excited about Cannes selection ,Khaleej Times
(MENAFN - Khaleej Times) The movie about the badlands of delhi?s dystopic underbelly will be in competition as part of the un certain regard section of the 67th cannes film gala to be held may ...

Apr 23 2014Saudi- Yaroub Bashraheel: In search of peace ... underwater ,Arab News
(MENAFN - Arab News) You've heard of diving snorkeling and other water activities but rarely has anyone heard of free-diving. it's a form of diving underwater without the aid of any breathing ...

Apr 23 2014Saudi- Schneider highlights intelligent health care solutions at forum ,Arab News
(MENAFN - Arab News) Schneider electric a global specialist in energy management is set to showcase its leadership in intelligent health care solutions at the second saudi forum for planning and ...

Apr 23 2014Saudi- Divorcees can seek housing ,Arab News
(MENAFN - Arab News) The kingdom will accept applications from saudi divorced women and widows for financial and housing support said justice minister muhammad al-issa.al-issa called on applicants ...

Apr 23 2014Saudi Savola Group revenue up 43 pct in Q1 ,MENAFN
(MENAFN) Saudi Arabia's Savola Group registered a 43 percent increase in profits in the first quarter, well over expectations of analysts, Arabian Business reported. According to a statement to ...

Apr 23 2014Dewa and GE explore collaboration opportunities ,Khaleej Times
(MENAFN - Khaleej Times) Saeed mohammed al tayer managing director and chief executive officer of the dubai electricity and water authority (dewa) recently received a ge delegation to explore ...

Apr 23 2014Sale of Gate Towers penthouses launched ,Khaleej Times
(MENAFN - Khaleej Times) Aldar properties has launched the sale of 21 exclusive duplex penthouse apartments at gate towers the penthouse collection in shams abu dhabi on al reem island. one of ...

Apr 23 2014ADCB profit grows 26% in first quarter ,Khaleej Times
(MENAFN - Khaleej Times) Abu dhabi commercial bank?s profit grew 26 per cent in the first quarter of the year to dh1. however net profit rose 22 per cent year-on-year. non-interest income was 24 ...

Apr 23 2014Saudi- New passport office opens at Red Sea Mall ,Arab News
(MENAFN - Arab News) The passport department has opened a new office for citizens and residents at the red sea mall.gen. abdul rahman bin abdullah al-tuwairki deputy director general of the ...

Apr 23 2014Local international companies come out in force ,Khaleej Times
(MENAFN - Khaleej Times) Cityscape abu dhabi has started showing stronger interest from property developers who have showcased their upcoming projects. the three-day realty show was opened by ...

Apr 23 2014'Piles and piles' of bodies in S. Sudan ,Arab News
(MENAFN - Arab News) Nairobi: gunmen who targeted both children and the elderly left 'piles and piles" of bodies — many of those in a mosque — in a provincial capital in south sudan the un's top ...

Apr 23 2014Tamouh steps up activity on projects ,Khaleej Times
(MENAFN - Khaleej Times) Abu dhabi-based real-estate developer tamouh has scaled up construction activity on all of its announced reem island projects to meet the rising demand for prime spaces in ...

Apr 23 2014UAE- Billion-dollar realty projects on show ,Arab News
(MENAFN - Arab News) Cityscape abu dhabi a three-day realty event that began with 120 regional and international exhibitors witnessed major announcements on tuesday.salama bint hamdan al-nahyan ...

Apr 23 2014Kowait- Police deportation powers curbed ,Arab Times
(MENAFN - Arab Times) Kuwait city april 3 (afp): kuwaiti police will no longer be able to deport expatriates without interior ministry approval under new rules published thursday after officers ...

Apr 23 2014Saudi- Ministry launches complaint center for domestic workers ,Arab News
(MENAFN - Arab News) The labor ministry has launched a first-of-its-kind multilingual communication center to address complaints and grievances voiced by the kingdom's 1.2 million domestic ...

Apr 23 2014Qatar's MPHC net profit hits USD127m in Q1 ,MENAFN
(MENAFN) Qatar's Mesaieed Petrochemical Holding Company (MPHC) announced that a net profit increase in the January-March period of this year, The Peninsula Qatar reported. The company, a leading ...

Apr 23 2014Kowait- Rationalization of water use in focus ,Arab Times
(MENAFN - Arab Times) Kuwait city april 7 (kuna): under the patronage of minister of electricity and water abdulaziz al-ibrahim kuwait environment protection society (keps) organized monday a ...

Apr 23 2014Kowait- MoI FM discuss visa issuance by embassies ,Arab Times
(MENAFN - Arab Times) Kuwait april 10 (agencies): officials of the ministries of interior and foreign affairs on thursday discussed implementation of a decision by the minister of interior to ...

more...


 
Arab Advisors_11th convergence conf






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country
Marketwatch News
UPI News
Comtex News

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help