After being affected by recalls, slowing demand and exchange rates, Nissan was forced to cut its profit outlook in the last two years. The higher than expected profit in the last quarter is thus welcomed news for investors. Stocks are currently trading up almost 4% to $20.19, the highest levels since December 2013.
Demand for Nissan automobiles in China was up by 21.1%. The Japanese company also benefited from a 14.1% increase in US demand and the launch of new family of SUVs, ranging from the Juke facelift to the all-new Qashqai, Rogue and X-Trail. In total, 1,240,000 million vehicles were sold in the three-month period, a 6% year-on-year.
During an earnings briefing yesterday, Nissan reaffirmed its 2014 targets. The company expects to sell 5.65 million units this fiscal year ending on March 2015, up 8.9%. Two new factories in Mexico and Brazil, the new Datsun and Infiniti models, plus revisions to the current lineup should help them meet the profit target of 405.0 billion yen ($4.05 billion/€2.89 billion).
"Nissan continued to make progress in the first three months of the fiscal year as encouraging demand for new products, benefits from recent plant investments, and improving market conditions in North America, China and Europe combined to lift both revenues and profits," said Carlos Ghosn, president and chief executive officer. "Nissan is well placed to deliver on its outlook given our continued product offensive along with measures to enhance competitiveness, build market share and the ongoing benefits of our Alliance strategy."