Nissan sees small profit rise but sales in China fall

Nissan cars Tensions between China and Japan have dragged down sales in China, a key market for Nissan

Japanese carmaker Nissan has reported a small rise in full-year profits, but sales in its key market of China fell.

Net income amounted to 342.45bn yen ($3.4bn; £2.2bn), up 0.3% from the previous year. Global revenue grew 2.3% to 9.6 trillion yen.

Sales in China fell 5.3% to 1.18 million units, with Nissan's market share down 6.5% from the previous year.

Chinese consumers were urged to boycott Japanese goods last year amid a row between the two countries.

China makes up a quarter of Nissan's global sales, and chief executive Carlos Ghosn has pledged to become a leader in electric cars in China, ploughing significant investment into the technology.

Sales in Europe decreased 7.5% to 660,000 as the downturn in the region's economy hit sales.

US sales rose 5.4%, while demand in emerging markets was strong. Overall, sales worldwide increased to 4.9 million units, up 1.4% from the previous year.

Nissan, which is partly owned by France's Renault, said it expected net profit to increase by 23% to 420bn yen in the current financial year.

Toyota and Honda both reported record sales in the year ended March. Revenue for Toyota rose 16.3% while Honda saw sales jump 32.2% year-on-year.

Their profit rise has been largely due to a weakening yen against other currencies, which inflates overseas earnings when they are repatriated. But Nissan used a relatively conservative exchange rates when calculating its latest earnings, with a dollar-yen rate of 82.9 yen to the dollar.

More on This Story

Global Car Industry

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.