Nissan Profits Up 3.2%

Japan’s third largest automaker, Nissan Motors Co. (Other OTC:NSANY.PK - News), posted a 3.2% rise in profits to ¥82.7 billion ($1.07 billion) in the third quarter of its fiscal year ended December 31, 2011 from ¥80.1 billion in the same period last year despite the backlash from severe floods in Thailand and an appreciating yen.

The company stated that the dollar was trading at about ¥77 during the last quarter, down from ¥83 in the previous year quarter.
Sales in the quarter went up 10.9% to ¥2.33 trillion ($30.27 billion) from the prior year. Operating profit scaled up 3.6% to ¥118.1 billion ($1.54 billion).
Nissan expects to record a profit of ¥290 billion ($3.77 billion) for the fiscal year ending March 31, 2012. It also anticipates reporting an operating profit of ¥510 billion for the year.
The company’s guidance was much better than its compatriots, Toyota Motor Corp. (NYSE:TM - News) and Honda Motor Co. (NYSE:HMC - News). Both Toyota and Honda expects to post a profit of ¥215 billion ($2.79 billion) and ¥180 billion ($2.34 billion), respectively for the same fiscal year.
Among the three largest automakers, Nissan recovered faster from both the earthquake on March 11 last year and flooding in Thailand that disrupted parts supply chains compared with Toyota and Honda.
Nissan stated that it lost 33,000 vehicles of output due to the Thai floods, while Toyota and Honda each lost more than 200,000 vehicles.
Nissan Motor, founded in 1933 and headquartered in Yokohama-shi, Japan, together with its subsidiaries, engages in the manufacture and sale of automotive products, industrial machinery, and marine equipment primarily in Japan, North America, and Europe. The company offers passenger cars, trucks, buses, forklifts, light commercial vehicles, power trains, and parts, as well as involves in sales financing activities.
Due to better than expected recovery and promising results, the company currently retains a Zacks #2 Rank on its stock, which translates to a short-term (1 to 3 months) rating of Buy.