Business is booming for Japan carmaker Nissan Motor Corp. The Yokohama-based firm has announced that its 2013 fiscal year profit increased by 13.6 percent earning them ¥498.3 billion last year. The net profit was reported at 14% increase, leaving the company with a ¥389 billion from net sales of ¥10.48 trillion.
CEO Carlos Ghosn said, “Nissan outperformed the market with unit sales up 11.1 percent to 719,000 in Japan.” Sales volume in the U.S. also increased by 13 percent to 1.29 trillion units sold. Ghosn attributed increased sales in Japan with the weakening yen in light of “Abenomics” and efforts to reduce costs in the manufacturing. The carmaker’s objective this 2014 is to sell more units in regions outside Japan. They are looking at an 8.9 percent increase in sales, which totals to 5.65 million units sold. The strategy to increase sales volume in places outside Japan is in line with their anticipation that the buying power of the Japanese public may be restrained due to the increase in the sales tax implemented last April 1. Ghosn noted, “In Japan, we expect continued pressure on consumers due to the recent sales tax increase.” He added that company aims to offset low sales in Japan by growing their market in China, North America and in Europe.
The company is preparing for a decrease of sales in Japan by at least 11 percent, which would be around 640,000 units. On the other hand, an anticipated sales growth of 17.6 percent in China will result to 1.43 million units sold. In North America, 6.8 percent increase will see 1.76 million units and 15.4 percent in Europe will sell 780,000 units. Overall, the company is aiming for the operating profit to increase by 7.4 percent, ending at ¥535 billion. Meanwhile, net profit is targeted at ¥405 billion, a 4.1 percent increase from the previous year while sales is expected to be up by 2.9 percent to a total of ¥10.79 trillion.