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Nissan's profit rises a record 12 percent

Nissan Motor Co President Carlos Ghosn announces the automaker's business results in Tokyo yesterday. PHOTO: AP

Nissan Motor Co's full-year profit rose 12 percent to a record, propelled by rising US sales and gains from a weak yen. Japan's No. 3 automaker said net income will increase 2 percent this year as cost cuts take hold.

Group net income for the year to March 31, 2002, rose to Japanese yen 372 billion (US$2.9 billion) from Japanese yen 331 billion the previous year, based on preliminary figures. The result was in line with market estimates while the projection for the current year beat average forecasts by nine analysts in a Bloomberg survey.

"These results have not been priced into the shares," said Marc Desmidt, who helps manage Japanese yen 1 trillion in Japanese stocks at Merrill Lynch Investment Managers Co, including auto shares. "This is a company that continues to be underestimated."

The second straight year of record results was fueled by rising demand for new models in the US, led by the Altima, while the yen's drop inflated the value of all sales abroad. Japan's third-biggest automaker expects to roll out 22 new or revamped models this business year to stoke sales.

Sales rose 1.8 percent to Japanese yen 6.2 trillion in the year ended March 31, 2002, up from Japanese yen 6.1 trillion in the previous year.

Nissan's figures were preliminary earnings, with the company releasing final numbers on May 20.

Shares of Nissan, the world's fifth-largest automaker by market value gained about 42 percent this year.
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