Fri, Apr 14, 2017 - Page 12 News List

Yulon Nissan sets high profit target amid cost control

GET MOVING:Rising sales at home and in China, and an appreciating NT dollar against the yen are seen to drive the company’s profit to NT$1.8 billion this year

By Kuo Chia-erh  /  Staff reporter

Yulon Nissan Motor Co president Leman Lee, left, and a model pose in front of a Nissan iTIIDA at a news conference in Taipei yesterday.

Photo: Yang Ya-min, Taipei Times

Yulon Nissan Motor Co (裕隆日產), which distributes Nissan and Infiniti vehicles in Taiwan, yesterday said it has set a profit target of NT$1.8 billion (US$59.4 million) for this year, compared with last year’s NT$1.2 billion, buoyed by a stronger New Taiwan dollar and better cost control.

“We expect car sales to reach 44,900 units this year, surpassing last year’s 42,000 units,” company president Leman Lee (李振成) said on the sidelines of a new car launch in Taipei.

Yulon Nissan was also upbeat about its China business, citing improved marketing strategies and growing demand for sport utility vehicles (SUV).

Car sales at the company’s Chinese subsidiary, Dongfeng Nissan Passenger Vehicle Co (東風日產), are forecast to hit 1.15 million units this year, compared with 1.12 million units a year earlier, the company said.

This year, the company plans to allocate nearly NT$2 billion in capital spending — virtually flat compared with last year — for the research and development of new models, it said.

To attract more customers, Yulon Nissan said it has put in place a three-year NT$1 billion plan to upgrade its Infiniti showrooms.

The company reported earnings per share of NT$15.44 for last year, up from NT$13.89 in 2015, on robust demand in Taiwan and China.

Last week, the company reported better-than-expected sales for the first quarter, securing its ranking as the third-biggest car seller in Taiwan.

It distributed 11,352 vehicles cars in the first quarter, up 3.2 percent from 10,997 units a year earlier, data compiled by local motor vehicle branches showed.

Revenue during the period rose 3.7 percent to NT$9.86 billion, according to a company filing with the Taiwan Stock Exchange.

“We expect the growth momentum in operating profit to extend throughout this year,” Lee said.

Cumulative operating profit in the first quarter is expected to grow by a double-digit percentage from NT$382.6 million a year ago, supported by the NT dollar’s sharp appreciation against the Japanese yen, as well as increasing revenue contribution from its high-priced models, including compact crossover SUV X-Trail, he said.

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