Nissan Projects 14.4% Drop in Annual Operating Profit of 460bn Yen

Nissan Motor Co. recently announced their forecast for their annual operating profit, a decrease of just 14.4%; defying the setback it faced because of the March 11 earthquake and subsequent tsunami, forecasting another year that the company will witness record sales.

The company has projected a 460bn yen or $5.7bn operating profit for the fiscal year ending March 2012. In spite of the disruption in production following delayed auto parts supply, the company said their sales would increase to 4.60mn models this year, a growth of 9.9%, proving a more positive outlook in comparison to its Japanese auto rivals, Honda and Toyota.

The Chief Executive of the company, Carlos Ghosn, said that they are very confident that supply will be ready, adding that less than 10 of their suppliers were still affected because of the disaster and he hopes to resume normal rate of production by October.

The company reportedly expects a net profit of around 270bn yen, a drop of 15.4% compared to last year’s. Their revenue is also expected to grow to 9.4 trillion yen, a growth of 7.1%, along with planning to double their dividend this year to 20 yen. Their forecast for the annual operating profit is more compared to Honda’s 200bn yen and Toyota’s 300bn yen. Their sales in Japan are witnessing a 1.7% growth, while sales in Europe are growing at 10.4%.

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