Nissan profit drops by 16% in second quarter – Net profit lowered to USD 1.4 billion

Nissan Motors' profit dropped by 16% in the second quarter of its financial year, as the increase in the value of the yen had cut into foreign revenues and since the Japanese car manufacturer had increased incentives in the USA.

The net profit dropped to JPY 146.1 billion (USD 1.4 billion) in the quarter ending with September from JPY 172.8 billion made a year earlier, the company reports. The Japanese company has kept the projection of 2016 profit at JPY 525 billion.

The growth of the yen to the dollar by more than 18% in the observed period eroded the Japanese competitiveness and reduced the value of foreign revenues.

Nissan's shipments to the USA, however, increased thanks to an aggressive program of trade incentives at the expense of the profit, even though the revenues of all the important players in the industry decreased in the second biggest world market.

The Japanese car manufacturer offered incentives of around USD 4,000 per car, much more than their Japanese competitors and close to what American car manufacturers offer, according to the data by Tokyo-based Tokai Research Center.

Nissan's shipments to the USA jumped by 3.7% from April till the end of September, compared to a 0.8% drop in sales of its leading competitors.

Nissan Motor Co. Ltd Japan

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