Nissan keeps fiscal year operating profit target despite yen strength
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[08/22/2007] TOKYO (Dow Jones)--Despite the sharp rise in the yen against the dollar, Nissan Motor Co. (7201.TO) is sticking to its forecast for an Y800 billion group operating profit in the fiscal year ending March, the auto maker's chief operating officer said Wednesday.
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(Adds quote from Chief Operating Officer, comments on U.S. sales and request from Tokyo Electric Power)
TOKYO (Dow Jones)--Despite the sharp rise in the yen against the dollar, Nissan Motor Co. (7201.TO) is sticking to its forecast for an Y800 billion group operating profit in the fiscal year ending March, the auto maker's chief operating officer said Wednesday.
"We'll make efforts to achieve Y800 billion" in operating profit, Toshiyuki Shiga said at a press conference for Nissan's X-Trail sport-utility vehicle.
Shiga stopped short of saying whether the company would revise its forecasts if the greenback remains weaker than Y117, which is what the company anticipates for this fiscal year.
Shares of Japanese exporters such as auto and consumer electronics makers plunged last week after the yen surged to a 14-month high against the dollar. The jump sparked concerns that exporters would be forced to lower their earnings forecasts for this fiscal year on expectations that their profits earned overseas would be eroded when repatriated into yen.
Shiga added he doesn't anticipate any major impact from a potential slowdown in auto demand due to the subprime mortgage troubles in the U.S.
He said he expects the series of new models, such as the redesigned Altima and Sentra models, that Nissan has launched in North America since the latter half of last fiscal year to help it meet its U.S. sales projections for this fiscal year of 1.10 million vehicles.
He added that this sales outlook is relatively conservative given the expected impact from the fresh model lineup, suggesting that the forecast shouldn't be very hard to reach.
Shiga also said Nissan's domestic production operations won't likely be interrupted by possible requests from Tokyo Electric Power Co. (9501.TO) to reduce the amount of electricity it uses.
The electric power company, which is also known as Tepco, decided Wednesday to launch an emergency supply-adjustment measure for the first time in 17 years due to concerns of an electricity shortage amid surging power demand due to a heat wave in Japan.
Under its contract with Tepco, Nissan needs to accept requests from the electric company to reduce power usage at three of its domestic plants - one in Tochigi and two in Kanagawa - in case the Tokyo-based power supplier faces an electricity shortage.
If asked, the auto maker will stop using air conditioners and test facilities at those plants to meet the request so that it won't have to halt its production lines, Shiga said.
On Tuesday, Nissan received a precaution that TEPCO might ask the auto maker to slash power usage, though the power company didn't actually do so, Hidetoshi Imazu, an executive vice president at Nissan in charge of manufacturing operations, said at the press conference.
The car maker hasn't received such requests so far Wednesday, Imazu said.
TOKYO (Dow Jones)--Despite the sharp rise in the yen against the dollar, Nissan Motor Co. (7201.TO) is sticking to its forecast for an Y800 billion group operating profit in the fiscal year ending March, the auto maker's chief operating officer said Wednesday.
"We'll make efforts to achieve Y800 billion" in operating profit, Toshiyuki Shiga said at a press conference for Nissan's X-Trail sport-utility vehicle.
Shiga stopped short of saying whether the company would revise its forecasts if the greenback remains weaker than Y117, which is what the company anticipates for this fiscal year.
Shares of Japanese exporters such as auto and consumer electronics makers plunged last week after the yen surged to a 14-month high against the dollar. The jump sparked concerns that exporters would be forced to lower their earnings forecasts for this fiscal year on expectations that their profits earned overseas would be eroded when repatriated into yen.
Shiga added he doesn't anticipate any major impact from a potential slowdown in auto demand due to the subprime mortgage troubles in the U.S.
He said he expects the series of new models, such as the redesigned Altima and Sentra models, that Nissan has launched in North America since the latter half of last fiscal year to help it meet its U.S. sales projections for this fiscal year of 1.10 million vehicles.
He added that this sales outlook is relatively conservative given the expected impact from the fresh model lineup, suggesting that the forecast shouldn't be very hard to reach.
Shiga also said Nissan's domestic production operations won't likely be interrupted by possible requests from Tokyo Electric Power Co. (9501.TO) to reduce the amount of electricity it uses.
The electric power company, which is also known as Tepco, decided Wednesday to launch an emergency supply-adjustment measure for the first time in 17 years due to concerns of an electricity shortage amid surging power demand due to a heat wave in Japan.
Under its contract with Tepco, Nissan needs to accept requests from the electric company to reduce power usage at three of its domestic plants - one in Tochigi and two in Kanagawa - in case the Tokyo-based power supplier faces an electricity shortage.
If asked, the auto maker will stop using air conditioners and test facilities at those plants to meet the request so that it won't have to halt its production lines, Shiga said.
On Tuesday, Nissan received a precaution that TEPCO might ask the auto maker to slash power usage, though the power company didn't actually do so, Hidetoshi Imazu, an executive vice president at Nissan in charge of manufacturing operations, said at the press conference.
The car maker hasn't received such requests so far Wednesday, Imazu said.
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