The net profit of the Japanese Nissan Motor Co. in the second quarter of 2016-2017 fiscal year, fell 15.5% (y/y) to 146.1 billion yen ($ 1.4 billion), from 172.8 billion yen. Operating profit decreased by 19%, to 163.9 billion yen, according to a company press release.
Analysts on average had forecast that Nissan would have a net income of 125.5 billion yen and operating profit of 154.5 billion yen.
The quarterly revenue decreased by 12.1%, to 2.67 trillion yen.
Like other Japanese automakers, Nissan earns money mainly outside the country, but the financial accounts shall be maintained in yen, and the strong yen reduces the company's financial performance.
Nissan increased sales in the US due to higher discounts of up to $ 4000 for the car, which is more than other Japanese auto manufacturers, and about the level of the US automakers.
In the first half of the fiscal year, Nissan reduced the operating profit by 14% to 339.7 billion yen, and revenues fell 10.3%, to 5.3 trillion yen.
The company confirmed its forecast for annual operating profit at 710 billion yen, a decrease of 10.5% compared to the previous fiscal year. According to Nissan estimates, the average rate of the yen against the dollar this year will amount to 105 yen/$1, while the euro would cost 120 yen.
As for the Japan's stock market as a whole, it closed the trading session on Monday higher due to the strengthening of the shipbuilding, mechanical engineering and the automotive industry sectors.
At the close on the Tokyo Stock Exchange, Nikkei 225 rose 1.61%.
The leader of growth among the Nikkei 225 index components were the shares of Suzuki Motor Corp. (T: 7269), which went up by 257.0 p. (7.19%), closing at 3831.0.
On the Tokyo Stock Exchange, the number of advancing securities (2192) exceeded the number closed in the red (823), and the quotes of 273 shares remained virtually unchanged.
Meanwhile, USD/JPY pair rose 1.30% to 104.43, and EUR/JPY rose 0.64%, reaching 115.57.