TOKYO (Reuters) – Nissan Motor and Honda Motor said on Thursday they expect to post higher-than-expected profits for their current fiscal year, helped by a recovery in sales and a weak yen.
Nissan’s operating profit rose 127% for the July-September period, to 208.1 billion yen (1.29 billion euros).
Analysts were expecting a profit of 155.9 billion yen according to a consensus of 10 analysts by LSEG.
The automaker raised its full-year operating profit forecast by nearly 13 percent to 620 billion yen, due to the favorable impact of the weak yen and improving earnings. sales worldwide, excluding China.
Analysts had expected an average forecast of 570.1 billion yen, according to LSEG data.
Honda also raised its profit forecast by 20% to 1.1 trillion yen, as higher sales in the United States and the weak yen helped offset the group’s difficulties in China.
Honda’s operating profit rose 31 percent to 302.1 billion yen in the quarter ended in September, beating analysts’ expectations of an average of 345.3 billion yen.
The good results of the two Japanese automakers are, however, mitigated by the scale of the challenges they face in China, where they must deal with the rise of local competitors, the popularity of electric vehicles and increased pricing pressure. .
“We will seek to return our China business to a growth path despite the challenging conditions that persist,” Makoto Uchida, Nissan’s chief executive, said at an earnings conference.
Nissan shares closed 3.9% higher at 635.5 yen earlier in the day ahead of the earnings release, after a restructured alliance deal with Renault took effect on Wednesday that places the automakers automobiles on an equal footing.
Separately, Renault said on Thursday that Nissan’s contribution to its own results was estimated at 654 million euros in the third quarter.
On the Paris Stock Exchange, Renault shares rose 1.20% to 34.28 euros at 08:17 GMT.
(Reporting Daniel Leussink; Kate Entringer and Augustin Turpin, edited by Blandine Hénault)
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