Nissan returns to profit in Oct-Dec quarter

[February 09, 2010]  TOKYO (AP) -- Japanese carmaker Nissan Motor Co. said Tuesday it booked a profit in the October-December quarter after a deep loss a year earlier, and now expects to be in the black for the full fiscal year.

The company posted a 44.97 billion yen ($502 million) net profit in its third quarter, versus a 83.16 billion loss a year earlier. Sales increased to 2.00 trillion yen from 1.82 trillion yen.

Nissan revised its earnings forecast for the full fiscal year, and now sees a profit of 35 billion yen, versus a forecast of a 40 billion yen loss it made in November. It also upped its sales target to 7.4 trillion from 7.0 trillion.

During its third quarter, the company was able to climb back to a profit through an increase in sales, along with major cost cutting in areas such as advertising and sales. It also said it got a boost from expanding markets, including China.

The increased profitability is helping it squeeze more profit from lower revenues over the fiscal year. For the first nine months of the fiscal year, the company increased its net profit 25 percent from a year earlier, to 53.97 billion from 43.18 billion, even as sales fell 20 percent.

Nissan has been struggling during the global economic downturn, but climbed back into the black during the previous July-September quarter.

[Associated Press; By JAY ALABASTER]

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