Dubai: Japanese automobile manufacturer Nissan, said it its net profits remained flat despite a 1.4 per cent growth in sales reaching $116.16 billion last year from 4.914 million units.

The company’s net profit of $4.13 billion was helped by a weak yen in the fourth quarter. The company, partly owned by Europe’s Renault, introduced ten new models, including the new Altima in the United States; Sylphy in China; and the Note in Japan.

“Fiscal 2012 was marked by both successes and challenges for Nissan. We ended the year with a sound balance sheet, record global sales, an improved brand, and an expanded presence in critical growth markets,” Carlos Ghosn, Nissan President and Chief Executive Officer, said in a statement “Equally important, we have taken countermeasures that will enable us to navigate the headwinds that lie ahead and resume significant growth. As we enter the third year of the Nissan Power 88 mid-term plan, I am confident we have the right strategy in place to deliver on our business objectives.”

Looking at sales performance in global markets, sales in the US were up 5.4 per cent to 1.14 million units. Sales volume in China, where sales of Japanese brands have been impacted by the bilateral territorial dispute, declined 5.3 per cent year-on-year to 1.18 million vehicles. Across Europe including Russia, sales were 660,000 units, falling 7.5 per cent. In Japan, sales were down 1.3 per cent to 647,000 units. Strong results were reported in other markets, including Thailand, Brazil, and the Middle East; sales totalled 959,000 units, up 16.3 per cent over the prior year.

Zero emission

Nissan solidified its position as the leading automaker for electric vehicles and zero-emission mobility during the fiscal year. More than 62,000 Nissan LEAF units have been sold worldwide since the product’s launch. During 2012, Nissan launched production in the US and the UK to increase the ability to grow global sales.

The global sales forecast for fiscal year 2013 is 5.3 million units, an increase of 7.8 per cent. Nissan plans to launch several new vehicles during fiscal 2013; among them will be the first new model of the Datsun brand.

Based on this sales outlook and an exchange rate of 95 yen to the dollar and 122 yen to the euro, Nissan projected revenue to be $117.89 billion and net income to be $4.42 billion.

“Compared with its rivals, Nissan faces several uncertain factors, including its relations with Renault, its electric vehicle strategy and the China issue,” said Tatsuya Mizuno, auto analyst with Mizuno Credit Advisory.

Japan’s automakers suffered from a diplomatic row between Tokyo and Beijing that sparked huge riots across China and a damaging consumer boycott of Japanese brands.

Nissan’s sales to China, which make up almost one-quarter of its total sales, far higher than its domestic rivals, fell 5.3 per cent on-year to 1.18 million vehicles, it said.

With inputs from AFP