After Japan Earthquake 2011
June 23, 2011 by staff
After Japan Earthquake 2011, Nissan Motor Co., the second largest Japanese automaker, expects full-year profit to decline after the nation’s earthquake disrupted production and record sales, while the yen strengthened.
Net income may fall to 270 billion yen (3.36 billion and) in the 12 months to March 31 of ¥ 319.2 billion a year earlier, the Yokohama-based company said in a statement. That was above the average of ¥ 237 billion of fiveanlyst estimates compiled by Bloomberg in the last 28 days.
Japanese automakers are increasing production while recovering from March 11 of natural disasters those automobile factories and plants damaged parts, resulting in a drop of 60 percent of domestic vehicle production in April. Nissan expects to resume full production worldwide in October.
Global sales of Nissan vehicles can increase by 9.9 percent to 4.6 million this fiscal year to 4.19 million years past, the company said. Income may increase to ¥ ¥ 9400000000000 8770000000000 years.
Automakers are hiring temporary workers to help fill the backlog, as production recovers. Toyota Motor Corp. plans to hire as many as 4,000 people since mid-July while preparing to increase production in October. Nissan has begun hiring up to 200 additional temporary workers.
Nissan aims to add more days of operation in July to recover the lost production, the company said earlier this week.
Chief Executive Carlos Ghosn said yesterday that plans to localize production of components such as engines and transmissions in different markets face less resistance at Nissan after the earthquake. Interruption after the departure of disasters March affected plants abroad, and the Japanese.
A Nissan engine plant in Fukushima Prefecture was damaged in the earthquake and was closed until April 17.
For the full year profits of Toyota, the largest automaker in Japan, may decrease by 31 percent to 280 billion yen in the year started April 1 that global vehicle sales decreased 0.9 percent to 7 24 million, the city of Toyota, based company said June 10.
Nissan shares rose 1.3 percent to 839 yen at the close of trading at 3 pm in Tokyo before the announcement. The shares have gained 8.5 percent this year.
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