Skip to main content

Nissan profit rises on strong sales, cheap yen

By WTOP Staff

YURI KAGEYAMA
AP Business Writer

TOKYO (AP) — Nissan’s quarterly profit rose nearly 37 percent, helped by a favorable exchange rate and healthy sales in North America and China.

Nissan Motor Co. reported Monday a better-than-expected net profit of 112 billion yen ($1.1 billion) for the April-June first fiscal quarter, up from 82 billion yen a year earlier. Analysts surveyed by FactSet had forecast a quarterly profit of 85 billion yen ($835 million). Quarterly sales jumped 10 percent to 2.466 trillion yen ($24.2 billion).

Nissan’s vehicle sales grew in the robust North American market, on solid demand for the Rogue crossover and the Altima sedan, offsetting shaky Japan, where a rise in the consumption tax dampened sales overall.

“Nissan continued to make progress in the first three months of the fiscal year as encouraging demand for new products, benefits from recent plant investments, and improving market conditions in North America, China and Europe combined to lift both revenues and profits,” said Carlos Ghosn, president and chief executive officer.

Yokohama-based Nissan kept its full year forecasts unchanged at a 405 billion yen ($4 billion) net income and 10.79 trillion yen ($106 billion) sales. The profit figure would represent a 4 percent increase from the previous year and the sales figure a 3 percent increase.

Nissan sold 1.24 million vehicles globally during the first quarter, a 6 percent rise from the previous year.

Nissan has stepped up its global expansion, opening new plants in Brazil, Indonesia and Thailand and other emerging markets where it sees strong growth.

But Nissan, which makes the Infiniti luxury model, March subcompact and Leaf electric car, is also doing will in the U.S., a developed market.

Its U.S. sales volume grew 14 percent from the previous year, and Nissan’s market share in the U.S. edged up by 0.5 points to 7.9 percent.

Nissan is also holding up in Europe, boosting vehicle sales in Russia by 31 percent.

The automaker sold fewer vehicles in Japan, where demand waned following an April 1 sales tax hike. Its market share increased by 0.1 point to 11.5 percent.

The cheap yen continued to boost Nissan’s earnings. Japanese exporters get a perk because it lifts the value of overseas earnings. Nissan said the company gained several billion yen in operating profit from the currency rate but declined to give a specific number.

Nissan said its green image was enhanced by the accolades for its zero-emission Leaf electric vehicle.

Nissan has now sold 124,000 Leaf vehicles, still a niche market but significant as a plus for its image because of the concerns about global warming and the environment, according to the automaker.

Nissan boasts one of the most successful alliances in the auto industry with Renault SA, and sharing common basic parts on which the products are manufactured has been a key part of its strategy, helping slash costs.

Honda Motor Co. reports earnings Tuesday. Toyota Motor Corp. reports Aug. 5.

___

Follow Yuri Kageyama on Twitter at twitter.com/yurikageyama

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
Read Next Story

Related News

Frustration grows in Venezuela as earthquake death toll reaches 1,430

Israel and Lebanon sign framework agreement with US in ‘first step’ toward peace, Rubio says

Trump-endorsed populist poised to become Colombia’s next president as rival challenges vote