Nissan returns to profit on sales growth

By YURI KAGEYAMA AP Business Writer

TOKYO (AP) - Nissan Motor Co. veered back into the black in its latest quarter as global auto sales rebounded, putting the company on track to meet its yearly profit target.

Yokohama-based Nissan, maker of the Leaf electric vehicle and the March compact, said Thursday its profit was 106.6 billion yen ($1.2 billion) for the April-June quarter, the first of its fiscal year. It lost 16.5 billion yen the same period the previous year.

Quarterly sales surged 35.3 percent to 2.050 trillion yen ($23.6 billion).

"First quarter results for Nissan are good, and our recovery is vigorous and ahead of schedule," said Nissan Chief Executive Carlos Ghosn, who also serves as chief executive of alliance partner Renault SA of France.

He said challenges remained because of uncertainty about the recovery, soaring material costs and volatile exchange rates. But he said demand for Nissan's cars remained strong.

Nissan, neck and neck with Honda Motor Co. for the status of Japan's No. 2 automaker after Toyota Motor Corp., sold 954,000 vehicles during the quarter around the world, up 32 percent from the same period in fiscal 2009.

During this fiscal year, Nissan plans to introduce 10 models, including the zero-emission Leaf. The Juke compact sports crossover went on sale in June and has been recording healthy sales, according to Nissan.

Nissan is expecting net profit of 150 billion yen ($1.7 billion) for the fiscal year ending March 31, 2011.

"We are confident to achieve our fiscal year 2010 forecast," said Ghosn.