Nissan profits drop 15 percent due to strong yen

  • Nissan has reported a 15 percent decrease in net profit in the first quarter after a strong yen affected its results.

    Net income was $900 million in the April-to-June period. Revenue however, rose 2.6 percent to $27.3 billion.

    Despite the drop, the Japanese carmaker remains optimistic as sales continue to grow due to the popularity of its models.

    Nissan sold 1.2 million vehicles worldwide in the first quarter, a 14.6 percent increase compared to the previous year. It expects to sell a total of 5.35 million this year.

    A stronger currency hits profits when overseas earnings are repatriated back home. The yen hovered near record highs reached against the dollar last year.

    To offset the poor exchange rate, Nissan has shifted its production abroad to Thailand, which has become a crucial production hub for Japanese companies.