HMC Honda Motor Co Ltd

Nissan Motor Co. (NSANY) revealed that it anticipates production level to go up by 20% at its Mexican operations in 2011 compared with 2010. In 2010, it produced 506,494 vehicles.

The company has considered Mexico as one of its fast-growing markets like Brazil in Latin America. It is the second-biggest automaker in the country after General Motors Company (GM).

Recently, Nissan provided its guidance for fiscal year ended March 31, 2012. The company revealed that it expects a 15.4% fall in profit to ¥270 billion ($3.4 billion) due to the setback from the earthquake and tsunami in Japan on March 11 that broke down infrastructure and damaged many parts supplying companies’ plants causing disruptions in the supply chain.

The Japan’s third largest automaker also anticipates a 14.4% dip in operating profit to ¥460 billion ($5.73 billion) due to the same reason. For the fiscal year ended March 31, 2011, the automaker reported more than sevenfold increase in profit to ¥319.2 billion ($3.94 billion) from the previous fiscal year. Its sales increased 17% to ¥8.77 trillion ($108 billion) during the year.

Nissan sold 4.185 million vehicles during the year, an increase of 19.1% from 3.515 million vehicles in the previous year. The company’s sales in its largest market, China, surged 35.5% to 1.02 million vehicles.

Almost all the major Japanese automakers, including are plagued by the natural disaster in the country. They have suspended and cut down their production in the wake of plant outages and parts supply shortage. These actions will undoubtedly lead to lower revenues and earnings.

Nissan’s home country rival Toyota Motor Corp. (TM) projected a 31% drop in full year profit to ¥280 billion ($3.5 billion) from ¥408 billion a year ago driven by lower sales on account of the earthquake in Japan and stronger yen.

On the other hand, Honda Motor Co. (HMC) expects a stark 63.5% drop in profit to ¥195 billion ($2.4 billion) for the fiscal year from ¥534 billion recorded in the previous fiscal year.

 
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