TM Toyota Motor Corporation

YOKOHAMA—Nissan Motor Co.'s quarterly net profit grew 25% from a year earlier after strong sales in the U.S. and Europe offset slowdowns in emerging markets.

Nissan, Japan's second-biggest auto maker by global sales volume after Toyota Motor Corp., posted ¥ 127.2 billion ($1.1 billion) in third-quarter net profit, above with a mean estimate of ¥ 120.2 billion, according to analysts surveyed by Thomson Reuters. It booked ¥ 3.0 trillion in quarterly revenue, up 2.2% from a year ago.

In 2015, Nissan posted solid vehicle sales in its two biggest markets, the U.S. and China, but both markets face uncertainties ahead. In the U.S., Nissan sold a record 1.48 million vehicles in 2015, up 7.1% from a year ago. Chief Executive Carlos Ghosn said last month he expects the U.S. market's volume growth to slow to about 1% in 2016 from last year's 5.7%, and some analysts say the market is nearing its peak.

In China, Nissan's sales rose 6.3% in 2015 to 1.25 million vehicles, backed by new models such as the Lannia sedan, as well as by tax incentives for small cars. Concerns are growing over China's cooling economy, but Mr. Ghosn said the Chinese market is likely to grow 4%-5% in 2016.

Meanwhile, Nissan has been hit by declining demand in emerging markets such as Russia and Brazil, as well as in Japan. Sales in Russia plunged 29.4% last year while those in Japan fell 12.1%. Both countries are unlikely to recover rapidly, auto executives have said.

Nissan is aiming for an 8% operating profit margin by March 2017 under its previous accounting standards. In April-September, the margin was 7.2% under the same standards.

Write to Yoko Kubota at yoko.kubota@wsj.com

(END) Dow Jones Newswires

February 10, 2016 04:05 ET (09:05 GMT)

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