NISSAN says strong demand has helped lift income – but bosses have warned profits may drop as it grapples with foreign exchange rates and weaker markets.
The Sunderland car maker saw net income rise to £4.5bn (663.5bn yen) in the year to March 31, though operating profit fell 6.4 per cent on 12 months ago to £5bn (742.2bn yen).
Officials say the latter figure could dip again in its next financial period, forecasting the number to come in at £4.7bn (685bn yen).
The business, which will make next generation Qashqai and X-Trail models at its near 7,000-strong job Wearside plant, sold 5.63 million vehicles globally last year.
Demand in Europe, excluding Russia, saw sales increase 7.2 per cent to 683,000, with existing Sunderland-made Qashqais a strong draw.
But, despite similar rises in China and the US, the company was affected by “challenging conditions” in its Japanese homeland, where sales of Kei cars were suspended for a period, and falling sales across regions including Asia, the Middle East and Africa. Nissan’s Sunderland plant will soon make new Qashqais and X-Trails, though the firm has warned it will review its Wearside plant once the workings of a Brexit deal are finalised.
The business previously hinted future Qashqai production could hinge on a Downing Street EU compensation package for any export tariffs and financial hardship caused.
However, following subsequent Government talks, the company rowed back, leading some critics to claim the move was a result of a sweetheart deal, something Nissan has always denied.
It is understood work on the new Qashqai could start in 2018, while it will be the first time the 4x4 X-Trail has been built for European markets outside of Japan.
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