Chinese Backlash Against Japan Hurts Nissan Too

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By Trey Thoelcke Published
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Nissan became the latest Japanese company to say that a territorial dispute between its nation and China will badly hurt earnings. At some point, the Japanese government must decide whether ownership of a few small islands is worth the damage to many of its largest corporations. Nissan reported, similarly to Toyota Motor Corp. (NYSE: TM) and Honda Motor Co. Ltd. (NYSE: HMC):

[I]n the first half it had an operating profit of 287 billion yen, or $3.61 billion, down 7.3% from the same period last year.

Chief Operating Officer Toshiyuki Shiga said the latest figures were positive, considering the challenging period for the company.

“Nissan has delivered solid results in the first half despite the continued appreciation of the yen, volatility of the macro-economy and particularly difficult conditions in Europe,” said Shiga. “The operating margin was still respectable at 6.3%.”

Japan’s No. 2 carmaker by sales revised down its operating profit forecast for the full year 18%, factoring in impact of the yen and Europe, as well as a disruption of sales in China.

Demand has slumped in the world’s biggest auto market as Chinese consumers shunned Japanese cars amid a territorial row over the Senkaku, or Diaoyu, Islands.

Douglas A. McIntyre

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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