Yulon Nissan Reports Doubled Core-biz Earnings in 2013

Yulon Nissan Motor Co., a joint venture between domestic Yulon Group and Japanese automaker Nissan, and the local agent of Nissan and Infiniti, recently announced its 2013 core-business earnings had doubled previous year's to about NT$1.8 billion (US$60 million). This year, the auto vendor aims to sell more Infinitis to further upgrade profitability.

The company attributes its core-business profit gain to support from Nissan Japan and the appreciation of the Japanese Yen, which effectively strengthens the competitiveness of some imported models, such as the Nissan Juke and Rogue, leading to better-than-expected sales.

In conjunction with last year's success in sales of imported Nissans, Yulon Nissan plans to more aggressively develop sales of imported Infiniti luxury cars. This year, the company targets to sell 1,000 Infinitis in Taiwan, and will introduce more models to widen its lineup. Yulon Nissan has introduced the Q60, Q70 to local consumers, and plans to push the Q50 Turbo and PHEV into the domestic market.

Yulon Nissan began vending the imported Nissan Juke crossover  in mid-2013 and immediately won stronger-than-expected market responses, driving it to ask for more quota for the imported Rouge sport utility vehicle (SUV), which also sells well. The company's sales of imported Nissan and Infiniti in 2013 increased by about 10%, and the growth is expected to continue in 2014 alongside more new models to be introduced.

Thanks to lucrative return on investment from China, mainly from affiliate Dongfeng Nissan, Yulon Nissan registered pretax earnings of NT$6.07 billion (US$202.4 million), after-tax net earnings of NT$5.04 (US$167.9 million), and net earnings per share (EPS) of NT$16.8 (US$0.56) in the first three quarters of 2013. The firm's Q3 earnings have outstripped its 2012's. In the fourth quarter, Yulon Nissan is expected to continue to enjoy eye-catching results, pushing up its annual profits to another new high.

In the imported luxury segment of Taiwan's automobile market, Lexus has been outselling its Japanese counterpart Infiniti. The sharp appreciation of the Japanese Yen and steadily expanding imported-car sales in Taiwan have been attracting local agents of international luxury car brands to pour more resources to develop sales channels on the island. In 2013, total market share of imported cars increased to about 30%, and total imported-car sales grew by about 20%, compared to only 3% of the overall market.

Yulon Nissan's Revenue & Earnings (2010-2013)
	2010	2011	2012	2013
Revenue	NT$27.46 billion	NT$32.12 billion	NT$29.13 billion	NT$31.48 billion
Net Earnings	NT$2.88 billion	NT$3.83 billion	NT$4.93 billion	NT$5.04 billion (Jan.-Sept.)
EPS	NT$9.61	NT$12.77	NT$16.43	NT$16.79 (Jan.-Sept.)
Source: Taiwan Stock Exchange (TSE)'s Market Observation Post System (MOPS)