YOKOHAMA, Japan -

As Honda and Toyota run into production delays due to the Thailand floods, it appears Nissan could be well-positioned to gain ground. In fact, Nissan’s chief operating officer just raised the automaker’s full-year forecast on Wednesday.

Though Toshiyuki Shiga took a cautionary tone, Nissan revised up its full-year forecast to net income $3.63 billion, based on average exchange rates of 80 yen to the dollar, and 110 yen to the euro, for the second half of the year.

"As we look forward to the second half of this fiscal year, we remain confident in Nissan’s ability to deliver improved retail volumes and solid revenues despite challenging market conditions," Nissan’s COO said. “We will deliver significant profits reflecting continued operational momentum and financial discipline, although the impact of the strong yen will continue to impact our full-year fiscal 2011 forecasts."

The Nissan executive went on to point out that the strong yen remains a factor, despite recent Japanese currency intervention.

"Clearly Nissan faces a number of risks in the second half, but we also see significant opportunities ahead. The risks are derived mainly from continued foreign exchange difficulties, the flooding in Thailand and general signs of global economic slowing," he said.

For its part, Nissan North America announced another record for October sales, up 22.1-percent on a year-over-year basis, to more than 75,000 units.

Edmunds.com’s Bill Visnic explained, “Nissan’s record October sales show the company not only has a product range and price point that currently is well-aligned with consumer demand, but that the company probably still is enjoying an advantage in vehicle availability, compared with chief rivals Toyota and Honda.

“Considering that the Thailand flooding may further prolong inventory shortages for Toyota and Honda, Nissan may extend its supply advantages through the end of the year,” Visnic continued.

Jessica Caldwell, also of Edmunds, pointed out, “When it comes to incentives, Nissan significantly outspends its two Japanese rivals. It’s spend is closer to Ford and Chrysler than to Honda and Toyota.”

And Michelle Krebs, of the same company, added “Nissan had a strong month with three of its volume models setting record sales for October: Altima, Versa and Rogue. Despite the automotive press dismissing the 2012 Nissan Versa sedan, it is selling like hotcakes.”

Nissan’s First-Half Results

In the six months through September, net income after taxes totaled 183.4 billion yen (U.S. $2.30 billion, euro 1.61 billion), down 12.0 percent compared with the same period last year.

Net revenues were 4.3674 trillion yen (U.S. $54.73 billion, euro 38.41 billion) in the April-to-September period, up 1.1 percent compared with a year ago. Operating profit was down 7.5 percent, to 309.7 billion yen (U.S. $3.88 billion, euro 2.72 billion), resulting in an operating profit margin of 7.1 percent. Ordinary profit was 295.4 billion yen (US $3.70 billion, euro 2.60 billion), down by 6.3 percent.

In the first half, Nissan sold 2,225,000 vehicles worldwide, up 10.7 percent compared with last year.

"Nissan has once again delivered strong first-half earnings and healthy profit margins, reflecting the innovation and consumer appeal of our vehicles in all markets around the world," said Carlos Ghosn, Nissan president and chief executive officer.

"In spite of unfavorable currency fluctuations, numerous natural disasters and a volatile global economy, we remain on track to deliver a significantly profitable full-year performance,” he added.

In the July-to-September second quarter, Nissan’s net income was 98.4 billion yen (U.S. $1.26 billion, euro 0.89 billion). Net revenues were 2.2855 trillion yen (U.S. $29.34 billion, euro 20.74 billion), up 0.7 percent compared with a year ago. Operating profit was 159.3 billion yen (U.S. $2.04 billion, euro 1.45 billion), resulting in an operating profit margin of 7.0 percent. Ordinary profit was 147.7 billion yen (U.S. $1.90 billion, euro 1.34 billion).

Nissan sold 1,169,000 vehicles in the second quarter, up 10.8 percent compared with the prior year.

According to the company, based on a foreign-exchange rate assumption of 80 yen/dollar and 110 yen/euro for the second half of fiscal year 2011, the revised average rates will be 79.9 yen/dollar and 111.9 yen/euro for fiscal year 2011.

Nissan has revised its full-year forecast for fiscal 2011 upward and filed the following forecast with the Tokyo Stock Exchange for the fiscal year ending March 31, 2012:

—Net revenues of 9.45 trillion yen (U.S. $118.27 billion, euro 84.45 billion).
—Operating profit of 510 billion yen (U.S. $6.38 billion, euro 4.56 billion).
—Ordinary profit of 480 billion yen (U.S. $6.01 billion, euro 4.29 billion).
—Net income of 290 billion yen (U.S. $3.63 billion, euro 2.59 billion).
—Capital expenditures of 410 billion yen (U.S. $5.13 billion, euro 3.66 billion); and
—R&D expenses of 440 billion yen (U.S. $5.51 billion, euro 3.93 billion).
 

To see how Nissan is faring against the competition, especially in the U.S. market, click here.