TOKYO – Nissan Motor Co., Ltd., today announced that consolidated net income after tax totaled 52.8 billion yen (US $505 million, euro 323 million) in the first quarter of fiscal year 2008, ending March 31, 2009, down 42.8% compared with the same period a year ago. The drop in net income is due mainly to a reduction in operating profit driven by the 54.7 billion yen negative impact of foreign exchange rates and provisions booked for residual value risk on leased vehicles in the U.S. and Canada for 2008, 2009 and 2010, amounting to 42 billion yen.
Globally, Nissan sold a total of 936,000 vehicles in the April-to-June period, up 6.9% compared to same period in 2007. In North America, sales were 330,000 units, up 1.9%. Sales in the United States were 253,000 units, down 1.5% in a market which was down by 12.0%; Nissan's market share in the U.S. grew by 0.7 percentage points to 6.6%. In Japan, sales were 148,000 units, down by 2.2%. European sales remained flat at 156,000 units. Growth continues to derive from the General Overseas Markets with sales up by 23.6% to 302,000 units.
Despite an increase in sales volume, Nissan's net revenue fell 4.1% to 2.3473 trillion yen (US $22.44 billion, euro 14.37 billion) due mainly to the negative impact of foreign exchange rates. Operating profit totaled 79.9 billion yen (US $764 million, euro 489 million), down 46.1%. The decline was driven by foreign exchange and residual value risk. The operating profit margin came to 3.4%. Ordinary profit amounted to 82.5 billion yen (US $789 million, euro 505 million), down 45.5%.
“In the face of the severe operating environment, Nissan remains resilient but cautious on the outlook for our industry,” said Nissan President and CEO, Carlos Ghosn. “We have identified the major risks and taken actions to address them, particularly in the U.S. market.”
In 2008, Nissan will launch a total of nine all-new products globally. The first quarter saw the launch of three products Teana, Maxima and Infiniti FX. Under the NISSAN GT 2012 mid-term business plan, Nissan will launch 60 all-new models in the next five years.
Nissan's forecast remains unchanged for the full fiscal year with an operating profit of 550 billion yen and net income of 340 billion yen.
Note: Amounts in dollars and euros are translated for the convenience of the reader at the foreign exchange rates of 104.6 yen/dollar and 163.4 yen/euro, the average rates for the fiscal year to date.
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