TOKYO – Nissan Motor Co., Ltd., today announced consolidated net income of 518.1 billion yen (US $4.57 billion, euro 3.78 billion), up 1.1% for the fiscal year ended March 31, 2006, a record for a sixth consecutive year.

“Nissan delivered a solid performance in fiscal 2005 despite the many challenges facing the global auto industry including higher raw material prices, higher energy costs, higher interest rates and higher incentives,” said Nissan President and CEO Carlos Ghosn. “Although we had few product introductions, we continued to grow our global sales driven by the attractiveness of our existing products and sound business fundamentals,” continued Ghosn.  

Net revenues totaled 9.428 trillion yen (US $83.21 billion, euro 68.87 billion), up 9.9%. Operating profit amounted to 871.8 billion yen (US $7.69 billion, euro 6.37 billion), up 1.2%, while the company’s operating profit margin came to 9.2%. Ordinary profit amounted to 845.9 billion yen (US $7.47 billion, euro 6.18 billion), down 1.1%.

Nissan sold a record 3,569,295 vehicles. In the US, sales advanced 6.1% despite no new models to 1,075,097 units. In Japan, sales fell 0.7% to 842,062 units. In Europe, where sales are reported on a calendar-year basis, sales amounted to 540,945 units, down 0.6%. Sales in General Overseas Markets increased 13% to 1,111,191 units.

The company’s net automotive cash position stood at 372.9 billion yen (US $3.29 billion, euro 2.72 billion) at the end of fiscal 2005.

As previously announced, Nissan will propose a 15-yen-per-share year-end dividend at the company’s annual shareholders’ meeting on June 27, 2006, for a full-year dividend of 29 yen per share for fiscal 2005.

FY05 fourth-quarter results
In the January-to-March quarter, Nissan’s net income totaled 152.4 billion yen (US $1.35 billion, euro 1.11 billion), an increase of 9.4% compared to the same period last year. Net revenues amounted to 2.636 trillion yen (US $23.27 billion, euro 19.25 billion), up 6.4%. Operating profit totaled 240.6 billion yen (US $2.12 billion, euro 1.76 billion), down 3.4%, while Nissan’s operating profit margin came to 9.1%. Ordinary profit amounted to 240.4 billion yen (US $2.12 billion, euro 1.76 billion), down 1.4%.

Nissan sold 915,662 vehicles in the fourth quarter, down 6.3% compared with last year due to lower sales in the US, Japan and Europe.

FY06 outlook
Commenting on the outlook for this fiscal year, Ghosn said fiscal 2006 would be a year of two distinct halves for Nissan.

“In the first half, growth will be hard to achieve, but in the second half we have an intensive product launch offensive that will last through the remainder of Nissan Value-Up and beyond,” he said. “Our second-generation products are especially attractive and competitive and I expect them to make significant contributions to our business development.”

Nissan will release a total of nine all-new models during fiscal 2006. Three will be launched in the US, including the all-new Altima, Sentra and Infiniti G35 sedans.

Nissan will also continue with the global expansion of Infiniti, with the launch of the luxury brand in Russia in September. The brand, which is currently marketed in North America, Taiwan, the Middle East and Korea, will also go on sale in China in 2007 and across Europe during 2008.

Expansion into new and emerging markets will accelerate during the remainder of Nissan Value-Up. In Russia, Nissan today announced plans to invest US $200 million (22.66 billion yen, euro 165.52 million) into a new manufacturing facility. Located in St. Petersburg, the new greenfield-site plant will start production in 2009. This decision is subject to the approval of a specific government agreement. 

Ghosn said rising raw material costs, rising energy prices and volatile foreign exchange rates would remain among the business risks for fiscal 2006.

Based on this outlook and assuming foreign exchange rates of 110 yen/dollar and 135 yen/euro, Nissan filed the following forecast for the fiscal year ending March 31, 2007, with the Tokyo Stock Exchange:

  1. consolidated net revenues of 10.075 trillion yen;
  2. operating profit of 880 billion yen;
  3. ordinary profit of 870 billion yen; and
  4. net profit of 523 billion yen.

Note:  Amounts in dollars and euros are translated for the convenience of the reader only at the foreign exchange rates of 113.3 yen/dollar and 136.9 yen/euro, the average rates for the fiscal year ending March 31, 2006.