JAPAN: Exchange rates, US lease losses, hit Nissan Q1
Nissan Motor first quarter consolidated net income dropped 42.8% year on year to JPY52.8bn (US$505m, €323m) as operating profit fell due to a JPY54.7bn negative hit from foreign exchange rates and provisions booked for residual value falls on leased vehicles in the US and Canada for 2008, 2009 and 2010, totalling JPY42bn.
Nissan sales worldwide rose 6.9% to 936,000 vehicles. North America volume was up 1.9% to 330,000 units but US sales fell 1.5% to 253,000 units in a market off 12.0%.
Japan sales fell 2.2% to 148,000 units and European sales were flat at 156,000 units. 'General overseas markets' continued to grow with sales up 23.6% to 302,000 units.
But, despite the increase in unit volume, Nissan's net revenue fell 4.1% to JPY2.3473 trillion yen ($22.44bn, €14.37bn) as unfavourable foreign exchange rates hit.
Operating profit was off 46.1% to JPY79.9bn ($764m, €489m) due to the foreign exchange and residual value risk costs mentioned above.
Operating profit margin was 3.4% and ordinary profit was down 45.5% to JPY82.5bn ($789m, €505m).