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.
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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).
