Nissan Motor on Wednesday estimated its parent-only net profit jumped 135% in the business year ended last month to account for the receipt of funds from its US unit to pay out a promised dividend of 29 yen a share, according to Reuters.
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The transfer of the US dividend to its unconsolidated financial statement, at the non-operating level, would not affect its estimates at the consolidated level, the news agency noted.
Reuters added that, based on its expectations for consolidated earnings growth, Japan’s second-biggest auto maker has committed to a per-share dividend of 29 yen for the just-ended year, 34 yen for this year, and 40 yen for 2007/08.
Japanese accounting rules stipulate that dividends be paid out by the parent company, requiring the transfer of funds to top off its unconsolidated earnings, a Nissan spokeswoman told Reuters.
Nissan reportedly said it expects 2005/06 parent net profit to total JPY240.59bn ($US2.06bn), recurring profit to rise 65.5% from the previous year to JPY337.15bn, and revenue to grow 4.8% to JPY3.719 trillion. It had given no parent-based profit forecasts.
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By GlobalDataWith 4.52bn shares outstanding, Nissan needs JPY131bn ($1.12bn) to pay dividends to its shareholders for last year, Reuters noted.
The company has projected 2005/06 consolidated operating profit of JPY870bn and net profit of JPY517bn and results are due on April 25, the report added.
