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.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
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.
With 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.
