Nissan is forecasting a drop of 15% in net income for the current fiscal year to March 31 2012 as margins are squeezed by a strong yen and higher material costs.
Net income is projected at JPY270bn, 15% down on the previous year’s JPY319.2bn.
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Operating profit is forecast at JPY460bn, which compares with JPY537.5bn in the previous fiscal year.
However, net revenues for Nissan are forecast at JPY9.4 trillion, 7% ahead of the previous fiscal. The company is forecasting global sales for fiscal year 2011 to be 4.6m units, an increase of 9.9% compared to the previous year, and is planning to double dividend payments for fiscal year 2011 to 20 yen for the full year.
Nissan anticipates a return to full unrestricted production in October, as parts suppliers fully recover from the earthquake on March 11.
In an official statement, Nissan President and CEO Carlos Ghosn highlighted the record volume projection.
“Continuous growth in 2011 will bring Nissan a new record volume,” he said.
“The unrelenting work ethic of Nissan employees is an inspiration – particularly after one of the worst natural disasters in modern history. The high level of motivation and performance of our Nissan team continues to be the foundation of our success.”
