Nissan Motor has reported consolidated net income up 1.1% to JPY518.1bn ($US4.57bn, EUR3.78bn), for fiscal year ended 31 March, 2006, a sixth consecutive record.
Go deeper with GlobalData
Net revenues rose 9.9% to 9.428 trillion yen. Operating profit was up 1.2% to 871.8bn yen and the operating profit margin was 9.2%.
Ordinary profit was down 1.1% to 845.9bn yen.
Nissan sold a record 3,569,295 vehicles. In the US, sales rose 6.1%, despite no new model launches, to 1,075,097 units.
In Japan, sales fell 0.7% to 842,062 units.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataIn Europe, where sales are reported on a calendar-year basis, sales were 540,945 units, down 0.6%. Sales in other export markets increased 13% to 1,111,191 units.
“Nissan delivered a solid performance in fiscal 2005 despite the many challenges facing the global auto industry including higher raw material prices, higher energy costs, higher interest rates and higher incentives,” said company president and CEO Carlos Ghosn.
As previously announced, Nissan will propose a 15-yen-per-share year-end dividend at the company’s annual shareholders’ meeting on 27 June, taking the full-year dividend to 29 yen per share.
In the January-to-March fourth quarter, Nissan’s net income was up 9.4% year on year to JPY152.4bn. Net revenues were up 6.4% to 2.636 trillion yen and operating fell 3.4% to 240.6bn yen. Operating profit margin was 9.1% and ordinary profit fell 1.4% to 240.4bn yen.
Nissan vehicle sales fell 6.3% to 915,662 units in the fourth quarter due to lower sales in the US, Japan and Europe.
Ghosn said fiscal 2006 would be a year of two distinct halves for Nissan.
“In the first half, growth will be hard to achieve, but in the second half we have an intensive product launch offensive that will last through the remainder of Nissan Value-Up and beyond,” he said. “Our second-generation products are especially attractive and competitive and I expect them to make significant contributions to our business development.”
Nissan will release nine new models during fiscal 2006. Three will be launched in the US, including the Altima, Sentra and Infiniti G35 sedans.
Nissan will also continue with the global expansion of Infiniti, with the launch of the luxury brand in Russia in September. The brand, which is currently marketed in North America, Taiwan, the Middle East and Korea, will also go on sale in China in 2007 and across Europe during 2008.
Expansion into new and emerging markets will accelerate during the remainder of Nissan Value-Up. In Russia, Nissan has just announced plans for a $US200m manufacturing facility in St. Petersburg, starting production in 2009.
Ghosn said rising raw material costs, rising energy prices and volatile foreign exchange rates would remain among the business risks for fiscal 2006.
Assuming foreign exchange rates of 110 yen/dollar and 135 yen/euro, Nissan expects consolidated net revenues of 10.075 trillion yen; operating profit of 880bn yen; ordinary profit of 870bn yen; and net profit of 523bn yen.
