Nissan Motor said on Thursday (12 May) it had increased full fiscal year revenues and profitability as rising demand for new products in North America, western Europe and China offset the impact of negative foreign exchange movements and slowing or declining sales in emerging markets.
Operating profit for the year to 31 March, 2016 rose over 34% to US$6.6bn (JPY793.3bn) for a 6.5% margin on revenues that reached $101.4bn (JPY12.19 trillion) for the period.
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On a management pro-forma basis, which includes the proportionate consolidation of results from Nissan’s joint venture operation in China, net revenues increased to JPY13.4 trillion in fiscal 2015, up 7.7% year-on-year. Pro-forma operating profit rose by 30.2% to JPY935.5bn compared with fiscal 2014, a profit margin of 7.0%.
Globally, Nissan sold 5.42m vehicles in the period, a 2% rise year-on-year.
“These solid results reflect the success of our continuing product offensive, particularly in the North American market,” said Carlos Ghosn, president and chief executive officer. “Encouraging demand for new models, combined with continued cost efficiency, helped us withstand currency headwinds and volatile trading conditions in several emerging markets.
“In the coming year, we will deliver further product innovation – particularly in autonomous-drive systems – and rising synergies from the Renault-Nissan Alliance. Looking ahead, we expect continued improvement in Nissan’s underlying performance as we focus on the demanding goals of the Power 88 mid-term plan. However, we have adopted a cautious outlook for the current fiscal year given continuing market and exchange rate volatility.”
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By GlobalDataFY2016 Outlook
Nissan expects to sell 5.6m units in fiscal 2016, up 3.3% and equivalent to global market share of 6.3%.
Recently launched models including the Nissan Maxima, Altima, Titan pick-up truck, and Infiniti QX30 are expected to contribute to global sales growth in the coming year.
Calculated under the equity accounting method for the joint venture in China, the forecasts for the fiscal year ending March 31, 2017 are: net revenue, JPY11.8 trillion ($112.4bn/EUR98.3bn); operating profit, JPY710.0bn; ($6.8bn/EUR5.9bn); ordinary profit, JPY800bn ($7.6bn/EUR6.7bn) and net income, JY525bn ($5.0bn/UR4.4bn).
Forecasts are based on exchange rates of JPY105/USD and JPY120/EUR.
