Nissan is forecasting a further drop to operating profit in the current fiscal year following a 22.6% decline in fiscal year 2017 (year to March 31, 2018).
For the full year, Nissan generated an operating profit of 574.8 billion yen (-22.6%) on net revenues of 11.95 trillion yen (+2.0%), equivalent to an operating margin of 4.8%. Adverse currency movements and higher costs hit the company last year.
Go deeper with GlobalData
For the current fiscal year ending March 31, 2019, Nissan forecasts operating profit at 540 billion yen, 6% down on the previous year.
Nissan said that for the first nine months of the fiscal year, the company faced significant costs associated with special items, inventory adjustments and negative pricing trends; however, a partial recovery was achieved due to solid performance in the final three-month period, the company said.
In common with Toyota and other Japanese firms, the strong yen is expected to dent Nissan's bottom line as repatriated earnings are worth less when converted to yen.
However, Nissan expects a 2.7% increase in global vehicle sales to 5.925m units as higher sales in China counter declining sales in the US.
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 fiscal year 2017, the company launched its Nissan M.O.V.E. to 2022 mid-term plan, and global unit sales rose 2.6% to record high unit sales of 5.77 million units.
Sales in Japan rose by 4.8% to 584,000 units mainly from contribution of the launch of the core models of Nissan Intelligent Mobility: the NOTE e-POWER and the new Nissan LEAF.
In China, where Nissan reports figures on a calendar-year basis, unit sales rose 12.2% to 1.52 million units, equivalent to a market share of 5.6% – driven by demand for models including the Nissan X-Trail and Sylphy, as well as the growth of the Venucia brand.
In the US, Nissan's sales reached 1.59 million units, equivalent to a market share of 9.2%.
Nissan sales in Europe, excluding Russia, fell by 4.6% to 652,000 units, impacted by the market decline in the UK and intensified competition in the crossover segment – both of which have been areas of strength for Nissan – which resulted in a market share of 3.6%. Unit sales in Russia, however, rose 12% to 105,000 units.
In other markets, including Asia and Oceania, Latin America, the Middle East and Africa, Nissan's sales rose 1.3% to 819,000 units.
The company expects to sell 5.925 million units in fiscal year 2018. Recently-launched models including the Serena e-POWER, the new Nissan LEAF, the Datsun CROSS and the INFINITI QX50 are expected to contribute to sales growth in this financial year. Sales in fiscal year 2018 are also expected to be enhanced by the launch of new models including the Altima, Sylphy Zero Emission and Terra.
