JAPAN: Nissan H1 net off 3.4%

By just-auto.com editorial team | 28 October 2005

Fiscal half-year net income after tax at Nissan Motor dropped 3.4% to 230.7bn yen (US$2.11bn, EUR1.69bn), compared with the same period last year due to one-time charges in the first quarter.

The charges related to a change in Japanese accounting standards for the treatment of fixed assets and the introduction of Nissan's defined contribution pension plan.

Net revenues reached 4.491 trillion yen for the April-to-September H1 period, up 12.1% compared with a year ago.

Operating profit rose 2% to 411.5bn yen while Nissan's operating profit margin came to 9.2%. Ordinary profit of 395.6bn yen was down 1.4%.

"Despite the severe business environment, Nissan's fundamentals continue to strengthen thanks to appealing products and a competitive cost structure," said Nissan president and CEO Carlos Ghosn. "Taking into account the risks and opportunities, we see no compelling reason to change our initial financial forecasts for the full fiscal year," he added.

In the first half, Nissan sold 1,834,000 vehicles worldwide, up 15% compared with last year.

For the July-to-September quarter, Nissan's net income rose 8.1% to 125.0bn yen.

Net revenues rose 11.5% to 2.346 trillion yen. Operating profit was down 5.5% to 205.2bn yen while the operating profit margin was 8.7%. Ordinary profit was down 16.7% to 184.8bn yen.

Nissan sold a total of 955,000 vehicles worldwide in the second quarter, up 15.6% compared with the prior year.