|Results for nine months to December 31, 2014|
(TSE report basis China JV equity basis)*
|FY2014 9 months|
|Net revenue||¥8.09 trillion
($75.8 billion/€57.7 billion)
|Operating profit||¥417.9 billion
($3.9 billion/€3.0 billion)
|Ordinary profit||¥496.4 billion
($4.7 billion/€3.5 billion)
|Net income||¥338.8 billion
($3.2 billion/€2.4 billion)
|Based on average foreign exchange rates of JPY 106.7/USD and JPY 140.2/EUR|
YOKOHAMA, Japan – Nissan Motor Co., Ltd. today announced improved financial results for the nine months to December 31, 2014, as solid US sales, cost efficiencies and favorable currency movements contributed to a 23.6% rise in net income to 338.8 billion yen.
Operating profit rose to 417.9 billion yen for the period, representing a 5.2% margin on net revenues that climbed 11.1% to 8.09 trillion yen.
"Nissan delivered solid financial results in the first nine months of the fiscal year, reflecting rising US sales of our latest models and a normalizing yen-dollar exchange rate," said Carlos Ghosn, president and chief executive officer.
"We anticipate good full-year results as our product offensive and positive momentum in North America and Western Europe offsets volatility in other markets. Given these trends, along with the continuing impact of currency movements and cost controls, we are today revising upward our full-year financial forecast."
Nissan now expects to report net income for the fiscal year of 420 billion yen on projected revenues of 11.15 trillion yen.
The revised forecast follows a nine-month period in which Nissan saw rapidly rising demand for models such as the Altima and Rogue in the US, where retail volumes rose 10.9% to 1.03 million units. Nissan also reported a 13.4% rise in European unit sales, reaching 534,000 units as the award-winning Qashqai and new Pulsar helped lift customer orders.
The double-digit sales increase in the US and Europe – outperforming the growth rate in total industry volumes – offset declines in Japan. In Nissan's home market, a combination of higher sales tax and weak consumer confidence contributed to lower unit sales, which fell 10.5% to 417,000 vehicles.
In China, where Nissan is the leading Japanese car brand, unit sales rose 5.2% to 879,000 units for the nine-month period. For the calendar year to December 31, sales were up 0.5% to 1.22 million units amid signs of slowing Chinese growth.
Globally, Nissan sold 3,835,000 vehicles in the first nine months of fiscal 2014, a 4.4% rise year-on-year.
Nissan made continued progress towards the goals of its Power 88 mid-term plan during the period: delivering synergy benefits from its Common Module Family, the vehicle architecture shared by the Qashqai, Rogue and X-Trail; unveiling new models including the Murano crossover and Titan pick-up truck; and maintaining its global leadership in electric vehicles with the best-selling LEAF and the e-NV200 van.
The company also pressed ahead with the development of autonomous technologies, forging a research alliance with NASA, signing a technology licensing agreement with Hitachi Construction Machinery Co., Ltd. for commercial vehicles and winning awards for new systems such as Direct Adaptive Steering.
Nissan's Alliance strategy, based around its partnership with Renault, continued to deliver synergies and technology-sharing benefits. Total unit sales for the Alliance reached 8.5 million vehicles for the 2014 calendar year.
Nissan has revised downward its unit sales forecast for fiscal 2014, reflecting current global sales trends. The company expects to sell 5.3 million units this fiscal year, up 2.2% year-on-year. Based on this revised sales outlook, as well as expected improved cost efficiencies and foreign exchange rates, Nissan has increased its full year profit guidance (calculated under the equity accounting method) for the fiscal year ending March 31, 2015, to show:
|Nissan FY14 Outlook TSE report basis China JV equity basis|
|Net revenue||¥11.15 trillion
($102.5 billion/€80.3 billion)
|Operating profit||¥570 billion
($5.2 billion/€4.1 billion)
|Ordinary profit||¥655 billion
($6.0 billion/€4.7 billion)
|Net Income||¥420 billion
($3.9 billion/€3.0 billion)
|Calculated on exchange rate of JPY 108.8/ USD and JPY 138.9/ EUR|
*Since the beginning of fiscal year 2013, Nissan has reported figures calculated under the equity method accounting for its joint venture with Dongfeng in China. Although net income reporting remains unchanged under this accounting method, the equity-accounting income statements no longer include Dongfeng-Nissan's results in revenues and operating profit.
A detailed earnings presentation for the reporting period can be found at www.nissan-global.com/EN/IR/FINANCIAL. A live webcast of the earnings press conference will be available at: http://www.nissan-global.com/EN/
About Nissan Motor Co.
Nissan Motor Co., Ltd., Japan's second-largest automotive company, is headquartered in Yokohama, Japan, and is part of the Renault-Nissan Alliance. Operating with more than 244,500 employees globally, Nissan sold almost 5.2 million vehicles and generated revenue of 10.5 trillion yen (USD 105 billion) in fiscal 2013. Nissan delivers a comprehensive range of more than 60 models under the Nissan, Infiniti and Datsun brands. In 2010, Nissan introduced the Nissan LEAF, and continues to lead in zero-emission mobility. The LEAF, the first mass-market, pure-electric vehicle launched globally, is now the best-selling EV in history with almost 50% share of the zero-emission vehicle segment.