Nissan Reports First Half FY12 Financial Results

NISSAN CANADA - Nissan Motor Co., Ltd., announced financial results for the first half of the fiscal year ending March 31, 2013, as well earnings for the second quarter FY12. For the six-month period to September 30, Nissan achieved consolidated net revenues of 4.5468 trillion yen (US $57.26 billion, euro 45.24 billion), an increase of 4.1% over the same period in FY11.

In the first half, Nissan delivered operating profit of 287 billion yen (US $3.61 billion, euro 2.86 billion), resulting in an operating profit margin of 6.3%. Net income was 178.3 billion yen (US $2.25 billion, euro 1.77 billion), a decrease of 2.8% compared to FY11. Ordinary profit was 275.6 billion yen (US $3.47 billion, euro 2.74 billion) for the six month period. These results were achieved against a backdrop of unfavorable currency movements, deteriorating market conditions in Europe and signs of slowing growth in China.

In the first half, Nissan sold 2.476 million vehicles worldwide, up 11.3% compared with the same period of last year – out-performing overall industry volumes that increased by 7.4%.

"Nissan has achieved positive results in a challenging operating environment impacted by the continued appreciation of the Yen and particularly difficult economic conditions in Europe," said Nissan President and CEO Carlos Ghosn. "Despite these near-term challenges, Nissan has responded decisively and remains on course to deliver profitable growth in its full-year performance."

For the second quarter (July-to-September) of FY12, Nissan's net income was 106 billion yen (US $1.35 billion, euro 1.08 billion), an increase of 7.7% year-on-year. Net revenues were 2.4104 trillion yen (US $30.67 billion, euro 24.52 billion), up 5.5% compared to last year. Operating profit was 166.4 billion yen (US $2.12 billion, euro 1.69 billion), rising 4.4% year-on-year to result in an operating profit margin of 6.9%. Ordinary profit was 164.1 billion yen (US $2.09 billion, euro 1.67 billion).

Based on a foreign-exchange rate assumption of 80 yen/dollar and 103 yen/euro for the second half of fiscal year 2012, the revised average rates will be 79.7 yen/dollar and 101.8 yen/euro for the full-year fiscal year 2012. After factoring in the projected negative impact of a strong yen, disruption in China and continuing weak market conditions in Europe, Nissan has revised downward its full-year forecast for fiscal 2012. Nissan filed the following forecasts with the Tokyo Stock Exchange for the fiscal year ending March 31, 2013:

·         Net revenue of 9.815 trillion yen (US $123.15 billion, euro 96.41 billion);
·         Operating profit of 575 billion yen (US $7.21 billion, euro 5.65 billion);
·         Ordinary profit of 545 billion yen (US $6.84 billion, euro 5.35 billion);
·         Net income of 320 billion yen (US $4.02 billion, euro 3.14 billion);
·         Capital expenditures of 520 billion yen (US $6.52 billion, euro 5.11 billion); and
·         R&D expenses of 467 billion yen (US $5.86 billion, euro 4.59 billion).
FY12 full-year sales volume is now forecast to decrease from 5.35 million units to 5.08 million units, mainly reflecting the volatile situation in China and Europe.
Note: For the first-half financial results, amounts in dollars and euros are translated for the convenience of the reader at the foreign-exchange rates of 79.4 yen/dollar and 100.5 yen/euro, the average rates for the first six months of the fiscal year ending March 31, 2013. For the second-quarter results, amounts are based on 78.6 yen/dollar and 98.3 yen/euro, the average rates for the three months from July to September 2012.