Nissan: Remarks from Joji Tagawa, Corporate Vice President on Nissan Motor Co., Ltd. mercantile year 2015 first-quarter financial results

Posted on 29. Jul, 2015 by in Nissan Canada

Nissan announces initial entertain FY2015 financial results

 

Today, Nissan is stating plain financial formula for a initial entertain of mercantile year 2015 opposite a churned backdrop for a tellurian economy, and a sundry opening in a opposite regions in that we operate.

For a quarter, net revenue, handling profit, net income and automotive giveaway cash-flow all softened contra a allied prior-year period. Our formula were upheld by enlivening direct in North America and Western Europe as good as a auspicious impact of a year over year change in a yen-dollar sell rate. Together, these trends as good as a ongoing actions to urge operational potency authorised us to homogeneous a delayed sales gait in Japan and several rising markets, as good as disastrous banking movements in other countries.

For a 3 month period, combined net revenues increasing 17.6% to 2.9 trillion yen. Operating distinction totaled 193.7 billion yen, that equates to an handling domain of 6.7%. Net income increasing to 152.8 billion yen, that represents a 5.3% net margin. Free money upsurge for a automotive business was 109.5 billion yen and we finished a duration with an automotive net money position of 1.45 trillion yen.
These sum prove that Nissan is on a right trail towards a Power 88 mid-term goals.

Before going by a financial formula in some-more detail, we will outline some business highlights for a quarter.

 

PRODUCT OFFENSIVE 

During a period, we confirmed a new product offensive. In a US, we launched a 2016 Maxima to certain reviews. This flagship sedan has been redesigned to interest to American consumers with bolder styling, a some-more absolute engine and a latest reserve and connected record system.

In China, we denounced a Lannia, that was grown for immature Chinese business and we launched a Venucia T70, an all-new compress SUV.

In Japan, we launched a Hybrid chronicle of a X-Trail, one of a many successful models in Japan and globally. We also announced a additional prolongation of a Rogue in Kyushu from subsequent open for trade to North America, and we introduced a cab chronicle of a NV200 for a market.

Our product descent is stability with a launch of a NP300 Frontier in Latin America and a Caribbean. This starts a array of behind to behind pick-up launches in 33 markets.

QUALITY 

Also in a quarter, several Nissan and Infiniti models were famous in a new JD Power Initial Quality Study in a US. The 2015 Nissan Sentra was named a tip Compact Car.

The Infiniti QX70 was a tip ranked midsize reward SUV, and a QX80 was a array one vast reward SUV. The QX50 was also named one of a tip 3 compress reward SUVs. Infiniti was ranked among a tip 5 nameplates in a altogether ranking, out-performing several opposition European reward brands.

Nissan also perceived honors from a Insurance Institute for Highway Safety. The totally redesigned 2015 Nissan Murano was awarded a “Top Safety Pick Plus” car reserve rating.

BRAND 

These awards assistance strengthen perceptions of a Nissan brand. We serve extended a code by a sports partnerships, as demonstrated by a support for a UEFA (pronounced u-ey-faa) Champions League, a Yokohama F-Marinos and subsequent year’s Olympic Games in Rio de Janeiro. In a US, Nissan and a National Football League’s Tennessee Titans recently announced a arrangement of a 20-year, disdainful naming-rights partnership that rebrands Nashville’s downtown track as Nissan Stadium. This will boost Nissan’s visibility, as Nissan will be named by a media in tie with countless sporting events and concerts hold during a stadium.

ZERO EMISSIONS 

Nissan is also ancillary a enlargement of a world’s charging infrastructure. During a past quarter, Nissan extended a “No Charge to Charge” graduation to 17 US markets with a further of a Boston and Denver civil areas. We also extended a charging participation in Japan, where we fake a partnership with Yokosuka city. There are now some-more than 14,000 EV chargers, incompatible home chargers.

And in South Africa, we sealed a chit of bargain with BMW to devise and build a inhabitant grid of electric car charging stations for use by Nissan and BMW electric vehicles.

In addition, Nissan and Green Charge Networks, a largest provider of blurb appetite storage, assimilated army to muster second-life lithium-ion car batteries for still blurb storage in a U.S. and general markets.

ALLIANCE 

Last month, a Renault-Nissan Alliance has sole a 250,000th electric vehicle. The Alliance is a world’s personality in zero-emission mobility and accounts for half of a electric vehicles sole worldwide. The Nissan LEAF is a best-selling electric car of all time, with some-more than 180,000 units sold.

And progressing this month, a Alliance, announced record synergies of 3.8 billion euros for 2014, adult from 2.9 billion euros a before year. The Alliance is targeting synergies of during slightest 4.3 billion euros by a finish of mercantile year 2016. These advantages will upsurge from deeper partnership in 4 pivotal business areas: engineering, production and supply sequence management, purchasing, and tellurian resources.

FY 15 Q1 SALES PERFORMANCE 

During a 3 months finale Jun 30th, tellurian sum attention volumes – or TIV – reached 22.02 million units, an boost of 1.5%.
Nissan saw section sales arise to 1.29 million units, adult 4.4% from 1.24 million in a same entertain of a before mercantile year. Nissan’s tellurian marketplace share was adult 0.2 commission points to 5.9%.
Looking during a pivotal markets in detail…

In Japan, TIV fell by 5.5% to 1.1 million units. Nissan saw section sales decrease by 10% to 120 thousand units, ensuing in a marketplace share of 11.0%. Conditions sojourn challenging, quite in segments for models such as NOTE and Serena. But we have been speedy by strong sales of a X-Trail and DAYZ ROOX.

In China, where a sales opening is totalled on a calendar basis, TIV was adult 5.7% to 5.94 million units. Nissan section sales increasing to 296 thousand units, homogeneous to a marketplace share of 5.0%.

The Sylphy array and X-Trail continue to expostulate demand. Although we were negatively impacted by a decrease in light blurb vehicles sales – due to new glimmer regulations – a China sales are in line with a expectations.

In North America, Nissan achieved record sales. TIV in a U.S. was adult 3.3% during 4.57 million units. Nissan’s sales rose by 5.5% to 369 thousand units, homogeneous to a marketplace share of 8.1%. Strong direct for models including Altima, Rogue and Sentra underpinned this performance.

In Canada, Nissan also outperformed a marketplace as section sales jumped 13.6% to 37 thousand units, homogeneous to a marketplace share of 6.5%.
In Mexico, Nissan confirmed a number-one position with section sales of 80 thousand units adult 25%, homogeneous to a marketplace share of 26.3%.
In Europe, TIV increasing by 0.7%. Nissan sales rose by 10.7% to 189 thousand units, representing a marketplace share of 4.0%. This opening was driven by direct for products such as Qashqai and Juke, that determined a care in a crossover segment. The association finished a duration as a best-selling Asian code in Europe.
In Russia, notwithstanding a 36.6% decrease in a market, Nissan’s sales declined by 12.6% to 34 thousand units. As a result, a marketplace share rose to 8.5%.

In other markets, TIV fell by an estimated 3.8% to 4.82 million units. Nissan’s sales in a other markets fell by 1.6% to 203 thousand units. Among these markets, sales in Asia and Oceania declined 3.9% to 87 thousand units. Sales in Latin America declined 2.5% to 42 thousand units and sales in a Middle East decreased 6.3% to 49 thousand units. Sales in Africa increasing 22.3% to 25 thousand units.

FY15 Q1 financial performance 

Now let’s pierce to a altogether financial opening for a period. As with before quarters, Nissan is presenting a financial opening underneath a equity accounting process for a corner try in China.

On this basis:

  • Consolidated net revenues increasing 433.8 billion yen to 2.9 trillion yen, essentially driven by a boost in volume and a impact of FX banking interpretation on abroad revenues.
  • Operating distinction totaled 193.7 billion yen, adult 71.1 billion yen or 58% from a allied before year period.
  • Net income was 152.8 billion yen that was adult 40.7 billion yen or 36.3% contra a allied before year period.

 Looking during a handling distinction transformation in detail:

  • FX had a certain impact of 32.0 billion yen.
  • Cost items, including purchasing cost rebate efforts resulted in net assets of 42.6 billion yen.
  • Volume and brew constructed a certain impact of 64.5 billion yen.
  • The boost in offered losses resulted in a 41.9 billion yen disastrous movement.
  • RD losses increasing by 7.4 billion yen.
  • Manufacturing losses increasing by 3.2 billion yen.
  • Other equipment had a disastrous impact of 15.5 billion yen.

For a period, giveaway money upsurge was 109.5 billion yen for a automotive business. Nissan continued to suffer a plain automotive net money position of 1.45 trillion yen. While this increasing from a 1.39 trillion yen during a finish of mercantile year 2014, it is 530.8 billion yen above a net money position of 916.3 billion yen that we reported during a same indicate in mercantile 2014.

On a government pro forma basis, that includes a proportional converging of a Chinese corner venture:

  • Net revenues rose to 3.1 trillion yen for a initial quarter.
  • Operating distinction increasing to 219.7 billion yen or 7% of net revenue.
  • Net income rose to 152.8 billion yen.
  • Automotive giveaway money upsurge was 130.4 billion yen; and
  • We finished a duration with automotive net money of 1.6 trillion yen.

Conclusion 

Relative to a financial opinion for a year, we are progressing a formerly announced full-year guidance.

We also continue to devise a full year division of 42 yen per share, a 27% boost from a before year.

In conclusion, these formula uncover Nissan is creation swell towards delivering a Power 88 objectives. These sojourn a feat of a tolerable 8% handling distinction domain by a finish of a devise duration and a aim of 8% tellurian marketplace share.

 

 

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