Nissan: Remarks on Nissan Motor Co., Ltd. FY14 3Q financial formula from Joji Tagawa, Corporate Vice President

Posted on 09. Feb, 2015 by in Nissan Canada

RELATED: Nissan reports 23.6% arise in net income to $3.2 billion for first
9 months of FY2014

Overall, in annoy of hurdles in a marketplace environment, Nissan has delivered plain financial formula as we continue to govern a Nissan Power 88 mid-term devise and profitably grow a business. For a 9 month duration finale Dec 31st of 2014, we are stating combined net revenues of 8.1 trillion yen. This represents an 11.1% boost over a same duration in 2013. Operating distinction augmenting 39% to 417.9 billion yen, that equates to an handling domain of 5.2%. Net income augmenting 23.6% to 338.8 billion yen, that represents a 4.2% net margin. Free money upsurge for a automotive business was 155.7 billion yen and we finished a duration in a net money position of 1.18 trillion yen.

Looking privately during a third quarter, a expansion in a US marketplace and a advantages of a normalizing yen dollar sell rate outweighed a disastrous effects of negligence direct in some markets, quite China and Japan, as good as a stability domestic and mercantile situations in Russia.

Before going by a financial formula in some-more detail, we will outline some of a operational highlights of a period.

FY 14 3Q, business update

On a Product front, Nissan continued to see a advantages of a Common Module Family architecture, common by a new Qashqai, a Rogue and a X-Trail. Each of these vehicles has augmenting sales volume. Compared to a before year, Qashqai rose by 22% in Europe; Rogue augmenting 16% in a US and X-Trail augmenting seven-fold in China and by 74% in Japan.

These models continue to constraint critical fan awards in many markets. Just final month, a X-Trail was named Car of a Year in China.

Nissan is progressing a product offensive. During a past dual months, we launched a third era Murano in a US and denounced dual critical products during a North American International Auto Show in Detroit. The initial was a all-new Titan, that will go on sale after this year in a US. The second was a Infiniti Q60 Concept, an critical predecessor to a new sports coupe that will go into prolongation in 2016. And final week, we denounced a all-new Maxima, that will go on sale this year in a US.

Nissan continues to denote a care in unconstrained expostulate systems and modernized technologies.

Last month, Nissan and NASA announced a five-year investigate and expansion partnership. This will capacitate us to exam a swift of zero-emission unconstrained vehicles during a Ames Research Center in California. Each celebration will also advantage from a others ongoing investigate into unconstrained expostulate systems and synthetic intelligence.

RJC, a Researchers’ and Journalists’ Conference of Japan, famous Nissan with a record of a year endowment for a world-first Direct Adaptive Steering record system. This complement is used in a Skyline sedan in Japan and a Infiniti Q50 overseas.

Finally, Nissan entered into an agreement to permit a Around View Monitor with Moving Object Detection record to Hitachi Construction Machinery Co., Ltd.

Nissan’s joining to zero-emission mobility has never been stronger. Since a introduction, a Nissan LEAF has sole over 158,000 units and has reinforced a position as a world’s best-selling EV.

Together with a Alliance Partner, Renault, we have sole some-more than 200,000 electric vehicles.

An critical component of continued marketplace expansion is a expansion of a charging infrastructure.

Recently, Nissan stretched a “No Charge to Charge” giveaway open charging stations in a flourishing series of pivotal US cities.

And in Japan, a estimated series of discerning charging stations will strech scarcely 6,000 units by a finish of mercantile year 2014. Total charging stations, including normal chargers and those in homes, now sum 40,000 units. In comparison, there are roughly 34,000 gasoline stations in Japan.

The Renault Nissan Alliance is one of a heading army in a tellurian automotive industry. In calendar year 2014, we continued as a fourth largest OEM with tellurian sales of 8.5 million units.

Having epitomised some of a third entertain operational highlights, we will go now by a altogether opening for a 9 months in detail, starting with a sales performance.

FY14 3Q sales performance

For a 9 months finale Dec 31, altogether tellurian attention volumes augmenting 2.8% to 63.42 million units.

Nissan’s altogether sales formula augmenting 4.4% to 3.8 million units in a initial 3 buliding of a mercantile year, as clever expansion in North America and Europe enabled us to out-perform a attention in those regions.
In Japan, a Total Industry Volume – or TIV – fell by 3.4%, to 3.72 million units. Nissan’s sales decreased 10.5% to 417,000 section sales, ensuing in a marketplace share of 11.2%.

In China, TIV for a initial 9 months augmenting 7.7% to 16.12 million units. Nissan sales augmenting 5.2% to 879,000 units. For a calendar year, TIV augmenting 7.6% to 22.34 million units, while Nissan’s sales reached 1.22 million units, with important gains by a X-Trail and Sylphy. Our altogether marketplace share in China was 5.5%.

Turning to North America; In a US, TIV augmenting 7.3% to 12.78 million units. Nissan’s sales volume out-performed a marketplace with an boost of 10.9% to 1.03 million units, driven by direct for a Rogue and Altima models. Market share softened 0.3 points to 8.1%. In Canada, sales were adult 26.1% to 92,000 units. In Mexico, Nissan reliable a clever marketplace share position during 25.9%, with a 13.8% boost in sales to 229,000 units for a period.

In Europe, TIV showed signs of stabilization with section volumes reaching 13.2 million units. Nissan’s sales augmenting 13.4%, ensuing in a record marketplace share of 4.1%. Excluding Russia, Nissan’s sell sales reached 400,000 units, a 12.7% increase. Market share softened 0.3 points to 3.6%.

In Russia, a weakening of a ruble and mercantile doubt undermined consumer confidence. However, Nissan’s sales in Russia augmenting 15.5% to 134,000 section sales, that was a 7.1% marketplace share.

In other markets – including ASEAN, Africa and Latin America – mercantile conditions sojourn stagnant. Nissan’s sales volumes were prosaic augmenting only 0.9% to 651,000. Of those markets, Asia and Oceania available a dump of 1.9% to 267,000 units. Latin America fell 3.4% to 142,000 units. Only a Middle East available an increase, adult 11% to 169,000 units.

FY14 9-month financial performance

I will now pierce to a altogether financial opening for a period. As we know, a financial statements are prepared regulating a equity accounting basement for a corner try in China. On this basis, combined net revenues for a duration augmenting by 11.1% or 809.9 billion yen to 8.09 trillion yen, essentially driven by aloft section sales and interpretation advantage on abroad income from a normalization of a yen.

Consolidated handling distinction totaled 417.9 billion yen, adult 39% vs a before year duration and agreeable a 5.2% handling margin. Net income was 338.8 billion yen, adult 23.6% from a same duration of mercantile 2013.

Looking during a Operating Profit transformation in detail:

  • The 41.8 billion yen impact from unfamiliar sell came especially from a alleviation of a yen opposite a U.S. dollar, that was partially equivalent by a ruble.
  • Cost equipment resulted in a net assets of 71.4 billion yen.
  • Volume and brew constructed a certain impact of 54.6 billion yen.
  • The boost in offered losses resulted in a 26.4 billion yen disastrous movement.
  • RD losses augmenting by 8.3 billion yen.
  • Manufacturing losses were 15.1 billion yen, and
  • Other equipment had a disastrous impact of 0.8 billion yen.

At a finish of a period, a net automotive money position was 1.18 trillion yen, adult 533.9 billion yen compared with 643.5 billion yen during a finish of Dec 2013.

Looking during a formula for a duration on a “Management Pro-forma” basement that includes a proportional converging of a China JV, revenues for a mercantile 9 month duration rose to 8.79 trillion yen. Operating distinction was 516.8 billion yen, net income rose to 338.8 billion yen. Automotive giveaway money upsurge was 162.5 billion yen and we finished a duration with an automotive net money position of 1.3 trillion yen.

The formula paint a poignant alleviation over a pro forma total for a same duration of mercantile 2013, with revenues adult 10.8%. Operating distinction rose by 39.4% with a handling domain improving by 1.2 commission points from 4.7% to 5.9%. Net income augmenting 23.6% from a before year period.

FY14 outlook

For a residue of a year, we design marketplace conditions will sojourn severe – stability a trend gifted recently – as we do not design to see poignant improvements in a nearby tenure in China and Russia, as good as other rising markets. We are, nevertheless, speedy by signs of stabilization via Western Europe and we see no mangle in a transformation of a US market. Given these marketplace conditions, we are announcing a rider to a full-year foresee for this stream mercantile year (to be confirmed).

Specifically, we are reworking a sales opinion down to 5.3 million units to simulate a stream tellurian sales trend, quite in China, Russia and other rising markets. At a same time, we are augmenting a full year distinction guidance, given a expectations of auspicious banking movements, tender materials assets and stability cost efficiencies. Together, these should some-more than equivalent a diminution in a volume outlook.

Reflecting these changes, Nissan has filed a following revised full-year foresee with a Tokyo Stock Exchange, regulating a unfamiliar sell rate arrogance of 115 yen to a dollar and 135 yen to a euro for a fourth quarter. It is formed on a equity process for a Chinese corner venture.

  • Net income is approaching to be 11.15 trillion yen;
  • Our handling distinction foresee has been augmenting by 35 billion to 570 billion yen;
  • Net income is approaching to arise by 15 billion to 420 billion yen;
  • Capital output is approaching to sojourn during 525 billion yen;
  • And RD losses are expected to be unvaried during 500 billion yen.

Looking during a change in handling distinction from a before outlook, we anticipate:

  • A certain unfamiliar sell transformation of 55 billion yen;
  • A 25 billion yen disastrous impact from a diminution in sales volume;
  • And a 5 billion yen alleviation in monozukuri and others.

 

Conclusion

In conclusion, Nissan continues to broach on a Power 88 plan notwithstanding a severe macro-economic conditions. Based on a revised outlook, we design to beget certain giveaway money flow. And we sojourn committed to a division remuneration of 33 yen per share for this mercantile year and progressing a smallest 30% pay-out ratio to net income for a residue of thePower 88 period.

 

 

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