GOOD TIMES ROLL AS NISSAN POSTS HEALTHY PROFITS

Nissan has announced that it made very good money over the past fiscal year, despite the bad times. The Japanese company reported net revenues of 7.5173 trillion yen (R615.86 billion), down 10.9% from the prior year, with the stronger yen offsetting the increase in sales volume. Net income was 42.4 billion yen (R3.47 billion), compared to negative 233.7 billion yen (R19.15 billion) in fiscal year 2008.

The full-year results were better than the forecast given when third-quarter financial results were filed on February 9, 2010. Significant contributors to Nissan’s performance compared to last year were sales volume growth in emerging markets, especially in China, and the effective execution of recovery plan actions to counter the effects of the global financial and economic crisis.

“Fiscal year 2009 was an extremely challenging year.  Within Nissan, we kept our focus on recovery, guided by our company’s recovery plan,” said Nissan President and CEO Carlos Ghosn.  “Though we are still operating in crisis mode, Nissan is well on track toward complete recovery without any compromise to our strategic priorities.”

Nissan sold a total of 3 515 000 vehicles worldwide in fiscal year 2009, a 3% increase compared with the prior year. In North America, sales were 1 067 000 units, down 5.8%; United States sales were 824 000 units, down 3.8%. In Japan, sales were 630 000 units, up 2.9%. In Europe, sales were to 517 000 units, down 2.4%. Sales in China reached 756 000 units, a 38.7% increase. Other markets totalled 545 000 units, down 7.8%.

In fiscal year 2009, new models released by Nissan included Infiniti G37 Convertible, 370Z Roadster, NV200 Vanette, Fuga, Roox, PIXO, Patrol and March. 

“Although we continue to operate in an environment that is volatile and uncertain, fiscal year 2010 will be an important year in which we launch an affordable, mass-market, all-electric, zero-emission vehicle, extend our presence in emerging markets and develop additional synergies in the Renault-Nissan Alliance,” said Ghosn.

The global sales forecast for fiscal year 2010 is 3.8 million units, an increase of 8.1%. Nissan will launch 10 all-new products globally: the Nissan LEAF zero-emission car in the United States, Japan and Europe (most probably South Africa as well in early 2011); Infiniti QX in the United States, Gulf Cooperation Council countries and Russia; the NV series of commercial vans and a convertible crossover in the United States; Quest minivan for both the United States and Canadian markets; Juke, Elgrand, a new minivan and a new mini car in Japan; and the second car in Nissan’s global compact car line-up, an affordable sedan.

Nissan will continue to be fully engaged in its recovery plan, which is focused around three core pillars: revenue growth, tight cost management and free cash flow generation. The company aims to complete its recovery in fiscal year 2010.