Nissan Motor Co., Ltd. today announced financial results for the 12-month period ending March 31, 2019.
The company faced an unfavorable global business climate, and incurred short-term costs due to its initiatives to improve quality of sales in the U.S., as well as the implementation of a warranty extension campaign covering certain vehicles. Based on the factors outlined above Nissan generated an operating profit of 318.2 billion yen for the full year on net revenues of 11.57 trillion yen, equivalent to an operating margin of 2.7%. Full-year net income1 decreased by 57.3% to 319.1 billion yen.
Full-Year Financial Highlights
The following table summarizes Nissan’s financial results for the 12-month period ending March 31, 2019, calculated under the equity accounting method for the group’s China joint venture.
(TSE report basis – China JV equity basis)2
|
Yen in billions |
FY 2017 |
FY 2018 |
% change year on year |
|
Revenues |
11,951.2 |
11,574.2 |
-3.2 |
|
Operating profit |
574.8 |
318.2 |
-44.6 |
|
Operating margin % |
4.8 |
2.7 |
-2.1ppt |
|
Ordinary profit |
750.3 |
546.5 |
-27.2 |
|
Net income1 |
746.9 |
319.1 |
-57.3 |
Based on average foreign exchange rates of JPY 110.9/USD and JPY 128.4/EUR for FY2018
On a management pro forma basis, which includes the proportionate consolidation of results from Nissan’s joint venture operation in China, operating profit was 493.2 billion yen and net income1 was 319.1 billion yen.
Sales performance
In fiscal year 2018, global unit sales fell by 4.4% to 5.516 million units.
Despite the unfavorable business climate, sales in Japan (including minivehicles) rose by 2.1% to 596,000 units. This increase was driven by strong demand for the Note compact car and the Serena minivan, which feature Nissan Intelligent Mobility by offering technologies such as e-POWER and ProPILOT. The Note was the top-selling registered vehicle in Japan in fiscal year 2018, while the Serena led the minivan segment.
In China, where the company’s results are calculated on a calendar-year basis, strong performances by the new Kicks, X-Trail and Sylphy led to a 2.9% increase in Nissan’s unit sales increased to 1.564 million units, equivalent to a market share of 5.9%.
In the U.S., Nissan’s unit sales fell by 9.3% to 1.444 million units, equivalent to a market share of 8.4%.
Nissan sales in Europe, excluding Russia, fell by 17.8% to 536,000 units, which resulted in a market share of 3.0%. Unit sales in Russia, however, rose by 2.6% to 107,400 units.
In other markets, including Asia and Oceania, Latin America, the Middle East and Africa, Nissan’s sales fell by 0.4% to 815,000 units.
Fiscal 2018 Dividend
Nissan plans to propose a dividend of 57 yen per share for fiscal year 2018 at the company’s Ordinary General Meeting of Shareholders.
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SOURCE: Nissan
