Nissan Motor Corporation posts operating profit of 545.8 billion Yen

Saturday 12 May 2012, 01:31 AM by

On May 11, 2012, Japanese car maker Nissan Motor Corporation Limited announced financial result for the FY ending on 31st March 2012 and filed a report with Tokyo Stock Exchange. It recorded net revenue of 9,409 trillion Yen (USD 118.95 billion or 86.32 billion Euros) and operating profit of 545.8 billion Yen (USD 6.90 billion or 5.01 billion Euros). The company's ordinary profit during the period was 535.1 billion Yen (USD 6.76 billion or 4.91 billion Euros) and net income stood at 341.4 billion Yen (USD 4.32 billion or 3.13 billion Euros).

Since the demand for its cars exceeded that of every other manufacturer's in FY 2011, Nissan witnessed record sales of 4.845 million units. 4.185 million cars were sold in the FY 2010, while the manufacturer outperformed itself by 15.8 per cent in the subsequent year. On the other hand, sales of the whole industry rose at the rate of 4.2 per cent from 72.6 million cars in 2010 fiscal to 75.7 million in the following fiscal. Nissan's global market share reached 6.4 per cent, an increment of 0.6 points.

President and Chief Executive Officer, Nissan Motors, Carlos Ghosn, commented, “Nissan has delivered robust operating profits and record sales amid growing demand for our models, brands and technologies around the world. It is an even more encouraging performance given the headwinds created by natural disasters, an over-valued Yen and uncertain global economic conditions.”

Including the great earthquake of East Japan that occurred in March 2011, the firm has recovered quickly from many challenges to resume its product launch schedule and market growth strategy. The car maker brought out a number of new models in the international market, including the Tiida in China and the Lafesta Highway Star in Japan. Nissan also presented the front-drive and rear-drive versions of NV400 commercial van in Europe and Infiniti JX in the United States in FY 2011.

During this period, the company scored several achievements, such as Nissan LEAF becoming the world's top selling Electric Vehicle (EV). The manufacturer further extended its strategic alliances with other car makers by joining hands with brands like Daimler AG (DAI) and Mitsubishi.

The company reported massive growth across the world, as sales in China, which is its largest market globally, marked 21.9 per cent growth with sales of 1,247,000 vehicles. Sales stood at 1,080,000 units in the United States, a growth rate of 11.8 per cent. In Europe, Russia included, 713,000 units were sold, a rise of 17.5 per cent. Sales in Japan went up by a healthy 9.2 per cent as the manufacturer rolled out 655,000 vehicles, whereas 826,000 units were sold in other markets, a rise of 16.4 per cent.

Ghosn said, "We have begun to deliver on the comprehensive Nissan Power 88 plan that we unveiled last year.” He quoted further, “Our financial performance, product launches and market penetration over the past 12 months demonstrate our progress towards sustainable operating margins of 8% and 8% global market share.”

For FY 2012, the company predicts global sales of 5.35 million units, a growth of 10.4 per cent, which will mark yet another record year. Including the Altima, Pathfinder, Sylphy/Sentra, NV350 Caravan and a long wheelbase version of its Infiniti M hybrid sedan, Nissan is planning to launch a total of 10 new vehicles around the world in this period.

Nissan filed its forecast for FY ending 31 March, 2013 with Tokyo Stock Exchange, on May 11, 2012 on the basis of foreign exchange rates of 82 Yen/Dollar and 105 Yen/Euro. It included net revenues of 10.3 trillion Yen (USD 125.61 billion or 98.10 billion Euro) and operating profits of 700 billion Yen (USD 8.54 billion or 6.67 billion Euro) were expected. Likewise, the company anticipated ordinary profit of 680 billion Yen (USD 8.29 billion or 6.48 billion Euro) and net income of 400 billion Yen (USD 4.88 billion or 3.81 billion Euro).

Before that, the Japanese car maker registered expected targets for fiscal ending on 31 March, 2012 with Tokyo Stock Exchange on 2nd November 2011 on the basis of foreign exchange rates of 79.9 Yen/Dollar and 111.9 Yen/Euro. Under this projection, net revenues were calculated as 9.45 trillion Yen (USD 118.27 billion or 84.45 billion Euro) and operating profits were 510 billion Yen (USD 6.38 billion or 4.56 billion Euro) On the other hand, its ordinary profit were expected to be 480 billion Yen (USD 6.01 billion or 4.29 billion Euro) and net income stood at 290 billion Yen (USD 3.63 billion or 2.59 billion Euro).

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