The financial results filed today are strictly in line with those the company pre-announced on April 23, 2003. The results were delivered during the first year of NISSAN 180, the company's three-year plan aimed to establish sustainable, profitable growth. The plan has three commitments: to achieve 1 million additional sales units worldwide by the end of fiscal year 2004, compared to fiscal year 2001; to achieve an 8% operating margin; and to achieve zero net automotive debt, using constant accounting standards? Two of the three commitments -- the operating margin commitment and debt elimination -- have been realized in the first year of the plan.
"Nissan's revival is a reality," said Ghosn. "Three years ago, our business was in accelerated decline. Today, we're not only back in the global race, we're among the pacesetters. Nissan expects to report record operating profits of 737 billion yen (6.04 billion U.S. dollars, euro 6.25 billion) for fiscal year 2002, which ended March 31, 2003. In announcing its preliminary financial results for the full year, Nissan President and CEO Carlos Ghosn said the company expects to report a consolidated net profit after tax of 495 billion yen (4.06 billion U.S. dollars, euro 4.19 billion). Nissan expects its net automotive debt - which stood at 2.1 trillion yen at the start of fiscal year 1999 - to be completely eliminated.
The results filed today represent the fifth consecutive half of record profit. The results achieved during the first six months of NISSAN 180 reflect a combination of leaner, more efficient operations, increasing volumes and decreasing costs. This financial disclosure is closely aligned to the preliminary results announced on October 23rd, 2003.
"NISSAN 180 was built with the conviction that Nissan could move to its second and final phase of revival -- that of lasting, profitable growth based on attractive products and competitive performance," said Ghosn. "We have been tenaciously laying the groundwork for growth, and today we see that growth is here in a very challenging global market." It expects to report an 84% increase in operating profits for the first half of fiscal year 2002, to 348 billion yen (2.8 billion U.S. dollars, euro 3.0 billion). Record profits are attributed to a combination of higher volumes from new products, more efficient operations and lower purchasing costs. With a confident outlook for the second half, President and CEO Carlos Ghosn revised the full-year operating profit upward by 30% from 553 billion yen to 720 billion yen (5.8 billion U.S. dollars, euro 6.2 billion).
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