July 26, 2005
NISSAN REVENUE UP 12.6%, OPERATING PROFIT UP 10.7% IN FY05 1st QTR
NET INCOME DOWN 14.2% DUE TO ONE-TIME CHARGES
TOKYO (July 26, 2005) - Nissan Motor Co., Ltd., today announced results for the first quarter of the fiscal year ending March 31, 2006. Consolidated net income after tax totaled 105.7 billion yen (US $0.98 billion, euro 0.77 billion) in the April-to-June quarter, down 14.2% compared with the same period last year. The drop was due to one-time charges related to a change in Japanese accounting standards for the treatment of fixed assets and the introduction of Nissan’s defined contribution pension plan.
Excluding these one-time charges, Nissan’s net profit increased by 4.1% to 128.2 billion yen (US $1.19 billion, euro 0.94 billion).
“Nissan achieved robust results last quarter due to brisk sales in the US and Japan, despite a tougher business environment,” said Nissan President and CEO Carlos Ghosn. “We are maintaining our forecast for the full fiscal year,” he added.
Net revenues amounted to 2.145 trillion yen (US $19.92 billion, euro 15.66 billion) in the April-to-June period, up 12.6% compared with a year ago. Operating profit totaled 206.3 billion yen (US $1.92 billion, euro 1.51 billion), up 10.7%, while Nissan’s operating profit margin came to 9.6%. Ordinary profit amounted to 210.8 billion yen (US $1.96 billion, euro 1.54 billion), up 17.4%.
Nissan has forecast full fiscal year net income of 517 billion yen, net revenues of 9 trillion yen, operating profit of 870 billion yen and ordinary profit of 860 billion yen. The forecast is based on exchange rates of 105 yen/dollar and 130 yen/euro.
In the first quarter of fiscal year 2005, Nissan sold a total of 879,000 vehicles worldwide, an increase of 14.3% compared with last year, supported by new and existing products. This fiscal year, Nissan plans to release a total of six all-new models around the world, including the new Serena minivan and the Otti minicar recently launched in Japan.
Notes: Amounts in dollars and euros are translated for the convenience of the reader only at the foreign exchange rates of 107.7 yen/dollar and 137 yen/euro, the average rates for the first quarter of the fiscal year ending March 31, 2006.