October 28, 2005
NISSAN REVENUE UP 12.1%, OPERATING PROFIT UP 2% IN FY05 FIRST HALF
NET INCOME DOWN 3.4% DUE TO ONE-TIME CHARGES
TOKYO (Oct. 28, 2005) - Nissan Motor Co., Ltd., today announced financial results for the first half of the fiscal year ending March 31, 2006, as well as second-quarter performance. In the six months through September, net income after tax totaled 230.7 billion yen (US $2.11 billion, euro 1.69 billion), down 3.4% compared with the same period last year due to one-time charges in the first quarter. The 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.
Net revenues amounted to 4.491 trillion yen (US $41.01 billion, euro 32.95 billion) in the April-to-September period, up 12.1% compared with a year ago. Operating profit totaled 411.5 billion yen (US $3.76 billion, euro 3.02 billion), up 2.0%, while Nissan's operating profit margin came to 9.2%. Ordinary profit amounted to 395.6 billion yen (US $3.61 billion, euro 2.90 billion), down 1.4%.
"Despite the severe business environment, Nissan's fundamentals continue to strengthen thanks to appealing products and a competitive cost structure," said Nissan President and CEO Carlos Ghosn. "Taking into account the risks and opportunities, we see no compelling reason to change our initial financial forecasts for the full fiscal year," he added.
In the first half, Nissan sold a total of 1,834,000 vehicles worldwide, up 15% compared with last year. Nissan released two all-new models in Japan during the period - the Serena minivan and the Otti minicar - and plans to launch three additional new models in Japan and one in Europe in the second half.
In the July-to-September quarter, Nissan's net income totaled 125.0 billion yen (US $1.14 billion, euro 0.92 billion), an increase of 8.1%. Net revenues amounted to 2.346 trillion yen (US $21.43 billion, euro 17.21 billion), up 11.5% compared with a year ago. Operating profit totaled 205.2 billion yen (US $1.87 billion, euro 1.51 billion), down 5.5%, while Nissan's operating profit margin came to 8.7%. Ordinary profit amounted to 184.8 billion yen (US $1.69 billion, euro 1.36 billion), down 16.7%.
Nissan sold a total of 955,000 vehicles worldwide in the second quarter, up 15.6% compared with the prior year.
Notes: Amounts in dollars and euros are translated for the convenience of the reader only at the foreign exchange rates of 109.5 yen/dollar and 136.3 yen/euro, the average rates for the first half of the fiscal year ending March 31, 2006.