April 26, 2007
NISSAN NET INCOME AT 460.8 BILLION YEN IN FY2006
TOKYO (April 26, 2007) – Nissan Motor Co., Ltd., today announced financial results for the fiscal year 2006, ending March 31, 2007 and filed the following results with the Tokyo Stock Exchange:
As previously announced, in order to increase transparency and consistency, Nissan is harmonizing calendar-year results for overseas subsidiaries such as Europe and Mexico with fiscal-year results for Nissan Motor Co., Ltd.
With the exception of China and Taiwan where fiscal-period accounting is precluded by law, all overseas subsidiaries that previously ended their annual periods in December have been harmonized to align with the consolidated fiscal period ending in March. This was done by including an additional quarter of results from January to March for those subsidiaries previously consolidated on a calendar-year basis. Adding this fifth quarter results in a one-time positive impact to fiscal 2006 results of 767.6 billion yen (US $6.56 billion, euro 5.19 billion) in revenues, 21.4 billion yen (US $0.18 billion, euro 0.14 billion) in operating profits and 11.6 billion yen (US $0.10 billion, euro 0.08 billion) to the bottom line net income.
On comparable 12 month periods, Nissan’s global sales were 3,483,000 units, down 2.4%. In the US, sales were at 1,035,000 units, down 4.0%. In Japan, sales were at 740,000 units, down 12.1%. In Europe, sales came to 540,000 units, down by 0.2%. Sales in General Overseas Markets were 1,168,000 units, an increase of 5.1%.
The company’s net automotive cash position stood at 254.7 billion yen (US $2.18 billion, euro 1.72 billion) at the end of fiscal 2006. Nissan will propose a 17-yen-per-share year-end dividend at the company’s annual shareholders’ meeting this June, for a full-year dividend of 34 yen per share for fiscal 2006, as committed.
Ghosn noted that tangible progress had been made on the four key breakthroughs in Nissan Value-Up. The Infiniti luxury brand continues to expand globally with its introduction to Russia in 2006, into China and Ukraine in 2007 and across Western Europe during 2008.
Light Commercial Vehicle (LCV) sales globally have grown by 57% to 490,000 units compared to the start of Nissan Value-Up. The LCV business now generates a consolidated operating profit margin of over 8%.
Nissan continues to enhance its overall cost competitiveness. 15% of global sourcing is made in Leading Competitive Countries (LCC) such as China, ASEAN, Mexico, and Eastern Europe, versus 12% last year.
Finally, our geographic expansion has been accelerated by additional investments in Brazil and China, a new plant being established in Russia, and a new partnership with Renault and Mahindra to build a manufacturing facility in India.
Nissan continues to invest massively for its future within a clearly established long-term strategy, especially in the research and development of breakthrough technologies and innovative products. In 2007, Nissan will launch 11 all-new products globally: Livina, X-TRAIL, Altima coupe, single and double-cab Atlas truck, entry-level sedan for Mexico, Infiniti G37 coupe, Rogue, GT-R, Infiniti EX luxury crossover, Murano and a single-cab version of the Frontier-Navara pickup truck.
Based on the company’s outlook and assuming foreign exchange rates of 117 yen/dollar and 148 yen/euro - which is at the same level as fiscal 2006 - Nissan filed the following forecast for the fiscal year ending March 31, 2008, with the Tokyo Stock Exchange:
Note: Amounts in dollars and euros are translated for the convenience of the reader at the foreign exchange rates of 117 yen/dollar and 148 yen/euro, the average rates for the fiscal year ending March 31, 2007.
For the convenience of readers who wish to make a direct comparison between fourth quarter 2006 and the same period in 2005, excluding the impact of the accounting change, the totals are as follows: