November 10, 1998

Nissan Announces Financial Results
for the First Half of the Fiscal Year Ending March 1999

Tokyo ... Nissan Motor Co., Ltd. announced today its non-consolidated financial results for the first half (April 1 - September 30, 1998) of the fiscal year ending March 31, 1999.

Non-Consolidated Financial Results for the First Half
Non-consolidated net sales came to \1,638.5 billion, down \137.5 billion or 7.7% from the same period of the previous fiscal year. In the domestic market, industry-wide sales of new vehicles slumped as a result of the economic recession. Amid these market doldrums, Nissan's total new vehicle deliveries to domestic dealers for the first half came to 435,000 units, down 58,000 units or 11.8% from the same period last year. The company's new vehicle registrations for the term totaled 434,000 units, a decrease of 33,000 units or 7.0% from the corresponding period of last year. As a result, its market share edged up 0.3 points from the same period of last year to 20.9%. Meanwhile, exports during the term came to 344,000 units, down 13,000 units or 3.6%. Despite an increase in the number of units shipped to Europe, the company’s overall exports declined, mainly as a result of inventory adjustments in the U.S.

Despite the company’s continued cost-cutting and streamlining efforts and foreign exchange profits from the weak yen, the company’s operating profit decreased by \29.9 billion or 59.2 % year on year to \20.6 billion. This decrease reflected the slump in overall domestic vehicle demand and the company’s lower sales in the U.S. The company came in with an ordinary profit of \28.8 billion, a decrease of \16.5 billion or 36.4% from the previous year’s first half profit of \45.3 billion. During the first half of the current fiscal year, the company’s net of non-operating income and expenses amounted to \8.2 billion, representing an increase of \13.4 billion over the previous first half. This improvement is due primarily to the sale of the company’s marketable securities holdings. As a result, the company sustained a net loss of \32.5 billion, posting a year-on-year fall of \71.0 billion from a profit of \38.5 billion recorded in the previous first half. Net of special gains and losses came to a loss of \61.3 billion, a decline of \54.5 billion over the figure for the previous first half. The decrease resulted mainly from a marketable securities valuation loss of \76.0 billion in the first half.

Non-Consolidated Forecast for the Fiscal Year Ending March 1999
Net Sales
We estimate net sales for the full fiscal year at \3,400 billion, down 4.1% from the previous year, considering continuing sluggish sales in the domestic market and a projected decline in U.S.-bound export vehicles.

Operating Income
We expect an operating income for the fiscal year of \70 billion, down 18.2%. The projected decrease will result mainly from lower sales in Japan and the U.S. despite the positive factors such as savings from streamlining efforts and foreign exchange profits.

Ordinary Income
We project an ordinary income for the fiscal year of \70 billion, up 21.3%. Meanwhile, we project an increase of approximately \30 billion in our net of non-operating income and expenses for the fiscal year, which will accrue mainly from profits on the sale of marketable securities holdings.

Net Profit/Loss
We expect to show a loss of \10 billion, marking a drop from the previous results. Meanwhile, net of special gains and losses is expected to decrease by approximately \40 billion compared with the figure for the previous year. The expected decrease is on account of our forecast that some of the marketable securities valuation loss that was incurred in the first half is likely to remain in the second half.

Comments
Commenting on the company’s financial performance, Mr. Kanemitsu Anraku, managing director in charge of the accounting and finance group, made the following statement.

“For the company’s non-consolidated financial results for the first half, we managed to secure an operating profit in line with our previously announced earnings projection. The profit was achieved through the cost-cutting and streamlining efforts we vigorously promoted and through gains from favorable foreign exchange rates despite our reduced vehicle sales, which have been affected by the steeper-than-expected fall in overall domestic demand. However, although we initially expected to break even on a net basis, we showed a loss of \32.5 billion. This loss owed much to the heavy valuation loss we suffered on our marketable securities holdings, which had been hit hard by the fall in the stock market.
Our company unveiled its “Global Business Reform Plan” in May. During the first term, we steadily implemented measures set forth in the plan to strengthen our financial position by cutting global inventories and selling assets. We thus pushed company management by focusing our resources on selected business areas.
These endeavors notwithstanding, we project a non-consolidated net loss of \10 billion for the current fiscal year ending March 31, 1999 because some of the valuation loss on our marketable securities holdings sustained in the first half are expected to remain in the second half.
For consolidated financial results for the current fiscal year, we expect a net loss of \30 billion due to a marketable securities valuation loss resulting from falls in share prices, the adverse effect of a decrease in the value of the Mexican peso and other factors.

Contact: Foreign Media Section
03-5565-2147

”

Nissan Results, 11/10/’98

(more)
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NON-CONSOLIDATED FINANCIAL RESULTS
(For the first half of fiscal years ending/ended March 31, 1999 and 1998)
			(millions of yen)
		Apr.-Sep.	Apr.-Sep.
		1998	1997	Change (%)
Net sales		1,638,584	1,776,101	-7.7
Operating income (1)		20,607	50,511	-59.2
Ordinary income (2)		28,844	45,356	-36.4
Net income		-32,548	38,502	---
Net income per share (yen) (3)		-12.95	15.32	---
(1) After enterprise tax, which is accounted as "Income taxes" in the corresponding statement in Nissan's annual report.
(2) Before special gains/losses and income taxes.
(3) Calculated based on the following average number of shares of common stock outstanding during first half of fiscal years
ending/ended March 31, 1999 and 1998:	Apr. 1 - Sep. 30, 1998 --- 2,513,044 thousand shares
		Apr. 1 - Sep. 30, 1997 --- 2,513,012 thousand shares
DIVIDENDS
		Apr.-Sep.	Apr.-Sep.
		1998	1997
Interim dividends per share (yen)		0.00	3.00
FINANCIAL CONDITION
		September 30	September 30
		1998	1997
Total assets (millions of yen)		3,638,129	3,202,368
Shareholders' equity (millions of yen)		1,479,759	1,559,375
Equity ratio (%)		40.7	48.7
Shareholders' equity per share (yen) *		588.83	620.52
* Computed based on the following number of shares of common stock outstanding as of September 30, 1998 and 1997:
		September 30, 1998 --- 2,513,044 thousand shares
		September 30, 1997 --- 2,513,018 thousand shares
Note: Unrealized gain/ loss as of September 30, 1998:
	Marketable Securities belonging to current and fixed assets:	110,067 million yen
	Derivative transaction:		12,131 million yen
FORECAST OF FISCAL YEAR ENDING MARCH 31,			1999 (Apr. 1998 - Mar.	1999)
		(millions of yen)
		Full-year
Net sales		3,400,000
Ordinary income		70,000
Net income		-10,000
Cash dividends per share (yen)		5

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VEHICLE PRODUCTION
(For the first half of fiscal years ending/ended March 31, 1999 and 1998)
		Apr.-Sep.	Apr.-Sep.
		1998	1997	Change (%)
Worldwide production (units)		1,230,590	1,378,322	-10.7
Domestic		746,655	854,048	-12.6
Overseas		483,935	524,274	-7.7
NON-CONSOLIDATED SALES BY PRODUCT LINE
(For the first half of fiscal years ending/ended March 31, 1999 and 1998)
		Apr.-Sep.	Apr.-Sep.
		1998	1997	Change (%)
Vehicle sales (units)
Total vehicle sales		779,291	850,199	-8.3
	Domestic	434,754	492,737	-11.8
	Export	344,537	357,462	-3.6
Passenger cars		670,017	727,508	-10.5
	Domestic	380,920	419,203	-13.6
	Export	289,097	308,305	-6.2
Commercial vehicles		109,274	122,691	4.3
	Domestic	53,834	73,534	-1.3
	Export	55,440	49,157	12.8
Net sales (millions of yen)
Total net sales		1,638,584	1,776,101	-7.7
	Domestic	837,625	967,766	-13.4
	Export	800,959	808,335	-0.9
Vehicles		1,287,758	1,416,066	-9.1
	Domestic	699,906	820,643	-14.7
	Export	587,852	595,422	-1.3
Production parts & components
for overseas production		120,697	134,315	-10.1
	Domestic	---	---	---
	Export	120,697	134,315	-10.1
Automotive parts and others		195,275	187,318	4.2
	Domestic	117,104	122,337	-4.3
	Export	78,170	64,981	20.3
Forklifts & marine equipment		23,217	25,814	-10.1
	Domestic	8,978	12,198	-26.4
	Export	14,239	13,616	4.6
Aerospace equipment		11,635	12,587	-7.6
	Domestic	11,635	12,587	-7.6
	Export	---	---	---
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Contact:	Keiichi Tsuboi, Foreign Media Section
	Tel: (03)5565-2147