Nissan: Second year of record profit

TOKYO, May 20 Reuters reported today that Nissan Motor Co reached a second year of record profits in the past year, a result that puts most of its painful restructuring behind it and sets the stage for growth led by new models.

Japan's third-largest automaker, 44.4 percent owned by France's Renault SA, on Monday reported 489.22 billion yen ($3.89 billion) in consolidated operating profit for the year ended on March 31, a 68.5 percent rise over the previous year.

Net profit soared 12.4 percent to 372.26 billion yen, also a record for a second straight year. Earnings per share were 92.61 yen compared with 83.53 yen a year earlier.

The results largely confirm preliminary numbers given by Nissan earlier this month, and mean the automaker has achieved its initial profit and debt-cutting targets one year ahead of schedule.

Leaving behind two years dominated by plant closures, 22,900 job cuts and the halving of its supplier base, the automaker is looking at this year as the first of three years of aggressive product-driven growth.

It is forecasting a jump to 553 billion yen in operating profit and 380 billion yen in net profit for this business year.

"The earnings momentum from Nissan's restructuring efforts should carry on until 2004," said William Nestuk, auto analyst at West LB Securities Pacific.

Over the three years, Nissan is looking to increase global sales by an extra one million vehicles -- taking annual unit sales to around 3.5 million, with zero debt for its automotive operations and an eight percent operating margin.

It plans to launch 28 new vehicles over the period, 12 in the current business year, for which it is projecting a 7.5 percent rise in vehicle sales to 2.792 million units, including minivehicles.

The automaker also said on Monday it was seeking shareholder approval to buy back up to 75 million of its own common shares or up to 100 billion yen worth.

The buyback amount, which would represent 1.7 percent of Nissan's outstanding shares, will be subject to approval at a meeting of shareholders on June 20.

"The authorization is to give us flexibility on working with our stock," said Nissan spokesman Gerry Spahn. "It does not signal any imminent share buyback."

Prior to the earnings announcement, Nissan's shares ended down 2.54 percent at 998 yen in line with declines shown by most automakers as the Japanese currency firmed slightly.

The stock has gained some 38 percent for the year to date and is up 1.3 percent since its May 9 estimates. ($1=125.88 yen)