Nissan Announces Financial Results for the First Half of the Fiscal Year
10 November 1997
Nissan Announces Financial Results For the First Half of Fiscal Year Ending March 31, 1998
NEW YORK, Nov. 10 -- Nissan Motor Co., Ltd.,
announced today its non-consolidated financial results for the first half
(April 1 - September 30, 1997) of the fiscal year ending March 31, 1998.
Non-consolidated net sales came to 1,776.1 billion yen ($14.7 billion)(a),
up 38.4 billion yen or 2.2% from the same period of the previous fiscal year,
marking the third consecutive increase for the first half of the fiscal year.
In the domestic market, industry-wide sales of new vehicles dropped due to the
discontinuation of a special income tax break and a hike in the consumption
tax in April. Amid this sluggish market environment, Nissan's total vehicle
deliveries to domestic dealers for the first half came to 493,000 units, down
30,000 units or 5.8% from the same period last year. The company's new
vehicle registrations for the term totaled 467,000 units, a decrease of
56,000 units or 10.7% from the corresponding period of last year. As a
result, its market share slipped 0.4 points from the same period of last year
to 20.6%. Meanwhile, exports during the term came to 357,000 units,
representing a year-on-year increase of 74,000 units or 26.3%. Robust export
results reflected increased shipments to other Asian countries, particularly
to China, and the Middle East.
Despite an increase in R&D expenditures as an investment for the future
and increased selling expenses, the company reported an operating profit of
50.5 billion yen ($417.4 million), an increase of 12.4 billion yen or
32.8% over the first half of the previous fiscal year. This increase was
brought about by the company's continued efforts to streamline its operations
and foreign exchange profits from the weakening of the yen. The company came
in with an ordinary profit of 45.3 billion yen ($374.8 million), an increase
of 14.4 billion yen or 46.7% from the previous year's first half profit of
30.9 billion yen. During the first half of the current fiscal year, the
company improved its net of non-operating income and expenses from a loss of
7.1 billion yen for the previous half to a loss of 5.1 billion yen
($42.6 million). This improvement of 1.9 billion yen is primarily due to the
lowering of interest expense and discount charges. As a result, the company
chalked up a net profit of 38.5 billion yen ($318.2 million), posting a
year-on-year increase of 26.8 billion yen from 11.6 billion yen recorded in
the previous first half. Net of special gains and losses came to a loss of
6.8 billion yen ($56.3 million), an improvement of 12.4 billion yen over the
figure for the previous half. The improvement is largely due to the absence
of special early retirement payments (12.0 billion yen) disbursed during the
previous first half.
For the outlook for the entire fiscal year ending March 1998, Nissan
projects an ordinary profit of 100 billion yen and a net profit of
55 billion yen on a non-consolidated level.
Commenting on the company's financial performance, Mr. Kanemitsu Anraku,
managing director in charge of the accounting and finance group, made the
following statement.
"Although we were confronted by a tough environment in the domestic market
affected by the greater-than-expected impact of the consumption tax hike and
the discontinuation of the special income tax cuts, we were able to show a
profit just about in line with our projections. Along with foreign exchange
gains, the wide-ranging streamlining measures that we continued to push helped
us secure the profits, thus enabling us to reinstate mid-term dividend
payments.
For the second half, although we face an uncertain outlook for the
economies in Japan and abroad, we intend to work hard to show an increase in
both net sales and profits for the third consecutive year.
To achieve our objectives, we will move ahead with our efforts to
strengthen the market appeal of our products and sales capability, while at
the same time continue working on improving our corporate structure and
management efficiency."
Note (a): Yen amounts are translated into U.S. dollars for the
convenience of the reader only, at 121 yen = 1 dollar, the
approximate exchange rate on September 30, 1997.
NON-CONSOLIDATED FINANCIAL RESULTS
(For the first half of fiscal years ending/ended March 31, 1998 and 1997)
(millions of yen) (millions of
dollars)
Apr.-Sep. Apr.-Sep. Apr.-Sep.
1997 1996 Change (%) 1997
Net sales 1,776,101 1,737,630 2.2 14,678.5
Operating income (a) 50,511 38,040 32.8 417.4
Ordinary income (b) 45,356 30,908 46.7 374.8
Net income 38,502 11,634 230.9 318.2
Net income
per share (yen) (c) 15.32 4.63 -- --
(a) After enterprise tax, which is accounted as "Income taxes" in the
corresponding statement in Nissan's annual report.
(b) Before special gains/losses and income taxes.
(c) Calculated based on the following average number of shares of common
stock outstanding during first half of fiscal years ending/ended
March 31, 1998 and 1997:
Apr. 1 - Sep. 30, 1997 -- 2,513,012 thousand shares
Apr. 1 - Sep. 30, 1996 -- 2,512,890 thousand shares
DIVIDENDS
(yen) (dollars)
Apr.-Sep. Apr.-Sep. Apr.-Sep.
1997 1996 1997
Interim dividends per share 3.00 --- 0.02
FINANCIAL CONDITION
(millions of yen) (millions of
dollars)
September 30 September 30 September 30
1997 1996 1997
Total assets 3,202,368 3,136,283 26,465.9
Shareholders' equity 1,559,375 1,498,696 12,887.4
Equity ratio (%) 48.7 47.8
Shareholders' equity
per share (yen) * 620.52 596.40 --
* Computed based on the following number of shares of common stock
outstanding as of September 30, 1997 and 1996:
September 30, 1997 -- 2,513,018 thousand shares
September 30, 1996 -- 2,512,922 thousand shares
Note: Unrealized gain/loss as of September 30, 1997:
Marketable Securities belonging to:
Current and fixed assets: 335,265 million yen, 2,770.8 million dollars
Derivative transactions: -7,246 million yen, -59.9 million dollars
FORECAST OF FISCAL YEAR ENDING MARCH 31, 1998
(millions of yen)
Full-year
Net sales 3,700,000
Ordinary income 100,000
Net income 55,000
Cash dividends per share (yen) 10.00
VEHICLE PRODUCTION
(For the first half of fiscal years ending/ended March 31, 1998 and 1997)
Apr.-Sep. Apr.-Sep.
1997 1996 Change (%)
Worldwide production (units) 1,377,966 1,302,692 5.8
Domestic 854,048 784,201 8.9
Overseas 523,918 518,491 1.0
NON-CONSOLIDATED SALES BY PRODUCT LINE
(For the first half of fiscal years ending/ended March 31, 1998 and 1997)
Apr.-Sep. Apr.-Sep.
1997 1996 Change (%)
Vehicle sales (units)
Total vehicle sales 850,199 806,207 5.5
Domestic 492,737 523,076 -5.8
Export 357,462 283,131 26.3
Passenger cars 727,508 682,236 6.6
Domestic 419,203 436,046 -3.9
Export 308,305 246,190 25.2
Commercial vehicles 122,691 123,971 -1.0
Domestic 73,534 87,030 -15.5
Export 49,157 36,941 33.1
(millions of yen) (millions of
dollars)
Apr.-Sep. Apr.-Sep. Change (%) Apr.-Sep.
1997 1996 1997
Net sales
Total net sales 1,776,101 1,737,630 2.2 14,678.5
Domestic 967,766 1,029,448 -6.0 7,998.1
Export 808,335 708,182 14.1 6,680.5
Vehicles 1,416,066 1,345,331 5.3 11,703.0
Domestic 820,643 886,792 -7.5 6,782.2
Export 595,422 458,539 29.9 4,920.8
Production parts
& components
for overseas
production 134,315 167,271 -19.7 1,110.0
Domestic -- -- -- --
Export 134,315 167,271 -19.7 1,110.0
Automotive parts 187,318 192,597 -2.7 1,548.1
Domestic 122,337 122,548 -0.2 1,011.0
Export 64,981 70,049 -7.2 537.0
Forklifts
& marine equipment 25,814 24,003 7.5 213.3
Domestic 12,198 11,681 4.4 100.8
Export 13,616 12,321 10.5 112.5
Aerospace equipment 12,587 8,426 49.4 104.0
Domestic 12,587 8,426 49.4 104.0
Export -- -- -- --
SOURCE Nissan Motor Co., Ltd.