Nissan Announces Financial Results
27 May 1998
Nissan Announces Financial Results for the Fiscal Year That Ended March 31, 1998
NEW YORK, May 27 -- Nissan Motor Co., Ltd.
today announced its consolidated and non-consolidated financial results for
the fiscal year that ended on March 31, 1998.
Consolidated Results
Unit Sales
Nissan's global vehicle sales for the fiscal year under review came to
2,568 thousand units, representing a decrease of 142 thousand units or 5.2%
from the results of the previous year. The company's domestic sales declined
by 158 thousand units. However, its overseas sales increased by 16 thousand
units, as increased sales in Mexico, Europe, the Middle East, and other areas
enough to offset the fall in North America.
Net Sales
The company's consolidated net sales for the latest fiscal year came to
$49,358.2 million (6,564.6 billion yen), a decrease of 94.2 billion yen or
1.42% from the previous fiscal year. The decrease was mainly attributable to
approximately 220 billion yen of reduced unit vehicle sales despite the effect
of yen's depreciation for approximately $939.8 million (125 billion yen).
Operating Income
Its consolidated operating income came to $634.2 million (84.3 billion
yen), a decrease of 112.2 billion yen or 57.1% from the results of the
previous fiscal year. The lower operating income was primarily due to an
85 billion yen reduction in reduced unit sales, a 50 billion yen increase in
development costs and other expenses, a 25 billion yen increase in costs for
sales promotion in Japan and a $676.7 million (90 billion yen) losses for the
write-down in the carrying value of vehicles in the U.S. lease portfolio. On
the positive side, our cost-cutting and streamlining efforts brought savings
of $751.9 million (100 billion yen) and the effect of yen's depreciation of
$263.2 million (35.0 billion yen). By geographical segment, the decrease in
operating income of 112.2 billion yen comprises a decrease of 58.5 billion yen
in domestic earnings, 67.7 billion yen in overseas earnings, and a gain of
14.0 billion yen from the consolidating adjustments.
Ordinary Income
The non-operating profit declined by 23.8 billion yen, mainly due to a
decrease of 24.9 billion yen in the income from inflationary gain coming from
the change in monetary position based on the Mexican GAAP, an increase of
33.6 billion yen in the evaluation losses on marketable securities, despite of
an improvement of 14.5 billion yen in interest income and expenses resulting
primarily from lower interest rates in Japan, an increase of 7.4 billion yen
in profits from the disposal of marketable securities, and a decrease of the
effect of yen's appreciation for 9.0 billion yen. Consequently, ordinary
income came to $35.3 million (4.7 billion yen), representing a drop of
136.0 billion yen or 96.7% from the results of the previous fiscal year.
Net Income/Loss
The company's extraordinary section improved by 13.9 billion yen, mainly
due to a decrease of 11.5 billion yen in fixed assets disposal losses, reduced
corporate and other tax payments of 35.2 billion yen, and a decrease of
4.8 billion yen in consolidating adjustments. As a result, the company showed
a consolidated net loss of $105.3 million (14.0 billion yen), representing a
drop of 91.7 billion yen from a net income of 77.7 billion yen recorded in the
previous fiscal year.
Consolidated Forecast for the Fiscal Year Ending March 1999
Nissan projects a consolidated net sales of 6,500 billion yen for the
fiscal year ending March 1999. The company expects to improve its ordinary
income to 70 billion yen and to break even on a net level.
Non-Consolidated Results
Net Sales
Non-consolidated net sales for the latest fiscal year came to
$26,662.6 million (3,546.1 billion yen), down 144.3 billion yen or 3.9% from
the previous fiscal year. In Japan, the total demand for new vehicle sales
dropped due to the unfavorable effects of an increase in the consumption tax
rate and the termination of special tax cuts. In this market environment,
Nissan's domestic vehicle sales came to 974 thousand units, down 152 thousand
units or 13.5% from the results of the previous fiscal year. Its domestic
vehicle registrations were 967 thousand units, down 164 thousand units or
14.5%. However, the company's share of the domestic market edged up 0.1% to
20.4%. Meanwhile, its exports, especially to the Middle East and Europe,
increased, totaling 711 thousand units. This figure represents an increase of
113 thousand units or 18.9% over the previous fiscal year.
Operating Income
The company recorded $643.8 million (85.6 billion yen) in operating
income, a decrease of 27.3 billion yen or 24.2% from the previous year as a
result of the drop in domestic sales amid the sluggish vehicle market in Japan
and increased development costs in spite of the increase in exports.
Ordinary Income
The company's non-operating income section improved by 4 billion yen over
the previous fiscal year, mainly ascribable to a decrease in interest payments
and profits from the disposal of marketable securities although there were
some negative factors such as an increase in losses from the appraisal of
marketable securities. As a result, its ordinary income came to
$433.9 million (57.7 billion yen), down 23.3 billion yen or 28.8% from
81.0 billion yen recorded in the previous fiscal year.
Net Income
The company's extraordinary losses increased by 11.5 billion yen from the
previous year to $308.9 million (41.1 billion yen), mainly because the company
wrote down book value of the shares by 33 billion yen in Nissan Motor Iberica
S.A. in Spain, which has no impact on net income on a consolidated basis. The
company reported a net profit of $124.4 million (16.5 billion yen),
representing a decrease of 34.8 billion yen or 67.8% from 51.3 billion yen for
the previous fiscal year.
Non-Consolidated Forecast for the Fiscal Year Ending March 1999
Nissan projects a non-consolidated net sales of 3,500 billion yen for the
fiscal year ending March 1999. The company estimates its ordinary income at
45 billion yen while expecting to break even on a net level.
Comments
Mr. Kanemitsu Anraku, managing director in charge of finance and
accounting, commented:
"We unfortunately suffered a net loss of $105.3 million (14.0 billion yen)
on a consolidated basis. This is largely because of a larger-than-expected
fall in domestic vehicle demand, the write-down in the carrying value of
vehicles in the U.S. lease portfolio, and evaluation losses on marketable
securities, although there were positive factors such as savings from our
streamlining efforts and the effect of yen's depreciation. Our company
unveiled a plan to reform our business globally the other day. In the pursuit
of one of the management objectives set forth in this plan of achieving a
consolidated operating profit to sales ratio of 5% in the fiscal year ending
March 2001 and 6% in the fiscal year ending March 2003, we intend to push
strongly ahead with this business reform plan by concentrating our resources
on selected spheres of activities and running our company in such a way as to
act speedily in response to the turbulent changes of the times."
NISSAN MOTOR CO., LTD.
NON-CONSOLIDATED FINANCIAL RESULTS
(For the fiscal years ended March 31, 1998 and 1997)
(thousands of dollars/
except per share)
(millions of yen) (133 yen=$1)
1998 1997 1998 Change (%)
Net sales 3,546,126 3,690,441 26,662,602 -3.90%
Operating
income (a) 85,626 112,917 643,805 -24.20%
Ordinary
income (b) 57,707 81,033 433,887 -28.80%
Net income 16,548 51,333 124,421 -67.80%
Net income
per share
(yen/dollar) (c) 6.59 20.43 0.05 --
Fully diluted
net income
per share (yen) -- 20.42 -- --
Ratio of
net income
to equity (%) 1.1 3.3 -- --
Return on
assets (%) (d) 1.7 2.5 -- --
Return on
sales (%) (d) 1.6 2.2 -- --
(a) After enterprise tax, which is accounted as "Income and other taxes"
in the corresponding statement in Nissan's annual report.
(b) Before special gains/losses and income and other taxes.
(c) Computed based on the following average number of shares of common
stock outstanding during fiscal years ended March 31, 1998 and 1997:
March 31, 1998 -- 2,513,018 thousand
March 31, 1997 -- 2,512,941 thousand
(d) Before special gains/losses and income and other taxes.
DIVIDENDS
1998 1997
Cash dividends per share (yen)
Interim 3 --
Year-end 7 7
Cash dividends applicable to
the year (millions of yen) 25,130 17,591
Payout ratio (%) 151.9 34.3
Ratio of dividends paid
to equity (%) 1.6 1.1
FINANCIAL CONDITION
(thousands of
dollars/
except per
share)
March 31 March 31 March 31
1998 1997 1998
Total assets (millions
of yen) 3,661,093 3,230,355 27,527,015
Shareholders' equity
(millions of yen) 1,529,898 1,538,453 11,502,992
Equity ratio (%) 41.80% 47.60% --
Shareholders' equity
per share (yen/dollars) (a) 608.78 612.2 5
(a) Computed based on the following number of shares of common stock
outstanding as of March 31, 1998 and 1997:
March 31, 1998 -- 2,513,044 thousand
March 31, 1997 -- 2,513,004 thousand
Note: Unrealized gain/ loss as of March 31, 1998:
Marketable Securities million yen thousands of dollars
belonging to
current and fixed assets: 223,748 1,682,316
Forward Exchange Contracts: 3,132 23,549
FORECAST OF FISCAL YEAR ENDING MARCH 31, 1999
(millions of yen)
(thousands of
dollars/
except per
share)
First half Full-year Full-year
Net sales 1,640,000 3,500,000 26,315,789
Ordinary income 5,000 45,000 601,504
Net income 0 0 0
Net income per share (yen) -- -- --
Cash dividends per share (yen) 0 5 --
VEHICLE PRODUCTION
(For the fiscal years ended March 31, 1998 and 1997)
1998 1997 Change (%)
Worldwide production
(units) 2,754,598 2,742,640 0.4
Domestic 1,671,510 1,662,776 0.5
Overseas 1,083,088 1,079,864 0.3
NON-CONSOLIDATED SALES BY PRODUCT LINE
(For the fiscal years ended March 31, 1998 and 1997)
1998 1997 Change (%)
Vehicle sales (units)
Total vehicle sales 1,685,503 1,724,228 -2.2
Domestic 974,111 1,125,984 -13.5
Export 711,392 598,244 18.9
Passenger cars 1,447,644 1,470,105 -1.5
Domestic 831,385 951,552 -12.6
Export 616,259 518,553 18.8
Commercial vehicles 237,859 254,123 -6.4
Domestic 142,726 174,432 -18.2
Export 95,133 79,691 19.4
Net sales (millions of yen) (thousands of dollars/
except per share)
1998 1997 1998 Change (%)
Total net
sales 3,546,126 3,690,441 26,662,602 -3.9
Domestic 1,921,124 2,196,716 14,444,541 -12.5
Export 1,625,002 1,493,725 12,218,060 8.8
Vehicles 2,804,785 2,862,636 21,088,609 -2.0
Domestic 1,603,440 1,874,570 12,055,940 -14.5
Export 1,201,345 988,065 9,032,669 21.6
Production
parts &
components
for overseas
production 276,264 337,468 2,077,173 -18.1
Domestic -- -- -- --
Export 276,264 337,468 2,077,173 -18.1
Automotive parts 368,902 400,639 2,773,699 -7.9
Domestic 250,128 257,416 1,880,662 -2.8
Export 118,774 143,223 893,038 -17.1
Forklifts &
marine
equipment 52,138 48,565 392,015 7.4
Domestic 23,520 23,597 176,842 -0.3
Export 28,618 24,968 215,173 14.6
Aerospace
equipment 44,035 41,132 331,090 7.1
Domestic 44,035 41,132 331,090 7.1
Export -- -- -- --
CONSOLIDATED FINANCIAL RESULTS
(For the fiscal years ended March 31, 1998 and 1997)
(millions of yen) (thousands of dollars/
except per share)
1998 1997 1998 Change (%)
Net sales 6,564,637 6,658,875 49,358,173 1.4
Operating
income (a) 84,346 196,523 634,180 57.1
Ordinary
income (b) 4,695 140,699 35,301 96.7
Net income (14,007) 77,743 (105,316) --
Net income
per share
(yen) (c) (6) 31 (42) --
Fully diluted
net income
per share (yen) (6) 31 (42) --
Ratio of net income
to equity (%) -- 6 -- --
Return on
assets (%) (d) 0 2 0 --
Return on
sales (%) (d) 0 2 0 --
(a) After enterprise tax, which is accounted as "Income and other taxes"
in the corresponding statement in Nissan's annual report.
(b) Before special gains/losses and income and other taxes.
(c) Computed based on the following average number of shares of common
stock outstanding during fiscal years ended March 31, 1998 and 1997:
March 31, 1998 -- 2,513,012 thousand
March 31, 1997 -- 2,512,933 thousand
(d) Before special gains/losses and income and other taxes.
Note: Equity in earnings of unconsolidated subsidiaries and
affiliates: million yen thousand dollars
Fiscal year ended March 1998: 7,400 55,639
Fiscal year ended March 1997: 10,303
FINANCIAL CONDITION
(thousands of
dollars/
except per
share)
March 31 March 31 March 31
1998 1997 1998
Total assets
(millions of yen) 7,883,786 7,473,778 59,276,586
Shareholders' equity
(millions of yen) 1,282,485 1,356,090 9,642,744
Equity ratio (%) 16.3 18.1 --
Shareholders' equity
per share (yen/dollars) (a) 510.33 539.63 3.8
(a) Computed based on the following number of shares of common stock
outstanding as of March 31, 1998 and 1997:
March 31, 1998 -- 2,513,040 thousand
March 31, 1997 -- 2,513,002 thousand
SEGMENT INFORMATION
(For the fiscal years ended March 31, 1998)
Net Sales Operating Income
million thousand million thousand
yen dollars yen dollars
Japan 4,504,795 33,870,639 107,741 810,083
North America 2,127,697 15,997,722 (68,310) (513,609)
Mexico 337,037 2,534,113 13,442 101,068
Europe 928,789 6,983,376 10,323 77,617
Others 284,778 2,141,188 5,341 40,158
Sub-total 8,183,096 61,527,038 68,537 515,316
Adjustment (1,618,459) (12,168,865) 15,809 118,865
Total 6,564,637 49,358,173 84,346 634,180
Assets
million thousand
yen dollars
Japan 5,102,499 38,364,654
North America 2,307,298 17,348,105
Mexico 310,526 2,334,782
Europe 731,226 5,497,940
Others 156,211 1,174,519
Sub-total 8,607,760 64,720,000
Adjustment (723,974) (5,443,414)
Total 7,883,786 59,276,586
FORECAST OF CONSOLIDATED FISCAL YEAR ENDING MARCH 31, 1999
(millions of yen)
March 31, 1999
Net sales 6,500,000
Ordinary income 70,000
Net income 0
Foreign Currency Translation
Foreign currency exchange rates have been calculated according to the
Current Exchange Rate Method for foreign currency translations involving
overseas subsidiaries in accordance with the translation method in the
Japanese Accounting Standards. It is required under this method that
income statements be translated by the average exchange rates and balance
sheets be translated by the rates at the balance sheet date (shareholders'
equity shall be translated by the historical rates), while discrepancies
resulting from the difference in the exchange rates used for transactions
shall be shown in assets of the balance sheets as Foreign Exchange
Translation Adjustments.
APPLICATION OF CONSOLIDATION AND THE EQUITY METHOD
The number of consolidated subsidiaries: 201
Principal companies:
JATCO Corporation
Nissan Kohki Co., Ltd.
Yokohama Nissan Motor Co., Ltd.
Nissan Motor Corporation in U.S.A.
Nissan Motor Manufacturing Corporation U.S.A.
Nissan Mexicana, S.A. de C.V.
The number of affiliates consolidated by the equity method: 105
Principal companies:
Nissan Shatai Co., Ltd.
Nissan Diesel Motor Co., Ltd.
Calsonic Corporation
Companies newly consolidated in last fiscal year ended March 31, 1998: 6
Kanagawa Nissan Motor Co., Ltd.
Nissan Motor (China) Ltd.
and 4 other companies
Companies excluded from consolidation in last fiscal year: 4
Nissan Cherry Chiba Motor Sales Co., Ltd.
Nissan Chiba Parts Sales Co., Ltd.
and 2 other companies
Companies newly consolidated by the equity method in last fiscal year: 13
Digital TU-KA Shikoku Co., Ltd. and other 4 TU-KA companies
Yulon Motor Co., Ltd.
Siam Nissan Automobile Co., Ltd and other 5 companies in Thailand
Nissan Chiba Parts Sales Co., Ltd.
Companies excluded from consolidation by the equity method in last fiscal
year: 3
Nissan Artificial Reality Technology Corp.
and 2 other companies
Note 1: The accompanying financial data has been prepared in accordance
with generally accepted principles and practices in Japan.
Note 2: Amounts in U.S. dollars are provided solely for the convenience
of the reader. The rate of 133 yen=$1, the approximate rate of exchange on
March 31, 1998, has been used. The inclusion of such amounts is not intended
to imply that yen amounts have been or could be readily converted, realized or
settled in U.S. dollars or other notes.