Nissan Announces Financial Results for the Fiscal Year Ended March 31, 1999
21 May 1999
Nissan Announces Financial Results for the Fiscal Year Ended March 31, 1999
NEW YORK, May 21 -- Nissan Motor Co., Ltd. today announced
its consolidated and non-consolidated financial results for the fiscal year
that ended on March 31, 1999
Consolidated Results
Unit Sales
Nissan's global vehicle sales for the past fiscal year came to
2,542,000 units, a decrease of 26,000 units or 1.0% from 2,568,000 units sold
in the previous year. The company's domestic sales declined by 109,000 units.
However, overseas sales increased by 83,000 units, with growth of 65,000 units
in Europe and 40,000 units in Mexico more than offsetting the fall of 22,000
in North America.
Net Sales
The company's consolidated net sales for the fiscal year amounted to
$54,380.2 million (6,580.0 billion yen, an increase of 15.4 billion yen or
0.2% from 6,564.6 billion yen for the previous fiscal year). This increase
was a result of approximately 85 billion yen in exchange rate gains from the
weakening of the yen, and a decrease of approximately 70 billion yen from
reduced unit vehicle sales.
Operating Income
Nissan reported consolidated operating income totaling $906.8 million
(109.7 billion yen, an increase of 22.8 billion yen or 26.3% from the
86.8 billion yen reported last fiscal year). The higher operating income was
primarily due to savings of approximately 121.0 billion yen from cost-cutting
and other streamlining efforts, approximately 70 billion yen in the reduction
of losses for the write-down in the carrying value of vehicles in the U.S.
lease portfolio and approximately 20 billion yen in the effect of the
depreciation of the yen. These factors offset a decrease of approximately
191.0 billion yen from reduced unit sales and a deterioration of the model
mix.
By geographical segment, the 22.8 billion yen increase in operating income
resulted from a decrease of 86.6 billion yen in domestic earnings, an increase
of 99.5 billion yen in overseas earnings, and a gain of 9.9 billion yen from
the consolidating adjustments.
Ordinary Income
Non-operating profit declined by 10.6 billion yen from the previous year,
mainly due to a foreign exchange loss of $391.7 million (47.4 billion yen) in
Mexico, a deterioration of 18.8 billion yen in the profit/loss position based
on the equity method and a deterioration of 12.4 billion yen in the net of
financial transactions, despite an increase of 27.6 billion yen in the profits
of the sale of marketable securities, and the decrease of 31.3 billion yen in
the valuation loss on marketable securities. Consequently, ordinary income
came to $202.2 million (24.4 billion yen, representing an increase of
12.1 billion yen or 99.4% from the results of 12.2 billion yen for the
previous fiscal year).
Net Income/Loss
The company showed a consolidated net loss of $229.0 million
(27.7 billion yen, representing a drop of 13.7 billion yen from a net loss of
14.0 billion yen recorded in the previous fiscal year). This is due to an
increase of corporate and other tax payments for 30.1 billion yen, although
the company's extraordinary section improved by 4.1 billion yen mainly due to
an increase of 10.2 billion yen in profits on fixed assets disposal.
North America
In North America, Nissan reported a turnaround in operating income. "This
year we saw an operating income of $190.9 million (23.1 billion yen), compared
with a loss of $517.5 million (68.3 billion yen) in fiscal year 1997 -- a more
than $700 million (91.4 billion yen) turnaround," declared Minoru Nakamura,
President and CEO of Nissan North America, Inc.
Consolidated Forecast for the Fiscal Year Ending March 2000
Nissan projects consolidated net sales of 6,300 billion yen, a fall of
280 billion yen from the level of the past fiscal year. This is due to the
effects of yen appreciation and a decline in domestic net sales.
Operating income for the current fiscal year, ending March 31, 2000, is
projected at 100 billion yen, about even with that for the previous fiscal
year. This is because of expected savings from streamlining efforts under the
company's ongoing business reform plan which will be able to cover negative
factors such as foreign exchange losses from the appreciation of the yen.
Non-Consolidated Results
Net Sales
Non-consolidated net sales for the latest fiscal year came to
$27.4 billion (3,319.6 billion yen, down 226.5 billion yen or 6.4% from the
previous fiscal year). In Japan, total demand for new vehicle sales dropped
due to the prolonged slump of the nation's economy. In this market
environment, Nissan's domestic vehicle sales came to 874,000 units, down
100,000 units or 10.3% from the results of the previous fiscal year. Its
domestic vehicle registrations were 861,000 units, down 106,000 units or
10.9%. As a result, the company's share of the domestic market was 20.4%, the
same level as that for the previous fiscal year. Meanwhile, all in all, its
exports totaled 711,000 units, approximately the same level as the last fiscal
year as a result of increased exports to Europe and decreased exports to the
U.S. reflecting inventory adjustments and other factors.
Operating Income
The company recorded $125.3 million (15.1 billion yen in operating income,
a decrease of 70.5 billion yen or 82.3% from the previous year). The decrease
was mainly due to sluggish sales in Japan and lower sales in the US, despite
positive factors such as savings from streamlining efforts in and outside
Japan, foreign exchange gains and increased profit from the change in the
listing of royalty revenues from non-operating revenues to net sales.
Ordinary Income
The company's non-operating income section registered a loss of
500 million yen, marking an improvement of 27.4 billion yen over the previous
fiscal year. The improvement was mainly owing to profits from the increased
disposal of marketable securities. As a result, its ordinary income came to
$121.0 million (14.6 billion yen, down 43.1 billion yen or 74.6% from
57.7 billion yen recorded in the previous fiscal year).
Net Income
The company came in with a net loss of $287.7 million (34.8 billion yen,
representing a deterioration of 51.3 billion yen from a profit of
16.5 billion yen for the previous fiscal year).
Extraordinary losses for the company increased by 8.2 billion yen from the
previous year to $408.0 million (49.4 billion yen), mainly because the company
showed a valuation loss of investment securities for Nissan Diesel Sales Co.,
Ltd. and others despite increased profits from disposal of investment
securities and fixed assets.
Non-Consolidated Forecast for the Fiscal Year Ending March 2000
Nissan estimates non-consolidated net sales at 3,070 billion yen, down
approximately 250 billion yen from the previous year's level because of the
adverse effects of the yen's appreciation and a decrease in domestic net
sales.
The company expects to break even on an operating level because of
anticipated foreign exchange losses and considerable unfavorable effects of a
fall in domestic unit sales despite the streamlining efforts the company
intends to intensify.
Comments
Mr. Kanemitsu Anraku, executive vice president and CFO, commented that,
"We reduced interest-bearing liabilities by $3.3 billion (400 billion yen) as
planned during the business term by reducing inventories worldwide and selling
asset holdings in line with our Global Business Reform Plan that was announced
last May.
"In the consolidated financial accounts, we unfortunately saw our profits
decline from the level of the previous fiscal year mainly because of the
protracted slump in domestic vehicle demand and unfavorable business
conditions in Mexico affected by the depreciation of the peso.
"In order for us to counter a business climate which may turn worse than
expected, we will strive to establish a solid foundation for the company by
further accelerating the implementation of our business reform plan, and at
the same time, bringing into full play the benefits of our strategic alliance
with Renault."
Note 1: The accompanying financial data has been prepared in accordance
with generally accepted accounting and practices in Japan.
Note 2: Amounts in U.S. dollars are provided solely for the convenience
of the reader. The rate of _121=$1, the approximate rate of
exchange on March 31, 1999, 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.
CONSOLIDATED FINANCIAL RESULTS
(For the fiscal years ended March 31, 1999 and 1998)
(millions of yen) (thousands of dollars/
except per share)
FY ended March 31 1999 1998 1999 Change (%)
Net sales 6,580,001 6,564,637 54,380,174 0.2
Operating income(1) 109,722 86,883 906,793 26.3
Ordinary income(2) 24,463 12,266 202,174 99.4
Net income (27,714) (14,007) (229,041) --
Net income
per share (yen)(3) (11.03) (5.57) (0.09) --
Fully diluted net
income per share (yen) -- -- -- --
Ratio of net
income to equity(%) (2.2) (1.1) (2.2) --
Return on
assets(%)(4) 0.3 0.2 0.3 --
Return on sales(%)(4) 0.4 0.2 0.4 ---
(1) After enterprise tax, which is accounted as "Income and other taxes"
in the corresponding statement in Nissan's annual report.
(2) Before special gains/losses and income and other taxes.
(3) Computed based on the following average number of shares of common
stock outstanding during fiscal years ended March 31, 1999 and 1998:
March 31, 1999 ---2,513,044 thousand
March 31, 1998 ---2,513,018 thousand
(4) Before special gains/losses and income and other taxes.
FINANCIAL CONDITION (thousands of dollars/
except per share)
FY ended March 31 1999 1998 1999
Total assets
(millions of yen) 6,917,561 7,883,786 57,169,926
Shareholders' equity
(millions of yen) 1,254,595 1,282,485 10,368,554
Equity ratio (%) 18.2% 16.3% 18.2%
Shareholders' equity
per share (yen) * 499.24 510.33 4.13
SEGMENT INFORMATION
(For the fiscal year ended March 31, 1999)
Net Sales Operating income Assets
million thousand million thousand million thousand
yen dollars yen dollars yen dollars
Japan 2,863,603 23,666,140 22,597 186,752 4,828,867 39,907,992
North
America2,087,195 17,249,545 23,071 190,669 1,770,033 14,628,372
Mexico 232,249 1,919,413 9,339 77,182 284,190 2,348,678
Europe 1,122,876 9,279,967 25,018 206,760 816,486 6,747,818
Others 274,078 2,265,107 3,975 32,851 64,115 529,876
Sub-total6,580,001 54,380,174 84,000 694,215 7,763,691 64,162,736
Adjustment -- -- 25,722 212,579 (846,130) (6,992,810)
Total 6,580,001 54,380,174 109,722 906,793 6,917,561 57,169,926
FORECAST OF CONSOLIDATED FISCAL YEAR ENDING MARCH 31, 2000
(millions of yen) March 31, 2000
Net sales 6,300,000
Ordinary income 10,000
Net income (60,000)
APPLICATION OF CONSOLIDATION AND THE EQUITY METHOD
The number of consolidated subsidiaries: 203
Principal companies:
JATCO Corporation
Nissan Kohki Co., Ltd.
Yokohama Nissan Motor Co., Ltd.
Nissan North America, Inc.
Nissan Motor Manufacturing Corporation U.S.A.
Nissan Mexicana, S.A. de C.V.
The number of affiliates consolidated by the equity method: 101
Principal companies:
Nissan Shatai Co., Ltd.
Nissan Diesel Motor Co., Ltd.
Calsonic Corporation
Yulon Motor Co., Ltd.
Siam Nissan Automobile Co., Ltd.
Companies newly consolidated in last fiscal year ended March 31, 1999: 8
Kayou Nissan Motor Co., Ltd.
and 7 other companies
Companies excluded from consolidation in last fiscal year: 6
Ikeda Bussan Co., Ltd.
Nissan Finance Corporation Ltd.
and 4 other companies
Companies newly consolidated by the equity method in last fiscal year: 4
Automakers Ltd.
Ikeda Bussan Co., Ltd.
Nissan Graphic Arts Co., Ltd.
and 1 other company
Companies excluded from consolidation by the equity method in last fiscal
year: 8
Kinryo Kogyo Co., Ltd.
Yamato Kogyo Co., Ltd.
and 6 other companies
NON-CONSOLIDATED FINANCIAL RESULTS
(For the fiscal years ended March 31, 1999 and 1998)
(millions of yen) (thousands of dollars/
except per share)
1999 1998 1999 Change (%)
Net sales 3,319,659 3,546,126 27,435,198 -6.4%
Operating income (1) 15,165 85,626 125,331 -82.3%
Ordinary income (2) 14,646 57,707 121,041 -74.6%
Net income -34,809 16,548 -287,678 --
Net income per share
(yen/dollar) (3) -13.85 6.59 -0.11 --
Fully diluted net income
per share (yen) -- -- -- --
Ratio of net
income to equity (%) -2.3 1.1 -2.3 --
Return on assets (%) (4) 0.4 1.7 0.4 --
Return on sales (%) (4) 0.4 1.6 0.4 --
(1) After enterprise tax, which is accounted as "Income and other taxes"
in the corresponding statement in Nissan's annual report.
(2) Before special gains/losses and income and other taxes.
(3) Computed based on the following average number of shares of common
stock outstanding during fiscal years ended March 31, 1999 and 1998:
March 31, 1999 ---2,513,044 thousand
March 31, 1998 ---2,513,018 thousand
(4) Before special gains/losses and income and other taxes.
DIVIDENDS
FY ended March 31 1999 1998
Cash dividends per share (yen)
Interim 0.00 3.00
Year-end 0.00 7.00
Cash dividends applicable to the year
(millions of yen) 0 25,130
Payout ratio (%) 0.0 151.9
Ratio of dividends paid to equity (%) 0.0 1.6
FINANCIAL CONDITION (thousands of dollars/except per share)
FY ended March 31 1999 1998 1999
Total assets (millions of yen)3,595,272 3,661,093 29,712,992
Shareholders' equity
(millions of yen) 1,477,498 1,529,898 12,210,727
Equity ratio (%) 41.1% 41.8% ---
Shareholders' equity
per share (yen)* 587.93 608.78 4.86
* Computed based on the following number of shares of common stock
outstanding as of March 31, 1999 and 1998:
March 31, 1999 --- 2,513,044 thousand
March 31, 1998 --- 2,513,044 thousand
Note: Unrealized gain/ loss as of March 31, 1999:
Marketable Securities belonging to
current and fixed assets: 135,722 million yen
Derivative Transaction 4,776 million yen
VEHICLE PRODUCTION
FY ended March 31 1999 1998 Change (%)
Worldwide production (units) 2,465,863 2,754,598 -10.5%
Domestic 1,528,461 1,671,510 -8.6%
Overseas 937,402 1,083,088 -13.5%
NON-CONSOLIDATED SALES BY PRODUCT LINE
FY ended March 31 1999 1998 Change (%)
Vehicle sales (units)
Total vehicle sales 1,584,550 1,685,503 -6.0%
Domestic 873,705 974,111 -10.3%
Export 710,845 711,392 -0.1%
Passenger cars 1,355,082 1,447,644 -6.4%
Domestic 768,277 831,385 -7.6%
Export 586,805 616,259 -4.8%
Commercial vehicles 229,468 237,859 -3.5%
Domestic 105,428 142,726 -26.1%
Export 124,040 95,133 30.4%
Net sales (millions of yen)
Total net sales 3,319,659 3,546,126 -6.4%
Domestic 1,722,093 1,921,124 -10.4%
Export 1,597,565 1,625,002 -1.7%
Vehicles 2,616,536 2,804,785 -6.7%
Domestic 1,418,404 1,603,440 -11.5%
Export 1,198,132 1,201,345 -0.3%
Production parts & components
for overseas production 221,383 276,264 -19.9%
Domestic -- -- --
Export 221,383 276,264 -19.9%
Automotive parts 330,169 348,494 -5.3%
Domestic 232,494 244,857 -5.0%
Export 97,674 103,637 -5.8%
Forklifts & marine equipment 44,057 52,138 -15.5%
Domestic 16,906 23,520 -28.1%
Export 27,151 28,618 -5.1%
Aerospace equipment 51,157 44,035 16.2%
Domestic 51,157 44,035 16.2%
Export -- -- --