Nissan net revenues declined 10.9 percent in last fiscal year

Nissan Motor Company Ltd. on May 12 announced financial results for the fiscal year 2009, ending March 31, 2010, and filed the following results with the Tokyo Stock Exchange:

• Net revenues of 7.5173 trillion yen (US $80.92 billion, euro 57.3 billion), down 10.9 percent from the prior year, with the stronger yen offsetting the increase in sales volume;
• Operating profit of 311.6 billion yen (US $3.35 billion, euro 2.38 billion);
• Ordinary profit of 207.7 billion yen (US $2.24 billion, euro 1.58 billion); and
• Net income of 42.4 billion yen (US $460 million, euro 320 million), compared to negative 233.7 billion yen in fiscal year 2008.

The full-year results were better than the forecast given when third-quarter financial results were filed on February 9, 2010. Significant contributors to Nissan's performance compared to last year were sales volume growth in emerging markets, especially in China, and the effective execution of recovery plan actions to counter the effects of the global financial and economic crisis.

"Fiscal year 2009 was an extremely challenging year. Within Nissan, we kept our focus on recovery, guided by our company's recovery plan," said Nissan president and CEO Carlos Ghosn. "Though we are still operating in crisis mode, Nissan is well on track toward complete recovery without any compromise to our strategic priorities."

Nissan sold a total of 3,515,000 vehicles worldwide in fiscal year 2009, a 3 percent increase compared with the prior year. In North America, sales were 1,067,000 units, down 5.8 percent; United States sales were 824,000 units, down 3.8 percent. In Japan, sales were 630,000 units, up 2.9 percent. In Europe, sales were to 517,000 units, down 2.4 percent. Sales in China reached 756,000 units, a 38.7 percent increase. Other markets totaled 545,000 units, down 7.8 percent.

In fiscal year 2009, new models released by Nissan included Infiniti G37 Convertible, 370Z Roadster, NV200 Vanette, Fuga, Roox, PIXO, Patrol and March.

FY2010 outlook
"Although we continue to operate in an environment that is volatile and uncertain, fiscal year 2010 will be an important year in which we launch an affordable, mass-market, all-electric, zero-emission vehicle, extend our presence in emerging markets and develop additional synergies in the Renault-Nissan Alliance," said Ghosn.

The global sales forecast for fiscal year 2010 is 3.8 million units, an increase of 8.1 percent. Nissan will launch 10 all-new products globally: the Nissan LEAF zero-emission car in the United States, Japan and Europe; Infiniti QX in the United States, Gulf Cooperation Council countries and Russia; the NV series of commercial vans and a convertible crossover in the United States; Quest minivan for both the United States and Canadian markets; Juke, Elgrand, a new minivan and a new minicar in Japan; and the second car in Nissan's global compact car lineup, an affordable sedan.

Nissan will continue to be fully engaged in its recovery plan, which is focused around three core pillars: revenue growth, tight cost management and free cash flow generation. The company aims to complete its recovery in fiscal year 2010.

Based on the company's outlook and assuming foreign exchange rates of 90 yen/dollar and 120 yen/euro, Nissan filed the following forecast for the fiscal year ending March 31, 2011, with the Tokyo Stock Exchange:

• Net revenues of 8.2 trillion yen (US $ 91.11 billion, euro 68.33 billion);
• Operating profit 350 billion yen (US $ 3.89 billion, euro 2.92 billion);
• Ordinary profit of 315 billion yen (US $ 3.5 billion, euro 2.63 billion);
• Net income of 150 billion yen (US $ 1.67 billion, euro 1.25 billion);
• Capital expenditures of 360 billion yen (US $ 4 billion, euro 3 billion); and
• R&D expenses of 430 billion yen (US $ 4.78 billion, euro 3.58 billion).

Based on the current state of business and weighing the risks and opportunities for this year, Nissan is planning to reinstate dividend payments for fiscal year 2010 at 10 yen for the full year -- 5 yen for the interim dividend and 5 yen for the year-end dividend.

Note 1: On February 9, 2010, Nissan filed the following forecast with the Tokyo Stock Exchange, based on foreign exchange rates of 92 yen/dollar and 132 yen/euro, for the fiscal year ending March 31, 2010 :

• Net revenues of 7.4 trillion yen (US $80.43 billion, euro 56.06 billion);
• Operating profit of 290 billion yen (US $3.15 billion, euro 2.2 billion);
• Ordinary profit of 180 billion yen (US $1.96 billion, euro 1.36 billion); and
• Net income of 35 billion yen (US $380 million, euro 270 million).

Note 2: Amounts in dollars and euros for the results are translated for the convenience of the reader at foreign exchange rates of 92.9 yen/dollar and 131.2 yen/euro, the average rates for the fiscal year ending March 31, 2010.