Nis­san re­ports first quar­ter re­sults for fis­cal year 2017

Kuwait Times - - BUSINESS -

DUBAI: Nis­san Mo­tor Co, Ltd yes­ter­day an­nounced first quar­ter fi­nan­cial re­sults for the three months to June 30, 2017. Nis­san gen­er­ated an op­er­at­ing profit of 153.3 bil­lion yen on net rev­enues of 2.76 tril­lion yen. Over­all, re­sults were in line with the com­pany’s ex­pec­ta­tions for the first quar­ter and the com­pany ex­pects im­proved prof­itabil­ity for the re­main­der of the year driven by its prod­uct ca­dence.

The Nis­san’s fi­nan­cial re­sults for the three-month pe­riod to June 30, 2017 (to­day), cal­cu­lated un­der the eq­uity ac­count­ing method for the Group’s China joint ven­ture. Op­er­at­ing prof­its de­clined 12.8 per­cent com­pared to the prior year pri­mar­ily due to the con­di­tional change re­sult­ing from the di­vesti­ture of Cal­sonic Kan­sei, ris­ing raw ma­te­rial costs, and ad­verse for­eign ex­change im­pacts. Net in­come was down 1.1 per­cent.

On a man­age­ment pro forma ba­sis, which in­cludes the pro­por­tion­ate con­sol­i­da­tion of re­sults from Nis­san’s joint ven­ture op­er­a­tion in China, op­er­at­ing profit was 185.7 bil­lion yen on net rev­enues of 3.03 tril­lion yen, rep­re­sent­ing a mar­gin of 6.1 per­cent.

Sales per­for­mance

For the first quar­ter, Nis­san to­tal unit sales were 1.351 mil­lion units, an in­crease of 5 per­cent. Sales in Ja­pan con­tin­ued to im­prove fol­low­ing the re­sump­tion of Kei car sales and en­cour­ag­ing strong de­mand for reg­is­tered ve­hi­cles, in­clud­ing mod­els such as the Note e-POWER and the Ser­ena with ProPILOT au­ton­o­mous drive tech­nol­ogy. Nis­san saw unit sales rise by 45.6 per­cent to 131,000 units, re­sult­ing in a mar­ket share im­prove­ment of 2.6 points to 10.9 per­cent.

In the US, Nis­san’s sales in­creased 1.2 per­cent to 403,000, equiv­a­lent to a mar­ket share in­crease of 0.4 points to 9.1 per­cent, amid con­tin­ued de­mand for SUVs in­clud­ing the Rogue and re­cently launched Rogue Sport. Nis­san unit sales in China, which re­ports fig­ures on a cal­en­dar year ba­sis, in­creased 5.3 per­cent to 314,000 units. The mar­ket share in China was flat at 4.7 per­cent for the quar­ter.

In Europe, in­clud­ing Rus­sia, Nis­san’s sales to­taled 185,000 units, an in­crease of 1.1 per­cent. Ex­clud­ing Rus­sia, Nis­san’s sales de­creased 0.2 per­cent to 162,000 units due pri­mar­ily to planned model changeovers. Nis­san’s mar­ket share in Europe was flat at 3.6 per­cent.

In other mar­kets, in­clud­ing Asia and Ocea­nia, Latin Amer­ica, the Mid­dle East and Africa, Nis­san’s sales in­creased 1.2 per­cent to 188,000 units de­spite volatile de­mand in some mar­kets.

Out­look

As pre­vi­ously stated this past May, the com­pany ex­pects to sell 5.83 mil­lion units in fis­cal 2017 as mod­els such as the Rogue Sport, re­freshed Qashqai and X-Trail, Kicks, Navara, and the all­new Nis­san LEAF are ex­pected to con­trib­ute to sales growth for the year as a whole.

Given this out­look, the com­pany has main­tained its fis­cal-year fore­casts. Cal­cu­lated un­der the eq­uity ac­count­ing method for Nis­san’s joint ven­ture in China, the fore­casts for the fis­cal year end­ing March 31, 2018 re­main:

Nis­san also con­tin­ues to fore­cast a 10.4 per­cent in­crease in the div­i­dend to 53 yen per share for fis­cal year 2017. 1 Since the be­gin­ning of fis­cal year 2013, Nis­san has re­ported fig­ures cal­cu­lated un­der the eq­uity method ac­count­ing for its joint ven­ture with Dong Feng in China. Al­though net in­come re­port­ing re­mains un­changed un­der this ac­count­ing method, the eq­uity-ac­count­ing in­come state­ments no longer in­clude Dong-Feng-Nis­san’s re­sults in rev­enues and op­er­at­ing profit. 2 Net in­come at­trib­ut­able to own­ers of the

par­ent.

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