- Nissan reports financial results in line with company expectations despite rising raw material costs, adverse foreign exchange impacts, and slower than anticipated growth in key markets.
- Sales in Japan up 45.6%, US sales up more than total industry volume at 1.2%, sales in China up 5.3%, sales in Europe up 1.1%, and sales in other markets, including Asia and Oceania, Latin America, the Middle East and Africa up 1.2%.
Dubai, UAE, 27 July, 2017: Nissan Motor Co., Ltd. today 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.
Fiscal Year 2017 First Quarter Financial Highlights
The following table summarizes Nissan's financial results for the three-month period to June 30, 2017, calculated under the equity accounting method for the Group's China joint venture. Operating profits declined 12.8% 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%.
First Quarter FY17
(TSE report basis – China JV equity basis)1
|Yen in billions
year on year
|Operating margin %
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%.
For the first quarter, Nissan total unit sales were 1.351 million units, an increase of 5%. 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% to 131,000 units, resulting in a market share improvement of 2.6 points to 10.9%.
In the U.S., Nissan's sales increased 1.2% to 403,000, equivalent to a market share increase of 0.4 points to 9.1%, 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% to 314,000 units. The market share in China was flat at 4.7% for the quarter.
In Europe, including Russia, Nissan's sales totaled 185,000 units, an increase of 1.1%. Excluding Russia, Nissan's sales decreased 0.2% to 162,000 units due primarily to planned model changeovers. Nissan's market share in Europe was flat at 3.6%.
In other markets, including Asia and Oceania, Latin America, the Middle East and Africa, Nissan's sales increased 1.2% to 188,000 units despite volatile demand in some markets.
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 all-new 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 FY17 Outlook – TSE report basis – China JV equity basis1
Nissan also continues to forecast a 10.4% increase in the dividend to 53 yen per share for fiscal year 2017.
1Since 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.
2Net income attributable to owners of the parent