The Japanese automaker faced significant costs associated with special items, inventory adjustments and negative pricing trends albeit things have improved in the last quarter of FY2018.
16 May 2018 | 3988 Views | By Mayank Dhingra
Nissan Motor Co, the No. 3 carmaker by sales volumes in Japan, has announced its results for the fiscal ended March 2018. While the company faced turbulence in the first nine months due to significant costs associated with special items, inventory adjustments and negative pricing trends, the situation partially recovered ...
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Nissan Motor Co, the No. 3 carmaker by sales volumes in Japan, has announced its results for the fiscal ended March 2018. While the company faced turbulence in the first nine months due to significant costs associated with special items, inventory adjustments and negative pricing trends, the situation partially recovered in the last quarter of FY2018.
The Group posted net revenues of Yen 11.95 trillion (Rs 724,000 crore), up 2 percent over the last fiscal and equivalent to a 4.8 percent operating margin. Its operating profit, however, stood at Yen 584.8 billion (Rs 34,836 crore) and registered a substantial de-growth of 22.6 percent, where the profit in FY2017 was pegged at Yen 742.2 billion (Rs 44,981 crore).
Full-year net income grew by 12.6 percent to Yen 746.9 billion (Rs 45,266 crore) as non-operating income and the favorable impact of US tax reforms more than compensated for the reduction in its operating profit (FY2017: Yen 663.5 billion / Rs 40,212 crore).
Sales performance
Treading on the path of its Nissan ‘M.O.V.E. to 2022’ mid-term plan, the Group's global unit sales rose 2.6 percent to record-high sales of 5.77 million units.
Sales in Japan stood at 584,000 units (+4.8%), mainly from contribution of the launch of the core models of Nissan Intelligent Mobility – the Note e-Power and the new Nissan Leaf.
In China, where Nissan reports figures on a calendar-year basis, unit sales rose 12.2 percent to 1.52 million units, equivalent to a market share of 5.6 percent, driven by demand for models including the Nissan X-Trail and Sylphy, as well as the growth of the Venucia brand.
In the US, its sales reached 1.59 million units, equivalent to a market share of 9.2 percent.
Nissan sales in Europe, excluding Russia, fell by 4.6 percent to 652,000 units, impacted by the market decline in the UK and intensified competition in the crossover segment – both of which have been areas of strength for Nissan – which resulted in a market share of 3.6 percent. Unit sales in Russia, however, rose 12 percent to 105,000 units.
In other markets, including Asia and Oceania, Latin America, the Middle East and Africa, Nissan’s sales rose 1.3 percent to 819,000 units.
Outlook for FY2019
The company expects to sell 5.92 million units in FY2019. Recently-launched models including the Serena e-Power, the new Nissan Leaf, the Datsun Cross and the Infiniti QX50 are expected to contribute to sales growth in this financial year. Sales are also expected to be enhanced by the launch of new models including the Altima, Sylphy Zero Emission and Terra.