NISSAN MOTOR COMPANY FINANCIAL RESULTS CORRECTION

  Download Word Version

FOR IMMEDIATE RELEASE

24 May 1999

Dear colleague

Regrettably an error crept into the press release re Nissan Motor Company financial results which you received earlier this week. The reference to the previous year's net income should have stated: "from a net loss of Yen 14 billion" and not "from a net profit of Yen 14 billion".

I enclose a revised release for your records.

* * * * * * *

For further information contact:

24787/240599

FOR IMMEDIATE RELEASE

21 May 1999

REVISED

Today Nissan Motor Co., Ltd announced its consolidated financial results for the fiscal year ending 31 March 1999.

A net loss of Yen 27.7 billion(£144.7 million) was reported for the financial year. This represented a deterioration of Yen 13.7 billion(£71.6 million), mainly due to increased corporate and other tax payments of Yen 30.1 billion, compared with the loss of Yen 14.0 billion(£73.1 million) for the previous fiscal year.

Consolidated operating income totalled Yen 109.7 billion, an increase of Yen 22.8 billion, + 26.3 per cent, from the Yen 86.8 billion recorded in the previous fiscal year. The higher operating income was primarily achieved by savings of approximately Yen 121 billion from cost cutting and other streamlining efforts and Yen 70 billion in the reduction of losses for the write-down in the value of vehicles in the US lease portfolio. The US operation moved back into the black, reaching an operating profit of Yen 23 billion compared with a loss of Yen 86 billion in the previous fiscal year.

Nissan's global vehicle sales declined by 26,000 units to 2.542 million, a fall of 1.0 per cent compared with the previous year. Sales in Japan fell by 109,000, however overseas sales increased by 83,000, as growth of 65,000 in Europe and an increase of 40,000 units in Mexico offset the fall of 22,000 units in North America.

Total sales increased 0.2 per cent to Yen 6,580 billion(£34.4 billion) compared with Yen 6,565 billion(£34.3 billion)for the previous year.

For the fiscal year ending March 2000 NML forecasts global net sales of Yen 6,300 billion, a fall of Yen 280 billion from the previous year due to appreciation of the yen and a forecast decline in Japanese domestic sales. Operating income for the current fiscal year is projected at Yen 100 billion, approximately equal with the income for the previous year.

Kanemitsu Anraku, executive vice president and CFO, commented, "We reduced interest-bearing liabilities by Yen 400 billion as planned by reducing inventories worldwide and selling asset holdings in line with our Global Business Reform Plan (announced last May), unfortunately our profits declined from the level of the previous fiscal year, mainly because of the protracted slump in domestic vehicles demand and unfavourable business conditions in Mexico affected by the depreciation of the peso.

"In order 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."

ends;

For further information contact:

24787a/240599