YOKOHAMA, Japan – Nissan Motor Co., Ltd. today announced financial results for the six-month period to Sept. 30, 2018.
In the first half, the company’s net revenue fell 2.1% to 5.53 trillion yen. Operating profit fell 25.4% to 210.3 billion yen, equivalent to an operating profit margin of 3.8%. This was largely due to a planned decrease in wholesale volume as part of the company’s ongoing efforts to reduce dealer inventory levels and improve the quality of sales. Thanks to the strength of Nissan’s operations in China, net income1 fell less steeply, declining 10.9% to 246.3 billion yen.
The company’s overall operations improved steadily in the first half despite consistently challenging market conditions. Optimization of global dealer inventory levels is ongoing, and to that end, planned adjustments were made to wholesale volumes in the second quarter. This resulted in a decrease in revenue, although retail sales volumes remained essentially the same as the previous year.
On a regional basis, substantial progress was made in improving the quality of sales by reducing inventories and optimizing incentive levels in the U.S. market. Sales in Japan recovered from the impact of last year’s final vehicle inspection issue. Meanwhile, sales volumes in Thailand, the Philippines and Latin America, in particular, increased substantially. The company’s operations in China also performed well during the period. Nissan will continue efforts to strengthen its business, with the aim of ensuring that performance recovers in the second half.
First-half financial highlights
The following table summarizes Nissan’s financial results for the six-month period to Sept. 30, 2018, calculated under the equity accounting method for the group’s China joint venture.
(TSE report basis – China JV equity basis)2
| FY17 H1 (billions of yen) |
FY18 H1 (billions of yen) |
% change (vs. year earlier) |
|
| Revenue | 5,652.5 | 5,532.7 | -2.1 |
| Operating profit | 281.8 | 210.3 | -25.4 |
| Operating margin % | 5.0 | 3.8 | -1.2 ppt |
| Ordinary profit | 369.5 | 329.9 | -10.7 |
| Net income1 | 276.5 | 246.3 | -10.9 |
On a management pro forma basis, which includes the proportionate consolidation of results from Nissan’s joint venture operation in China, operating profit was 306.7 billion yen, equivalent to an operating margin of 4.9%. Net income1 was 246.3 billion yen.
Sales performance
For the six-month period to Sept. 30, 2018, Nissan’s global vehicle sales fell 1.8% to 2.68 million units. This was equivalent to a global market share of 5.8%, down 0.2 percentage point from a year earlier.
In Japan, Nissan’s sales rose 0.5% to 285,000 vehicles, equivalent to a market share of 11.5%, up 0.1 percentage point from a year earlier, even as Japan’s total industry volume remained little changed at 2.48 million vehicles. Minivehicle model changeovers partly impacted sales figures. However, sales increased from a year earlier thanks to strong demand for models that embody the company’s Nissan Intelligent Mobility vision, including the new Nissan LEAF electric vehicle, the Serena e-POWER minivan, which went on sale in March, and the Nissan Note compact car, which led registered vehicle sales in Japan in the first half of the fiscal year.
In China, where Nissan reports figures by calendar year, vehicle sales rose 10.7% to 720,000 units, representing a market share of 5.4%, up 0.2 percentage point from a year earlier. Strong demand for models including the Nissan Sylphy, X-Trail and Kicks, as well as the Venucia D60, drove the increase.
In the U.S., Nissan’s sales fell 9.1% to 709,000 vehicles, equivalent to a market share of 8.1%.
Nissan sales in Europe, including Russia, fell by 12.1% to 330,000 vehicles, equivalent to a market share of 3.4%. Sales in Russia increased 2.4% to 50,000, equivalent to a market share of 5.6%.
In other markets, including Asia and Oceania, Latin America, the Middle East and Africa, Nissan’s sales rose 4.3% to 407,000 vehicles. Specifically, sales volume increased substantially in Thailand, the Philippines and Brazil.
1 Net income attributable to owners of the parent
2 Since the beginning of fiscal year 2013, Nissan has reported figures calculated under the equity method accounting for its joint venture with Dongfeng 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.
For detailed Nissan financial information and presentations:
www.nissan-global.com/EN/IR/FINANCIAL/
About Nissan Motor Co., Ltd.
Nissan is a global full-line vehicle manufacturer that sells more than 60 models under the Nissan, INFINITI and Datsun brands. In fiscal year 2017, the company sold 5.77 million vehicles globally, generating revenue of 11.9 trillion yen. On April 1, 2017, the company embarked on Nissan M.O.V.E. to 2022, a six-year plan targeting a 30% increase in annualized revenues to 16.5 trillion yen by the end of fiscal 2022, along with cumulative free cash flow of 2.5 trillion yen. As part of Nissan M.O.V.E. to 2022, the company plans to extend its leadership in electric vehicles, symbolized by the world's best-selling all-electric vehicle in history, the Nissan LEAF. Nissan’s global headquarters in Yokohama, Japan, manages operations in six regions: Asia & Oceania; Africa, the Middle East & India; China; Europe; Latin America; and North America. Nissan has partnered with French manufacturer Renault since 1999 and acquired a 34% stake in Mitsubishi Motors in 2016. Renault-Nissan-Mitsubishi is today the world’s largest automotive partnership, with combined sales of more than 10.6 million vehicles in calendar year 2017.
For more information about our products, services and commitment to sustainable mobility, visit
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Media contact
Koji Okuda or Nicholas Maxfield
+81-(0)45-523-5552
nissan_japan_communications@mail.nissan.co.jp
