October 24, 2002
Sales and profits up at Nissan
Tokyo – Nissan Motor Company announced today that it expects to
report an 84% increase in operating profits for the first half of fiscal
year 2002. Record profits are attributed to a combination of higher volumes from new products,
more efficient operations and lower purchasing costs.
With a confident outlook for the second half, President and CEO Carlos Ghosn revised the
full-year operating profit upward by 30% from 553 billion yen to 720 billion
yen (US $5.8 billion, euro 6.2 billion). The company will file its official
audited report on November 19, 2002.
“We have been tenaciously laying the groundwork for growth, and today we see
that growth is here in a very challenging global market,” said Ghosn.
Ghosn also announced a three-year dividend policy that aims to triple
Nissan’s annual dividend of 8 yen per share for fiscal year 2001 to 24 yen
per share for fiscal year 2004.
On expected revenue of 3.28 trillion yen (US $26.6 billion, euro 28.2
billion) for the first half of the 2002 fiscal year, Nissan’s operating
income is expected to be 348 billion yen (US $2.8 billion, euro 3.0
billion), an 84% increase over the first half of FY 2001. The operating
margin is expected to be 10.6% of net sales, led by increased volumes in the
entry-level segment in Japan as well as strong sales of the Altima and a
rejuvenated Infiniti line in the United States.
Nissan also reported that net automotive debt was reduced to 274 billion yen
(US $2.2 billion, euro 2.4 billion) in the first half, from 432 billion yen
(US $3.5 billion, euro 3.7 billion) at the end of fiscal year 2001. The debt
reduction was realized by improved cash from operations as well as continued
Globally, Nissan retail sales totaled 1,386,000 units in the first half of
the fiscal year, an increase of 7.5% from the same half-year period of FY
2001. In Japan, volume rose 12.1% to 383,000 units (including mini-cars).
Entry-level cars such as the new March and Moco have driven the increase. In
the United States, volume was up 8.3% to 378,000 units, with the Nissan
Altima, Nissan 350Z and Infiniti G35 selling at a strong pace. In Europe,
sales declined 9.4% to 251,000 units from January to June as the company
focused on profitability, preparing for the launch of the new Micra in
fiscal year 2003. General overseas markets saw a 16.2% increase to 374,000
unit sales. In Mexico, volume is up 18.4%, led by the successful launch of
the Platina. In China, volume is up 80% to 36,000 unit sales.