Nissan generated an operating profit of 742.2 billion yen on net revenues of 11.72 trillion yen as strong sales in the US, China and Western Europe partly offset the impact of foreign exchange and weakness in emerging markets.
The following table summarizes Nissan’s financial results for the 12-month period to March 31, 2017, calculated under the equity accounting method for the Group’s China joint venture.
On a management pro forma basis, which includes the proportionate consolidation of results from Nissan’s joint venture operation in China, operating profit was 882.4 billion yen on net revenues of 12.84 trillion yen.
For the fiscal year, Nissan’s global unit sales were 5.63 million units.
In the US, Nissan’s sales rose by 4.2% to 1.58 million units, equivalent to a market share of 9.0%, amid solid demand for models including the Rogue and Altima.
Nissan unit sales in China, which reports figures on a calendar year basis, rose 8.4% to 1.35 million units, equivalent to market share of 5.0%. In Europe, excluding Russia, Nissan’s sales rose by 7.2% to 683,000 units, which resulted in a market share of 3.8%. The Qashqai SUV and Navara pickup helped drive demand in the region.
Nissan’s performance in these key markets helped offset challenging conditions in the Japanese market, reflecting the suspension of Kei car sales in the first half. Sales in Japan – where Kei car sales have resumed – reached 557,000 units for the 12-month period, representing a market share of 11.0%. In other markets including Asia and Oceania, Latin America, the Middle East and Africa, Nissan’s sales decreased 3.3% to 808,000 units.
The company expects to sell 5.83 million units in fiscal 2017. Recently-launched models including the Nissan Micra, Armada, Kicks, and Note e-POWER and Serena in Japan, are expected to contribute to sales growth in the coming financial year.
Based on Nissan’s solid outlook for unit sales, the company has filed the following fiscal-year forecasts to the Tokyo Stock Exchange. Calculated under the equity accounting method for Nissan’s joint venture in China, the forecasts for the fiscal year ending March 31, 2018 are:
Nissan is also forecasting a 10.4% increase in the dividend to 53 yen per share for fiscal year 2017.
Since 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. — SG