Nissan reports net income of 523.8 billion yen for FY 2015

Nissan Motor Co., Ltd. today announced financial results for the 12 months to March 31, 2016.

The company delivered increased full-year revenues and profitability. Rising demand for new products in North America, Western Europe and China offset the impact of negative foreign exchange movements and slowing or declining sales in emerging markets.

Operating profit rose more than 34% to 793.3 billion yen for fiscal-year 2015, representing a 6.5% margin on net revenues that reached 12.19 trillion yen for the period.

On a management pro-forma basis, which includes the proportionate consolidation of results from Nissan’s joint venture operation in China, net revenues increased to 13.4 trillion yen in fiscal 2015, up 7.7% year-on-year. Pro-forma operating profit rose by 30.2% to 935.5 billion yen compared with fiscal-2014, representing a profit margin of 7.0%.

Globally, Nissan sold 5.42 million vehicles in the period, a 2.0% rise year-on-year.

“These solid results reflect the success of our continuing product offensive, particularly in the North American market,” said Carlos Ghosn, president and chief executive officer. “Encouraging demand for new models, combined with continued cost efficiency, helped us withstand currency headwinds and volatile trading conditions in several emerging markets.

“In the coming year, we will deliver further product innovation – particularly in autonomous-drive systems – and rising synergies from the Renault-Nissan Alliance. Looking ahead, we expect continued improvement in Nissan’s underlying performance as we focus on the demanding goals of the Power 88 mid-term plan. However, we have adopted a cautious outlook for the current fiscal year given continuing market and exchange rate volatility.”

FY2016 Outlook

Nissan expects to sell 5.6 million units in fiscal 2016, up 3.3% and equivalent to global market share of 6.3%.

Recently-launched models including the Nissan Maxima, Altima, Titan pick-up truck, and Infiniti Q30 are expected to contribute to global sales growth in the coming year.

Based on Nissan’s solid outlook for unit sales and cautious view on foreign exchange rates, the company has filed fiscal year forecasts to the Tokyo Stock Exchange. Calculated under the equity accounting method for our joint venture in China, the forecasts for the fiscal year ending March 31, 2017 are:

Calculated on exchange rate of JPY 105/USD and JPY 120/EUR

1Since 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.