Nissan H1 profit down, sales up
Operating profit of 281.8 billion yen, down 13.2 percent from 324.8 billion yen last year. Operating margin fell to 5 percent from 6.2 percent last year.
Excluding special item costs associated with final vehicle inspection issues in Japan and class action settlements in the US, first-half operating profits reached 322.6 billion yen, in line with company expectations.
In the second quarter, excluding special item costs, operating profits rose 9.2% to 169.3 billion yen amid rising unit sales in markets including Japan and China.
Net revenues for the first half, however, grew 8.1 percent to 5.65 trillion yen from 5.23 trillion yen last year.
Globally, Nissan sold a total of 2.73 million vehicles in the first half of fiscal year 2017, up 4.6 percent from last year.
In Japan, Nissan's sales rose 34.1% and in China, which reports figures on a calendar year basis, rose 6.7%. Nissan sales in the US declined 0.4%.
Further, for the 12 months ending March 31, 2018, the company has revised its operating profit guidance downward by 40 billion yen to 645 billion yen to reflect the expected net impact related to vehicle final inspection issues in Japan, after taking account of other cost efficiency offsets.
The company also shared the details of Nissan's ongoing midterm plan "Nissan M.O.V.E. to 2022". The mission of the six-year plan is to achieve sustainable growth and to lead the technology and business evolution of the automotive industry.
By the end of the plan, under the proportional consolidation of our Chinese joint venture, Nissan aims to grow revenues from 12.8 trillion yen to 16.5 trillion yen, and generate a cumulative 2.5 trillion yen of automotive free cash flow, with an 8% operating margin. ■