TOKYO — Nissan Motor Co., Ltd., today announced that consolidated net income after tax totaled 110.2 billion yen (US $962 million, euro 783 million) in the first quarter of fiscal year 2006, ending March 31, 2007, up 4.2% compared with the same period a year ago. The rise in net income for 2006 reflects the exceptional charges taken in the same period in 2005 relating to accounting standards changes and the introduction of Nissan’s defined contribution pension plan.
Globally, Nissan sold a total of 826,000 vehicles in the April-to-June period, down 6.0%. Net revenue rose 3.1% to 2.210 trillion yen (US $19.30 billion, euro 15.71 billion).
Nissan’s operating profit totaled 153.3 billion yen (US $1.34 billion, euro 1.09 billion), down 25.7%. The decline was due in part to a one-time charge for a four-cylinder engine warranty provision in North America. Operating profit margin came to 6.9%. Ordinary profit amounted to 156.7 billion yen (US $1.37 billion, euro 1.11 billion), down 25.6%.
“As we predicted, the first half is proving to be challenging as we face significant headwinds and only one new model introduction,” said Nissan President and CEO Carlos Ghosn. “We are maintaining our forecast for the full fiscal year and remain confident that our new product introductions will provide a significant contribution to our business in the second half of this fiscal year, and to the achievement of Nissan Value-Up.”
In the second half of fiscal 2006, Nissan will release eight new models around the world, including the Sentra, Altima and Infiniti G35 sedans for the US.
Notes: Amounts in dollars and euros are translated for the convenience of the reader at the foreign exchange rates of 114.5 yen/dollar and 140.7 yen/euro, the average rates for the first three months of the fiscal year ending March 31, 2007.
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