Nissan Motor Co., Ltd. announced first quarter financial results for the three months to June 30, 2017. Nissan generated an operating profit of 153.3 billion yen on net revenues of 2.76 trillion yen. Overall, results were in line with the company’s expectations for the first quarter and the company expects improved profitability for the remainder of the year driven by its product cadence.
The following table summarizes Nissan’s financial results for the three-month period to June 30, 2017, calculated under the equity accounting method for the Group’s China joint venture. Operating profits declined 12.8% compared to the prior year primarily due to the conditional change resulting from the divestiture of Calsonic Kansei, rising raw material costs, and adverse foreign exchange impacts. Net income was down 1.1%.
First Quarter FY16
First Quarter FY17
% change year on year
Revenues
2,654.5
2,760.4
+4.0
Operating profit
175.8
153.3
-12.8
Operating margin %
6.6
5.6
-1.0
Ordinary profit
198.2
189.6
-4.4
Net income
136.4
134.9
-1.1
On a management pro forma basis, which includes the proportionate consolidation of results from Nissan’s joint venture operation in China, operating profit was 185.7 billion yen on net revenues of 3.03 trillion yen, representing a margin of 6.1%.
For the first quarter, Nissan total unit sales were 1.351 million units, an increase of 5%. Sales in Japan continued to improve following the resumption of Kei car sales and encouraging strong demand for registered vehicles, including models such as the Note e-POWER and the Serena with ProPILOT autonomous drive technology. Nissan saw unit sales rise by 45.6% to 131,000 units, resulting in a market share improvement of 2.6 points to 10.9%.
In the U.S., Nissan’s sales increased 1.2% to 403,000, equivalent to a market share increase of 0.4 points to 9.1%, amid continued demand for SUVs including the Rogue and recently launched Rogue Sport.
Nissan unit sales in China, which reports figures on a calendar year basis, increased 5.3% to 314,000 units. The market share in China was flat at 4.7% for the quarter.
In Europe, including Russia, Nissan’s sales totaled 185,000 units, an increase of 1.1%. Excluding Russia, Nissan’s sales decreased 0.2% to 162,000 units due primarily to planned model changeovers. Nissan’s market share in Europe was flat at 3.6%.
In other markets, including Asia and Oceania, Latin America, the Middle East and Africa, Nissan’s sales increased 1.2% to 188,000 units despite volatile demand in some markets.
