Nissan Reports Third-Quarter Results For Fiscal Year 2018

February 12, 2019 by Nissan

YOKOHAMA, Japan – Nissan Motor Co., Ltd. today announced financial results for the three-month period to Dec. 31, 2018.

For the quarter, Nissan generated an operating profit of 103.3 billion yen on net revenues of 3.05 trillion yen, equivalent to an operating margin of 3.4%. Overall operations continued to improve in the third quarter, despite consistently challenging market conditions: In Japan, China, Thailand, the Philippines and Latin America the company's vehicle sales outperformed the market. While sales decreased in the U.S., quality of sales improved.

The company's results for the full fiscal year also reflect 9.2 billion yen that had not been booked in prior fiscal years.

TSE report basis – China JV equity basis¹

Yen in billions	FY17 Q3	FY18 Q3	% change year on year
Revenues	2,875.5	3,045.7	+5.9
Operating profit	82.4	103.3	+25.4
Net income2	301.6	70.4	-76.7

Taking the factors described above into account, in the first nine months of the fiscal year, Nissan generated net revenues of 8.58 trillion yen and an operating profit of 313.7 billion yen, a decrease of 13.9% over the same period of fiscal year 2017.

TSE report basis – China JV equity basis¹

Yen in billions	FY17 Q3 YTD	FY18 Q3 YTD	% change year on year
Revenues	8,528.0	8,578.4	+0.6
Operating profit	364.2	313.7	-13.9
Operating margin %	4.3	3.7	-0.6 ppt
Ordinary profit	496.7	471.8	-5.0
Net income2	578.1	316.7	-45.2

In the first nine months of the fiscal year, on a management pro forma basis, which includes the proportionate consolidation of results from Nissan's joint venture operation in China, operating profit was 451.0 billion yen, equivalent to an operating margin of 4.7%, and net income2 was 316.7 billion yen.

In the first nine months of the year, global total industry volume increased 0.3% to 68.74 million units over the same period of fiscal 2017. Over the same period, Nissan's global unit sales were 4.02 million units, a decrease of 2.1%, with growth in Japan, China and other markets offset by decreases in North America and Europe. This was equivalent to a global market share of 5.9%, down 0.1 percentage point from a year earlier.

 

Outlook

Given the performance in the first nine months of the year, the company has revised its full-year forecasts. It expects to sell 5.60 million vehicles in fiscal 2018.

The company has filed the following revised 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, 2019 are:

 

Nissan FY18 Outlook – TSE report basis – China JV equity basis¹

Yen in billions	Previous FY18 Forecast	Revised FY18 Forecast	Change in Forecast
Revenues	12,000	11,600	-400
Operating profit	540	450	-90
Net income2	500	410	-90

 

1 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.

2 Net income attributable to owners of the parent