Nissan Motor Co., Ltd. announced financial results for the 12 months to 31 March 2015.

The company delivered solid full-year revenues and profits. Robust demand, especially for new products in North America and Western Europe, along with cost efficiencies and the continued correction in the yen-dollar exchange rate, offset challenging market conditions in Japan and several emerging markets.

President and Chief Executive Officer of Nisaan, Carlos Ghosn, said:

These are solid results in a highly competitive market-place. We have been encouraged by demand for our new products. In the year ahead, we will remain focused on delivering continued revenue and profit growth, driven by our product and technology offensive, cost and sales discipline, and growing synergies from the Renault-Nissan Alliance. These actions will ensure we remain on the right path towards our mid-term strategic goals.’

Operating profit rose to 589.6 billion yen for fiscal year 2014, representing a 5.2% margin on net revenues that reached 11.38 trillion yen for the period.

In the fourth quarter, operating profits were 171.6 billion yen; net income reached 118.8 billion yen; and revenues increased by 2.6% to 3.29 trillion yen.

On a management pro-forma basis, which includes proportional consolidation of results from Nissan’s joint venture operation in China, fiscal year 2014 net revenues increased to 12.41 trillion yen, up 8.5% year-on-year. Pro-forma operating profit rose by 18.6% to 718.6 billion yen compared with fiscal year 2013. This resulted in a 5.8% operating profit margin.

FY2015 Outlook

For fiscal year 2015, Nissan expects to sell 5.55 million units, up 4.4% and equivalent to a global market share of 6.5%. New models, including the Nissan Maxima, Lannia and Infiniti Q30, are expected to contribute to fiscal year 2015 sales growth.


Based on this sales outlook, Nissan has filed the following forecast with the Tokyo Stock Exchange for the twelve month period ending March 31, 2016:

Nissan FY2015 Outlook – TSE report basis – China JV equity basis*
Net revenue12.10 trillion($105.2 billion/€93.1 billion)
Operating profit675.0 billion($5.9 billion/€5.2 billion)
Ordinary profit765.0 billion($6.7 billion/€5.9 billion)
Net Income485.0 billion($4.2 billion/€3.7 billion)

*Calculated on exchange rate of JPY 115/USD and JPY 130/EUR


 

Results for 12 months to 31 March 2015 (TSE report basis – China JVequity basis)*FY2014Y-O-Y
Net revenue¥11.38 trillion($103.6 billion/€82.0 billion)+8.5%
Operating profit¥589.6 billion($5.4 billion/€4.3 billion)+18.3%
Net income¥457.6 billion($4.2 billion/€3.3 billion)+17.6%

*Based on average foreign exchange rates of JPY 109.8/USD and JPY 138.7/EUR for the 12-month period.


Nissan maintained its status as the fastest-growing automotive brand in the GCC for the third consecutive year, selling a record breaking 219,129 units in the 2014 financial year – up 3.3% on 2013. In addition, Nissan achieved the best ever customer satisfaction results through top-level quality customer service.

In the GCC, Nissan recorded an 18.1% sales increase with 185,135 units sold in 2014 versus 156,778 in 2013— increasing its market share by 0.8 ppt (percentage points) to reach 10.3%.

Nissan’s strategy for success is based on the well-known Nissan global growth strategy ‘Power 88’, which CEO Carlos Ghosn announced Nissan would achieve by 2016. Under the Power 88 Mid Term plan, Nissan Middle East announced that it will be targeting to sell 240,000 units in the GCC by fiscal year 2016 reaching 12.3% market share.

Nissan Middle East’s Managing Director, Samir Cherfan, said:

This is our third successive year of record growth in the Middle East and the momentum will continue due to our broad product line, top-quality customer service, outstanding dealership network, and commitment to our brand’s message of ‘innovation that excites’ that we live daily with all touch points and at all levels. The record breaking results are testament to the success of our Power 88 strategy. There are plenty of headwinds impacting the industry at the moment such as falling oil prices and currency fluctuations, plus closer to home there are instabilities in Iraq and the Azerbaijan regulations situation. However, Nissan has excelled in the last financial year and lofty targets will again be met in the next one.’

The sales of the famed Patrol, dubbed the ‘Hero of all Terrains in Life’, the facelifted Juke, the Nissan Sunny, Pathfinder and X-Trail have all been exceptional. The ever-popular Nissan Patrol notched record numbers over the period with 34,015 units leaving the region’s showroom floors, a 35% hike on financial year 2013. The Nissan Sunny also attributed to the record breaking results, by achieving 29,688 units in 2014 with 30% sales growth from last year. Nissan Pathfinder recorded 15% growth with 6,800 units, and the Nissan X-Trail recorded a significant growth increase of 300% versus 2013 with 4,400 units.

The 2014 period was not only successful for Nissan in terms of sales, but also in terms of awards as the Japanese automaker received 15 highly-regarded international and regional accolades, positioning Nissan as the most awarded automotive brand in the MENA region for the third consecutive year.

Nissan announced it will continue to position its regular maintenance costs below competition and will expand its line–up with genuine products such as engine oil, batteries and affordable parts for vehicles more than three years old.

Delivering on its after-sales promise, Nissan achieved record results in sales and service customer satisfaction reaching the top group level in the Gulf, and number one in three of the GCC countries. After one year of operation, Nissan has already entered the top four group in the KSA.

Nissan Motor Co. Ltd. became the first Japanese car manufacturer to establish a regional Middle East headquarters in June 1994. Nissan operations now cover over 20 countries across the region making it one of the best represented Japanese automotive brands in the Middle East. From its pioneering crossover vehicles and class-leading small cars to the legendary Nissan GT-R and all-conquering SUVs such as the ‘Hero of All Terrain’, Nissan Patrol, Nissan Middle East’s vehicle line-up is one of the broadest and most popular in the region, covering almost every segment of the automotive market.