Nissan Motor Co.
) witnessed a 15% fall in profits to ¥72.3 billion ($903.5 million)
or ¥17.24 (21 cents) per share in the first quarter of fiscal 2012
ending March 31, 2013, from ¥85.0 billion or ¥20.32 in the
corresponding quarter last year. Reported profit also missed the
Zacks Consensus Estimate of 51 cents per share.
Revenues in the quarter grew 2.6% to ¥2.14 trillion ($26.64
billion). Unit sales increased 14.6% to 1.21 million vehicles
globally. Net sales grew 12.4% to ¥1.1 trillion ($13.80 billion) in
Japan, 7.2% to ¥754.9 billion ($9.4 billion) in North America and
6.1% to ¥518.8 billion ($6.5 billion) in Asia. However, revenues in
Europe declined 12.8% to ¥371.5 billion ($4.6 billion) during the
Operating profit in the quarter fell 20% to ¥120.7 billion ($1.5
billion) from ¥150.4 billion in the year-ago quarter. The decrease
in operating income was due to unfavorable foreign currency
translation, high selling costs in North America due to product
renewal cycle and unfavorable pricing.
During the quarter, Nissan executed its Power 88 mid-term business
plan. The program will enhance the company's product portfolio and
strengthen its brand value and sales volume around the world. The
company launched Nissan Altima in the U.S. and the Nissan NV350
Caravan in Japan as a part of the program.
Nissan's cash on hand and in banks decreased to ¥697.9 billion
($8.7 billion) as of June 30, 2012 from ¥765.4 billion as of March
31, 2011. Total debt went up to ¥2.2 trillion ($28.6 billion) as of
June 30, 2011 from $2.1 trillion as of March 31, 2012.
In the first quarter of fiscal 2012, the company reported cash
outflow from operating activities of ¥37.3 billion ($466.6 million)
compared with a cash inflow of ¥178,563 million in the year-ago
Nissan expects to launch new products and renew major lineups
across its namesake, Infiniti and Venucia brands. The company
expects total sales to increase 9.5% to ¥10.3 trillion ($128.8
billion) for fiscal 2012.
Operating income is projected to surge 28.2% to ¥700 billion
($8.75 billion). Profits are expects to go up 17.2% to ¥400 billion
($5 billion) or ¥95.44 ($1.19) per share for the year.
HONDA MOTOR (HMC): Free Stock Analysis Report
NISSAN ADR (NSANY): Free Stock Analysis Report
TOYOTA MOTOR CP (TM): Free Stock Analysis
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Nissan Motor is the sixth largest automaker in the world. The
company along with its subsidiaries engages in the production and
sale of automotive products, industrial machinery and marine
equipment, primarily in Japan, North America, and Europe. It offers
passenger cars, trucks, buses, forklifts, light commercial
vehicles, power trains and parts, as well as sales financing
activities. It competes with
Honda Motor Co.
Toyota Motor Corporation
Currently, Nissan retains a Zacks #1 Rank, which translates into a
short-term (1 to 3 months) Strong Buy rating. We have a long-term
(more than 6 months) Outperform recommendation on the stock.