Nissan Motor Co.
) posted a 7% increase in profits to ¥341.43 billion ($4.32
billion) or ¥81.67 ($1.03) per share in fiscal 2011 ended March 31,
2012 compared with ¥319.22 billion or ¥76.44 in the prior fiscal
year. However, the EPS was lower than the Zacks Consensus Estimate
Sales in the quarter appreciated 7% to ¥9.41 trillion ($118.95
billion) in the year. Operating profit inched up 2% to ¥545.84
billion ($6.90 billion) from ¥537.47 billion in fiscal 2010.
The improvement in revenues and profits was attributable to
strong demand for the company's vehicles, frequent product launches
during the year and market expansion programs. The company believes
investments in manufacturing capacity expansion, particularly in
China, North America, Brazil and Russia, will enhance sales volume
of the company.
The company released five new models during the year including
Tiida in China, Lafesta Highway Star in Japan, front-drive and
rear-drive versions of the NV400 commercial van in Europe and the
Infiniti JX in the U.S.
Due to these factors, the automaker recovered earlier from the
disruptions caused by the twin disasters in Japan and severe
flooding in Thailand last year compared with its domestic rivals,
Toyota Motor Corp.
Honda Motor Co.
In the fiscal year, Nissan's global sales totaled 4.85 million
units, up 16% from 4.18 million units last year. With this, the
company has outperformed the growth in total industry volumes of
4.2% to 75.7 million units from 72.6 million units in fiscal 2010.
Globally, it acquired a market share of 6.4% during the year, up
0.6 percentage points from the prior year.
Nissan's sales in its largest market, China, improved 22% to
1.25 million units. Meanwhile, its sales rose 12% to 1.08 million
units in the U.S., 17.5% to 713,000 units across Europe (including
Russia), 9% to 655,000 units in Japan and 16% to 826,000 units in
For fiscal 2012 ending March 31, 2013, Nissan expects revenues
of ¥10.3 trillion ($125.61 billion) based on a 10.4% increase in
unit sales to 5.35 million. The company plans to launch 10 products
globally including Altima, Pathfinder, Sylphy/Sentra, NV350 Caravan
and a long wheelbase version of the Infiniti M hybrid sedan. It has
aimed for product launches averaging every six weeks and expand its
Infiniti and light commercial vehicle businesses.
The company also anticipates operating profit of ¥700 billion
($8.54 billion) and net income of ¥400 billion ($4.88 billion) for
the year. The company has succeeded in cutting purchasing costs by
5% annually and aims to reduce total costs by 5% each year.
Nissan Motor, founded in 1933 and headquartered in Yokohama-shi,
Japan, together with its subsidiaries, engages in the manufacture
and sale of automotive products, industrial machinery and marine
equipment primarily in Japan, North America, and Europe. The
company offers passenger cars, trucks, buses, forklifts, light
commercial vehicles, power trains and parts, as well as sales
Due to better than expected recovery, promising results and
clear-cut outlook, the company currently retains a Zacks #2 Rank on
its stock, which translates to a short-term (1 to 3 months) rating
HONDA MOTOR (HMC): Free Stock Analysis Report
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