"2009 continues to be a tough year, but we are beginning to see positive results from the measures taken under our Recovery Plan."
Nissan Motor Company Ltd announced a net loss after tax of ¥16.5 billion ($170 million, euro €120 million) in the first quarter of fiscal year 2009, which ends March 31, 2010, compared to net income of ¥52.8 billion yen ($540 million) from the same period a year ago.
Net revenue fell 35.5% to ¥1.5 trillion ($15.55 billion). Nissan’s operating profit totaled ¥11.6 billion ($120 million), down 85.5%, while the ordinary loss amounted to ¥26.1 billion($270 million).
Globally, Nissan sold a total of 723,000 vehicles in the Q1 April-to-June period, down 22.8% compared to same period in 2008. In North America, sales were 225,000 units, down 31.6%. Sales in the United States were 173,000 units, down 31.5% in a market that continues to decline. In Japan, sales were 116,000 units, down by 21.6%. European sales were 118,000 units, down 24.6%. China grew with sales up by 9.3% at 145,000 units. Sales in other regions were down 29.8% to 119,000 units.
The first quarter saw the launch of three products — Pixo in Europe, NV200 in Japan and G37 convertible in the United States. In fiscal 2009, Nissan says it will launch a total of eight all-new products globally.
“2009 continues to be a tough year, but we are beginning to see positive results from the measures taken under our Recovery Plan,” said Nissan President and CEO Carlos Ghosn. “We are on track towards positive free cash flow for FY2009 and will remain cautious in our outlook for the rest of the year.”
Nissan’s forecast remains unchanged for the full fiscal year with an operating loss of ¥100 billion ($1.05 billion, based on ¥95:$) and net loss of ¥170 billion yen ($1.79 billion). After having missed the market for hybrid electric vehicles now dominated by Toyota and to a lesser degree Honda, Nissan’s two larger Japanese competitors, Ghosn will unveil an all electric car in Tokyo next month. The company and its alliance partner, loss-making Renault, are betting heavily on government mandates and subsidies to create mass market demand for what heretofore are automotive curiosities with limited sales.