Nissan halves yearly profit forecast

Nissan Motor Co., Ltd, today announced financial results for the first half of fiscal year 2008, ending March 31, 2009, as well as second-quarter performance. In the six months through September, net income after tax totalled 126.3 billion yen (US $1.19 billion, euro 0.78 billion), down 40.5% compared with the same period last year due mainly to the negative impact of foreign exchange rates, the severe decline in the US market, provisions for risk on leased vehicles in North America and product mix deterioration.Net revenues amounted to 4.8693 trillion yen (US $45.89 billion, euro 29.91 billion) in the April-to-September period, down 3.9% compared with a year ago. Operating profit totalled 191.6 billion yen (US $1.81 billion, euro 1.18 billion), down 47.8%, while the operating profit margin came to 3.9%. Ordinary profit amounted to 202.7 billion yen (US $1.91 billion, euro 1.25 billion), down 43.7%.In the first half, Nissan sold 1,902,000 vehicles worldwide, up 4.7% compared with last year. In North America, sales were 666,000 units, down 0.9%. Sales in the U.S. were 516,000 units, down 3.4%. In a market that was down 15.1%, Nissan saw its market share rise by 0.9% to 7.2%. Sales in Japan were down 4.3% at 318,000 units. In Europe, sales were up 0.7% at 306,000 units. Across the General Overseas Markets, sales were up by 20.6% to 612,000 units, driven by growth in China and the Middle East."The global financial and economic crisis has had a profound effect on every area of our industry, with the grip on credit and declining consumer confidence being the most damaging factors," said Nissan President and CEO Carlos Ghosn. "Since we see no relief in the second half, we are taking all necessary and responsible measures to protect the company and preserve our ability to rebound when conditions improve."In the July-to-September second quarter, Nissan's net income totalled 73.5 billion yen (US $0.69 billion, euro 0.45 billion), down 38.8%. Net revenues amounted to 2.5221 trillion yen (US $23.77 billion, euro 15.49 billion), down 3.7% compared with a year ago. Operating profit totalled 111.7 billion yen (US $1.05 billion, euro 0.69 billion), down 48.9%, while the operating profit margin came to 4.4%. Ordinary profit amounted to 120.2 billion yen (US $1.13 billion, euro 0.74 billion), down 42.5%.Nissan sold a total of 966,000 vehicles worldwide in the second quarter, up 2.7% compared with the prior year.In fiscal year 2008, Nissan will launch a total of nine all-new products globally. The second quarter saw one new product, Qashqai+2, launched in Europe. During the second half of the fiscal year, five new products will be introduced globally: NP200 in South Africa; KIX mini-SUV, Cube and Fairlady Z in Japan; and Infiniti G37 convertible in the U.S.The effects of the global financial and economic crisis have created conditions of extreme volatility and uncertainty that are expected to continue for the remainder of FY08. Despite the lack of reliable economic and industry forecasts and taking into consideration most factors affecting our activities, the company has revised its operating profit and its net income forecast for the full fiscal year 2008 to 270 billion yen (US $2.54 billion, euro 1.66 billion) and 160 billion yen (US $1.51 billion, euro 0.98 billion), respectively.As a consequence of the revised operating profit forecast, the company will pay an interim dividend of 11 yen per share. Details of the second payment, based on the approval of the shareholders, will be provided at the Annual General Shareholders Meeting in June 2009. 

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