Nissan reports six months results, significantly higher than the same period in 2013,

Results for six months to September 30, 2014 (TSE report basis – China JV equity basis)*	FY2014 First Half (Apr.-Sep. 2014)	Y-O-Y
Net revenue	¥5.14 trillion ($49.95 billion/€37.04 billion)	+8.2%
Operating profit	¥261.9 billion ($2.54 billion/€1.89 billion)	+18.0%
Ordinary profit	¥328.2 billion ($3.19 billion/€2.36 billion)	+41.9%
Net income	¥237.0 billion ($2.30 billion/€1.71 billion)	+24.9%

Based on average foreign exchange rates of JPY 103.0/USD and JPY 138.9/EUR

Nissan Motor Co., Ltd. today announced financial results for the six months to September 30, 2014.

In spite of volatile economic conditions in several markets, Nissan benefited from strong demand for new products, rising sales in the key North American market, and the favorable impact of the yen correction against the U.S. dollar.

Operating profit rose to $2.54 billion (¥261.9 billion/€1.89 billion) for the first half of the 2014 fiscal year, representing a 5.1% margin on net revenues that climbed 8.2% to $49.95 billion (¥5.14 trillion/€37.04 billion) for the period.

"Nissan successfully overcame challenging market conditions in the first-half of the fiscal year, delivering solid revenues and profitability amid encouraging demand for our latest models," said Carlos Ghosn, president and chief executive officer.

"Nissan is on track to deliver its full-year net income guidance, reflecting the benefits of our continued product offensive, financial discipline and synergies from our Alliance strategy."

On a management pro forma basis, which includes the proportionate consolidation of the results of Nissan's joint venture operations in China, FY14 first half net revenue increased to 5.64 trillion yen, up 8.2% year-on-year. Operating profit was up 25.7% versus the same period last year, to 332.6 billion yen, resulting in a 5.9% operating profit margin.

The improvement reflected strong unit sales growth in North America and signs of stabilization in western Europe. This offset slower demand in Japan and continued volatility in Russia and other emerging economies. Rising demand for award-winning products including the Qashqai, Rogue and X-Trail, each derived from the Common Module Family developed within the Renault-Nissan Alliance, contributed to the positive results.

During the first half of FY14 Nissan sold 2.58 million vehicles globally, a 5.8% rise year-on-year.

In the first half Nissan also expanded its zero-emissions leadership. Total sales since launch of the all-electric LEAF have passed 142,000 units and it continues to be the best-selling EV in history. Nissan expanded its zero-emission presence in the light commercial vehicle segment with the June launch of e-NV200, which offers versatility and class-leading running costs.

FY2014 Outlook

Nissan has revised its full-year sales outlook downward by 200,000 units to 5.45 million units for this fiscal year. Although units sales are expected to rise further in North America, this is likely to be more than offset by reduced sales in China and emerging markets.

Despite the anticipated decrease in unit volumes, the company is maintaining its prior forecasts for operating profit and net income, reflecting increased sales in North America, further cost savings and net foreign currency benefits. Net revenue guidance has been revised upward slightly from the forecast first issued to the Tokyo Stock Exchange in May 2014. 

Foreign exchange rate assumptions for the full year are projected to be 104 yen to the dollar and 138 yen to the euro. Calculated under the equity accounting method, the company issued the following revised outlook for the fiscal year ending March 31, 2015:

Nissan FY14 Outlook – TSE report basis – China JV equity basis
Net revenue	¥10.8 trillion ($103.85 billion/€78.26 billion)
Operating profit	¥535.0 billion ($5.14 billion/€3.88 billion)
Ordinary profit	¥620.0 billion ($5.96 billion/€4.49 billion)
Net Income	¥405.0 billion ($3.89 billion/€2.93 billion)

Calculated on exchange rate of JPY 104/1 USD and JPY 138/1 EUR

*Since the beginning of fiscal year 2013, Nissan has reported figures calculated under the equity method accounting for its joint venture with Dongfeng in China. Although net income reporting remains unchanged under this accounting method, the equity-accounting income statements no longer include Dongfeng-Nissan's results in revenues and operating profit.