Nissan Motor Co Limited announces its financial results for the first half year with revenue and net income both down.

Nissan Motor Co., Ltd. today announced financial results for the six-month period to September 30, 2016.

"In the first half, Nissan generated a solid operating profit of 339.7 billion yen, which represents a 6.4 percent margin on net revenues of 5.32 trillion yen," said Carlos Ghosn, Chairman and Chief Executive Officer. "These solid results were achieved despite recent currency headwinds and continued challenges in Japan and emerging-markets."

Fiscal Year 2016 First Half Financial Highlights

The following table summarizes Nissan's financial results for the six-month period to September 30, 2016, calculated under the equity accounting method for the Group's China joint venture.

Fiscal Year 2016 First Half Financial Highlights to September 30, 2016

(TSE report basis – China JV equity basis)¹

Yen in billions	FY H1 15	FY H1 16	% change year on year	FY H1 16 at constant currency	% change at constant currency
Revenues	5,933.3	5,321.0	-10.3	6,123.4	+3.2
Operating profit	395.0	339.7	-14.0	519.5	+31.5
Operating margin %	6.7	6.4	-0.3	8.5	+1.8
Ordinary profit	427.7	396.8	-7.2	N/A	N/A
Net income2	325.6	282.4	-13.3	N/A	N/A
Based on average foreign exchange rates of JPY 105.2/USD and JPY 118.0/EUR

On a constant currency basis, operating profit rose 31.5 percent to 519.5 billion yen, equivalent to an 8.5 percent profit margin. This reflects demand for core products, particularly in North America and benefits of continued cost-discipline, on-going product introductions and Alliance strategy.

On a management pro forma basis, which includes the business results of Nissan's operations in China, FY16 first half net revenue decreased 9.6 percent to 5.84 trillion yen. Operating profit fell 10.7 percent versus the same period last year, to 412.0 billion yen. The operating profit margin fell from 7.2 percent to 7.1 percent.

On a constant currency exchange rate basis, pro-forma net revenues increased 4.2 percent to 6.73 trillion yen and operating profit improved 30.6 percent to 603.0 billion yen, equivalent to a profit margin of 9.0 percent.

Sales performance

In the first half of the fiscal year, Nissan's total unit sales were 2.61 million units.

In the U.S., Nissan's sales rose by 3.7 percent to 783,000 units, equivalent to a market share of 8.7 percent, amid strong demand for the Altima, the Rogue and the Maxima.

Nissan unit sales in China, which reports figures on a calendar year basis, rose 3.8 percent to 610,000 units, equivalent to market share of 5.0 percent. In Europe, excluding Russia, Nissan's sales rose by 4.4 percent to 319,000, which resulted in a market share of 3.6 percent. The Qashqai SUV and X-Trail helped drive demand in the region.

Nissan's performance in these key markets helped compensate for a decline in the Japanese market where Nissan was impacted by the suspension of Dayz/Dayz Roox minicar sales. Total unit sales in the quarter for Japan were 211,000 units, representing a market share of 9.2 percent. In other markets including Asia and Oceania, Latin America, the Middle East and Africa, Nissan's sales decreased 4.9 percent to 382,000 units.

Outlook

"Nissan is maintaining its global sales and earnings forecast for fiscal 2016," said Mr. Ghosn. "Although Nissan faces market uncertainty and currency headwinds, we expect to continue to deliver solid earnings and positive free cash flow generation in the current fiscal year. We can also look forward in fiscal year 2017 to valuable synergies from our alliance with Mitsubishi Motors, in which we recently acquired a 34 percent stake."

"As announced at the end of the last fiscal year, we have decided to increase the full year dividend by 14.3 percent to 48 yen per share, and the Board today approved an interim dividend payment of 24 yen per share."

The Company expects to sell 5.6 million units this fiscal year, up 3.3 percent. Based on this sales outlook, Nissan has maintained forecasts first issued to the Tokyo Stock Exchange in May 2016. Calculated under the equity accounting method for the fiscal year ending March 31, 2017, the forecasts showed:

Nissan FY16 Outlook – TSE report basis – China JV equity basis1
Net revenue	¥11.8 trillion
Operating profit	¥710.0 billion
Ordinary profit	¥800.0 billion
Net Income2	¥525.0 billion

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

2 Net income attributable to owners of the parent

USA - Ford announces net imcome of $1.0Bn, down $1.2Bn from one year ago, profit and EPS are also down.

• Net income $1.0B, down $1.2B from a year ago; Total company adjusted pre-tax profit $1.4B, down $1.7B
• Earnings per share $0.24, down $0.31 from a year ago; adjusted earnings per share $0.26, down $0.26
• 2016 Guidance: Ford continues to expect total company adjusted pre-tax profit to be about $10.2 billion
• Global market share of 7.5 percent, down one-tenth of a percentage point from a year ago
• Ford Credit delivered best quarterly profit since 2011
• Automotive segment operating cash flow $(2.0)B, down $4.8B from a year ago
• Automotive segment pre-tax profit $1.1B, down $1.7B
• Automotive segment operating margin 3.3 percent
• Strong cash and liquidity including Automotive cash of $24.3B; cash net of debt $11.2B and total liquidity $35.2B
• Launched first all-new F-Series Super Duty in 18 years, as well as the flagship Lincoln Continental; on track for 12 global product launches in 2016
• Europe delivered $138M pre-tax profit, sixth profitable quarter in a row and best 3Q since 2007
• Ford remains Europe’s best-selling commercial vehicle brand
• Asia Pacific delivered a record 3Q pre-tax profit of $131M, up $109M from a year ago
• Ford surpassed 1 million sales in Asia Pacific following record August sales
• Ford Smart Mobility LLC invested in Zoomcar, the car-sharing leader in India
• Distributed $600M to shareholders in a regular quarterly dividend
• Global Lincoln sales up 17 percent from a year ago
• Year-to-date, net income $5.4B, down 2 percent, and adjusted pre-tax profit $8.2B, up $53M

”This quarter, we delivered key elements of our growth plan by fortifying our core business with the launch of the all-new Super Duty pickup, transforming Lincoln with the new Continental and investing in emerging opportunities with the acquisition of the Chariot crowd-sourced shuttle service. 

Importantly, we remain on track to deliver one of our best profit years ever.” Mark Fields, President & CEO.

USA - General Motors announces results for the second quarter, and all is looking really good.

• Strong EPS diluted of $1.81; record EPS diluted-adjusted of $1.86
• Record net revenue of $42.4 billion, up 11 percent
• Record EBIT-adjusted of $3.9 billion, up 37 percent
• GM North America sets records for EBIT-adjusted of $3.6 billion, 12.1 percent margin

General Motors Co. (NYSE: GM) today announced strong second-quarter net income to common stockholders of $2.9 billion, up 157 percent compared to $1.1 billion in the second quarter of 2015. Earnings per share (EPS) diluted was a strong $1.81, compared to $0.67 in the second quarter a year ago.

EPS diluted-adjusted was a record at $1.86, up 44 percent compared to $1.29 in the second quarter of 2015.

The company reported records for earnings before interest and tax (EBIT) adjusted of $3.9 billion and EBIT-adjusted margin of 9.3 percent. These compare to EBIT-adjusted of $2.9 billion and EBIT-adjusted margin of 7.5 percent in the second quarter of 2015, which included the impact of $0.3 billion restructuring costs.

“This was an outstanding quarter for GM,” said Chairman and CEO Mary Barra. “Our results were generated by strong retail sales in the U.S., record sales in China and a continued emphasis on improving the performance of our operations worldwide. We’ll continue to focus on driving profitable growth and leveraging our technical expertise to lead in the future of personal mobility.”

Net revenue of $42.4 billion was a record, compared to $38.2 billion in the second quarter of 2015. Holding exchange rates constant, net revenue was $5.0 billion higher than the second quarter of 2015.

GM Results Overview (dollars in billions except for per share amounts and where noted)

	Q2 2016	Q2 2015
Global deliveries (millions of units)	2.4	2.4
Net revenue	$42.4	$38.2
Net income attributable to common stockholders	$2.9	$1.1
EPS diluted	$1.81	$0.67
Impact of special items on EPS diluted	$(0.05)	$(0.62)
EPS diluted–adjusted	$1.86	$1.29
EBIT-adjusted	$3.9	$2.9
% EBIT-adjusted margin	9.3	7.5
Automotive net cash flow from operating activities	$5.0	$5.1
Adjusted automotive free cash flow	$3.2	$3.3
% return on invested capital (ROIC)	30.5	23.4

Segment EBIT-Adjusted Results

• GM North America reported record EBIT-adjusted of $3.6 billion compared with $2.8 billion in the second quarter of 2015. For the quarter, EBIT-adjusted margin was a record 12.1 percent, compared to 10.5 percent a year ago.
• GM Europe reported EBIT-adjusted of $0.1 billion compared with breakeven EBIT-adjusted results in the second quarter of 2015. This result is the first profitable quarter since the second quarter of 2011.  
• GM International Operations reported EBIT-adjusted of $0.2 billion compared with $0.3 billion in the second quarter of 2015. Results included China equity income of $0.5 billion in both periods.
• GM South America reported EBIT-adjusted of $(0.1) billion, about equal with the second quarter of 2015.  
• GM Financial reported earnings before tax of $0.3 billion, compared with
  $0.2 billion in the second quarter of 2015.   

Cash Flow and Liquidity

For the quarter, automotive cash flow from operating activities was $5.0 billion. Adjusted automotive free cash flow was $3.2 billion. GM ended the quarter with total automotive liquidity of $34.1 billion, and automotive cash and marketable securities of $20.1 billion.

“When you deliver cars, trucks and crossovers customers really value, and generate efficiencies across the enterprise, great results follow,” said Chuck Stevens, GM executive vice president and chief financial officer. “With our aggressive vehicle launch cadence and robust global industry sales, we are confident that we can continue to achieve strong financial performance.”   

GM expects a higher proportion of volume from new or refreshed vehicles each year through 2020 compared to the prior five years, increasing to 40 percent of its total global volume, up from 26 percent in 2015.

2016 Outlook

Based on the company’s strong financial performance through the first half of 2016 and its current outlook for the second half of the year, GM now expects 2016 full year EPS diluted-adjusted to be $5.50 – $6.00, up from the previously announced $5.25 – $5.75 range.

Global Vehicle Sales

GM sold 2.4 million vehicles globally in the second quarter of 2016 to customers, about equal to the second quarter of 2015. Through June 30, the company sold 4.76 million vehicles globally.

In the U.S., GM sold 1.44 million vehicles in the first six months of the year, which included a retail sales increase of more than 1 percent. U.S. retail market share rose 0.4 percentage points through June, the largest retail share gain of any full-line automaker. In China, GM and its joint ventures delivered a record 1.81 million vehicles during the first half of the year, an increase of 5.3 percent. In Europe, Opel / Vauxhall outperformed the industry with a 7-percent sales increase to 621,000 vehicles in the first half of the year.