Nissan net loss at $2.32 billion for 2008

Nissan Motor Co., Ltd., today announced financial results for the fiscal year 2008, ending March 31, 2009.

Nissan filed the following results with the Tokyo Stock Exchange:

* Net revenues of US $83.78 billion, euro 58.55 billion
* Operating loss of US $1.37 billion, euro 960 million
* Ordinary loss of US $1.71 billion, euro 1.2 billion
* Net loss of US $2.32 billion, euro 1.62 billion

The full-year results were better than the forecast disclosed at the third-quarter financial results filed on February 9, 2009.

“The global economic recession and financial crisis continue, but we are beginning to see some signs of improved access to credit, the impact of government stimulus packages and a gradual return in consumer confidence,” said Nissan President and CEO Carlos Ghosn. “We remain cautious about the economic environment and fully focused on our company’s recovery efforts.”

Nissan sold a total of 3,411,000 vehicles worldwide in fiscal year 2008, down 9.5%. In North America, sales were 1,133,000 units, down 16.2%; United States sales were 856,000 units, down 19.1%. In Japan, sales were 612,000 units, down 15.1%. In Europe, sales came to 530,000 units, down 16.7%. Sales in General Overseas Markets (GOM) were up 7.1% at 1,136,000 units, where China remains the only market to demonstrate growth.

In fiscal year 2008, Nissan released eight all-new models globally: Teana, Infiniti FX, Maxima, Qashqai+2, NP200, KIX mini SUV, Cube and 370Z.

“2009 will be another challenging year. Our priorities will be preserving cash, improving our profitability and pursuing deeper synergies within the Renault-Nissan Alliance,” said Ghosn. “We are balancing short- and long-term objectives to manage through the crisis and to prepare for the future.”

The global sales forecast for fiscal 2009 is 3.08 million units. Nissan will launch eight all-new products during fiscal 2009: Pixo in Europe; Patrol in the Middle East; NV200, Fuga and a new mini in Japan; new global entry car in Asia; and G37 convertible and 370Z convertible in the United States.

The company aims to return to a positive free cash flow position in the year ahead. Based on the company’s outlook and assuming foreign exchange rates of 95 yen/dollar and 125 yen/euro, Nissan filed the following forecast for the fiscal year ending March 31, 2010, with the Tokyo Stock Exchange:

* Net revenues of US $73.16 billion, euro 55.6 billion
* Operating loss of US $1.05 billion, euro 800 million
* Net loss of US $1.79 billion, euro 1.36 billion
* R&D expenses of US $4.21 billion, euro 3.2 billion
* Capital expenditures of US $3.68 billion, euro 2.8 billion

Nissan Middle East has already admitted to slumping sales in the GCC, especially in the UAE, and so far has refused to reduce prices.