Carlos Ghosn had reason to be beaming and relaxed last night in Tokyo. Last night, he said “Well, we are going to show you the numbers tomorrow, and they will be significantly higher than in 2010.” Today, Ghosn did not disappoint.
Nissan announced its forecast for the Fiscal Year 2011, which goes from April 1 2011 through March 31 2012. Nissan clearly expects a year that beats all records in the history of the company. Based on foreign exchange rate assumptions of 80 yen to the dollar and 115.0 yen to the euro, Nissan filed the following forecasts with the Tokyo Stock Exchange:
- Net revenues of 9.4 trillion yen (US $117.5 billion, euro 81.74 billion). Last year ended with 8.8 trillion yen.
- Operating profit of 460 billion yen (US $5.75 billion, euro 4 billion) . Last year ended with 537.5 billion yen.
- Ordinary profit of 441 billion yen (US $5.51 billion, euro 3.83 billion). Last year ended with 537.8 billion yen.
- Net income of 270 billion yen (US $3.38 billion, euro 2.35 billion). Last year ended with 319.2 billion yen.
Nissan expects global sales for fiscal year 2011 to rise to 4.6 million units, an increase of 9.9 percent. Nissan anticipates a return to full unrestricted production in October.
All of these are forecasts, but they are usually made with great care. Deviate too much from your forecasts and your stock will get hammered. Of the big Japanese automakers, this is by far the best forecast. Considering that large parts of Japan and its industry had been devastated, it is the forecast of a miracle.
How will that miracle be performed? On Monday, Nissan will present its short and long-term strategy.
If their forecasts are correct then it is commendable but the above article states “Nissan clearly expects a year that beats all records in the history of the company.”
Yet I see operating profits, ordinary profits and net income (ie 3 out of 4 variables listed) being lower than the year before – best ever? Don`t think so, better than could have been expected? Yes.
Mike’s correct – profits are down from prior year but taking into account the natural diasater in Japan – respectable.
Did you mean to title “Record Sales Revenues” instead of record profits? I didn’t check but was 9.4 trillion yen record revenue for Nissan/Renault?
How did Nissan pull it off but not Toyota/Honda? Both subject to business interruptions from the same natural diasater.
It must be Ghosn week!
How about buying Saab and saving it? That would be an even greater miracle. One that I think Nissan could actually pull off.
Certainly better than Government Motors did when they had them, and better than Spyker did.
GMCo – enough with the gratuitous GM bashing when the topic being discussed is far removed from them. Plenty of companies have had issues running acquisitions including BMW with Rover, MB with Chrysler, Ford with Volvo and Jaguar (although doing well know 10+ years after Ford bought them), the list continues. GM is not unique in this.
Predicting a miracle and actually puulling it off are very different things I cant see Nissana awful CVT power train heloing these are universally hated and Renaults oddball styling aint gunna help Gawd this company has reinvented itself countless times each one a little less successful than the last now with Nissan anchors fitted theyve got no chance