By on May 11, 2012

Nissan pulled off an even bigger miracle than Toyota and ended a (this time truly) catastrophic year with a big profit. Today in Yokohama, Nissan CEO Carlos Ghosn announced that Nissan delivered a pre-tax profit of 535.1 billion yen (US $6.76 billion) for the fiscal year that ended on March 31, “despite natural disasters and currency exchange headwinds.”

Japan’s second largest car company produced the largest profit, exceeding that of Toyota, which had announced a 432.9 billion yen ($5.4 billion) profit before taxes on Wednesday. At the end of last year it was already evident that Nissan had survived that truly catastrophic year best. Today, that fact was confirmed by a beauty of a balance sheet.

When asked what risks are in front of Nissan, Ghosn answered: “The biggest risk is the strength of the yen.” Ghosn is the designated hitter of the Japanese auto industry when it comes to the Yen. He can say what Japanese colleagues would love, but don’t dare to say.

At each quarterly results conference, a reporter of the Nikkei needles Toyota with the question when the company would finally produce a profit at its factories in Japan, instead of offsetting homemade losses with foreign gains. Toyota usually gives a polite non-answer.

Ghosn doesn’t even wait for that question. Unasked and blunt, he says:

“We have healthy profits this year, but all the profits come from international operations. When you take a look to the non-consolidated results in Japan, they are negative. The reason they are negative is because of the strength of the yen. We are protecting ourselves by using as much international capacity as possible and by holding the exports from Japan to the minimum level.”

Just about every car that is exported from Japan is exported at a loss. Instead of paying taxes on income at home, Japanese carmakers pay the price for the abnormally strong yen, Nevertheless, Nissan expects for the new fiscal a pre-tax profit for 680 billion yen ($8.5 billion) on sales of 5.5 million units for Nissan only.

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9 Comments on “Nissan Largest Japanese Carmaker. In Profits...”


  • avatar
    replica

    I had to get up and walk away from my desk to not disturb my coworkers with laughter. Ghosn’s unintentionally hilarious appearance gets me every time.

    • 0 avatar
      bd2

      At times (with certain facial expressions) Ghosn can look a bit like Rowan Atkinson (aka Mr. Bean).

      This just further shows that Ghosn is obsessed with margins – even if that means diluting Infiniti to a repackager of parts (and even that’s being outsourced).

    • 0 avatar
      replica

      The second to last picture, he looks exactly like a disappointed Grench. No presents for you Ghosn. Look on in envy as we dance around the town Christmas tree.

  • avatar
    sportyaccordy

    Lol dude is such a relentless character

  • avatar
    schmitt trigger

    He does have a Mr. Bean-esque facial expression.

    However, have to give LOTS of credit to the guy.

    Managing two such disparate cultures (French and Japanese) by an outsider, and managing them well, is no small feat.

  • avatar
    Banger

    “Just about every car that is exported from Japan is exported at a loss.”

    Which is why you don’t see Nissan advertising the Cube at all. Such a shame that this wonderful little car is both unadvertised and uncompetitively priced vs. it’s biggest rival, the Kia Soul, precisely for the reason Ghosn outlines: the stupid-high Yen.

    • 0 avatar
      stuntmonkey

      >Which is why you don’t see Nissan advertising the Cube at all

      Same with Fits here in Vancouver. Lately I’m seeing more lower spec 2012 Civic’s on the streets, but the Honda dealership near me is almost bereft of Fits.

  • avatar
    Beerboy12

    it would be interesting to know how much the insurance claims helped.

  • avatar
    wallstreet

    Bertel is pretty good at capturing Carlos’s expression. I bet your arm must be sored from holding telephoto len.


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