Nissan announced the financial results for the 12-month period ended March 31, 2019. In the fiscal year 2019, Nissan announced a series of adverse global events and incurred short-term costs as a result of its initiatives to improve quality of sales in the United States by implementing a warranty extension campaign for certain vehicles.
Based on the factors described above, Nissan generated operating income of 318.2 billion yen for the full year, with net sales of 11.5 trillion yen, an operating margin of 2.7%. Net income for the year fell 57.3% to 319.1 billion yen. In the financial year 2018, Nissan’s global sales fell 4.4% to 5.516 Million units.
Nissan’s sales in Japan increased by 2.1% to 596,000 units. This increase is a result of strong demand from the compact Note car and Serena minibusses, which are equipped with Nissan Intelligent Mobility, offering technologies such as e-POWER and ProPILOT. Noted was the best-selling vehicle in Japan in the fiscal year 2018, while Serena led the bus segment.
In China, where the company’s results are calculated annually, the strong performance of the new Kicks, Sylphy, and X-Trail would have led to a 2.9% increase in sales of Nissan units, which is 1,564 million euros, representing a market share of 5.9%. In the United States, sales of Nissan units declined 9.3% to 1.4 million units, representing a market share of 8.4%. Nissan sales in Europe, not including Russia, fell 17.8% to 536,000 units. However, the market share of 3% of sales in Russia increased by 2.6% to 107,400 units. In other markets, particularly in Latin America, Asia, Africa, and the Middle East, Nissan’s sales slumped by 0.4% to 815,000 units.
The fiscal year 2019 is the beginning of these initiatives and the company believes that significant performance improvements will not be immediate.