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Nissan Motor Co Ltd ADR NSANY

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Nissan Starts Fiscal 2021 With Solid Turnaround Progress, Raises Guidance; FVE Raised to JPY 1,500

Richard Hilgert Senior Equity Analyst

Analyst Note

| Richard Hilgert |

No-moat rated Nissan reported fiscal first-quarter 2021 earnings per share before special items of JPY 9.82, JPY 16.01 better than the FactSet consensus loss per share of JPY 6.19 and JPY 52.63 better than the JPY 42.81 loss per share reported in the heavily COVID-19-impacted year-ago period. While automotive revenue jumped 91% to JPY 1.74 trillion, consolidated volume rose 59% to 695 thousand vehicles. Revenue growth outperformed volume as average automotive revenue per unit improved 20% on favorable mix and pricing with a slight currency tailwind. Automotive operating profit was JPY 6.0 billion versus an operating loss of JPY 199.1 billion a year ago. The swing back into black was on operating leverage from higher volume as well as cost reductions versus the prior year when the pandemic shutdown production. Automotive liquidity remained healthy at JPY 3.7 trillion with JPY 1.7 trillion cash and JPY 2.0 trillion available credit.

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Company Profile

Business Description

While Nissan annually sells about 4 million vehicles, total 2020 Renault-Nissan-Mitsubishi alliance sales volume of 7.8 million vehicles makes the alliance the third largest vehicle group in the world, behind Toyota at 9.5 million and Volkswagen at 9.3 million vehicles sold. Nissan's financial services subsidiary provides consumers with auto loans and leases. In addition, the subsidiary also finances Nissan's sales to its dealerships (known as floor-plan financing). Nissan is 43.4% owned by French automaker Renault, while Nissan in turn owns 15% of Renault. The Alliance also has controlling interests in AvtoVAZ (Lada) in Russia and Mitsubishi Motors in Japan.

1-1, Takashima 1-chome, Nishi-ku, Yokohama-shi
Kanagawa, 220-8686, Japan
Sector Consumer Cyclical
Industry Auto Manufacturers
Most Recent Earnings Jun 30, 2021
Fiscal Year End Mar 31, 2020
Stock Type
Employees 147,553