Nissan’s Global Sales Surge, Lift Profit

Nissan Motor Co. on Monday reported a 1.7% increase in profit for its fiscal year on strong sales around the world.

Tokyo-based Nissan, on a comeback trail under a five-year alliance with Renault, posted a group net profit of $4.6 billion for the 12 months ended March 31. Sales climbed 8.8% to $68 billion.

Nissan President and Chief Executive Carlos Ghosn said sales improved in North America, Japan, Europe and China and offset losses from an unfavorable exchange rate between the yen and the U.S. dollar.

Global vehicle sales for Japan’s No. 2 automaker increased 10% to 3.06 million. It was the first time Nissan vehicle sales had surpassed the 3 million mark in 13 years.

Vehicle sales surged nearly 18% in the United States, where a new plant in Canton, Miss., began to launch several models. Ghosn unveiled a three-year plan through March 2008 that includes targets to reach annual global sales of 4.2 million vehicles and maintain a 20% return on invested capital.

As part of that plan, Nissan will begin to sell its Infiniti luxury models around the world over the next three years, starting with South Korea next year, and eventually in Japan, China, Russia and other countries, Ghosn said. Infiniti is now mainly sold in North America.

Nissan’s global market share, which stood at 4.7% in 2001, reached 5.3% in 2003 and is projected to reach 7% in 2007, Ghosn said.

For the fiscal year ending March 31, 2005, Nissan is forecasting net profit of $4.7 billion on $75 billion in sales. Nissan plans to sell more than 1 million vehicles in the United States in fiscal 2004, up 16.8% from fiscal 2003.

Ghosn, who is set to become Renault chief executive next year as well, said he remained committed as chief executive of Nissan. Renault owns 44.3% of Nissan.

“I will remain fully accountable for delivering the commitments made today,” he said.