Asian Automakers See Sales Drops, Profits Squeezed

[steinravnik]

Nissan's profit drops 43 percent

TOKYO (AP) -- Nissan Motor Co. said Friday its net profit for the April-June quarter dropped 42.8 percent, hit by a rising yen and accounting provisions for the declining value of leased vehicles.

Japan's third-largest automaker said net profit fell to 52.8 billion yen ($505 million) for the quarter, while sales fell 4.1 percent from a year earlier to 2.3 trillion yen ($22.4 billion).

"In the face of the severe operating environment, Nissan remains resilient but cautious on the outlook for our industry," said Chief Executive Carlos Ghosn in a statement.

"We have identified the major risks and taken actions to address them, particularly in the U.S. market," he said.

Despite a slump in demand in the U.S. and Japanese markets and soaring material costs, Nissan kept its earnings forecasts for the current fiscal year through March 2009 with a net profit of 340 billion yen ($3.3 billion). Sales are likely to stay at 10.4 trillion yen ($99 billion).

Nissan's global sales for the April-June quarter rose 6.9 percent from a year earlier to 936,000 vehicles.

But its sales in the U.S. market fell 1.5 percent to 253,000 units, Nissan said. It said the American auto market shrank by 12 percent during the quarter.

Nissan's North American sales edged up 1.9 percent to 330,000 units.

Sales in Japan fell 2.2 percent to 148,000 units, while those in Europe were flat at 156,000 units.

Nissan was hit hard by a stronger yen in the quarter compared with the same period last year. A strong yen makes Japanese goods less competitive abroad and eats into exporters' profits when repatriated.

Nissan said foreign exchange losses amounted to 54.7 billion yen ($523 million) in the quarter. Accounting provisions booked for the declining value of leased vehicles in the United States and Canada totaled 42 billion yen ($402 million).

Nissan shares fell 1.4 percent to 828 yen Friday in Tokyo. Earnings were announced after trading ended.

Nissan also said it was in talks with "a number of governments around the world" for deals on electric vehicles.

"We are in discussion with several different countries, states, cities and individual companies around the world for future EV (electric vehicles) partnerships," Nissan's corporate vice president Simon Sproule told reporters.

The Nissan-Renault auto alliance, recently formed a partnership with the Portuguese government that includes plans to sell electric vehicles in Portugal in 2011. Renault SA of France owns 44 percent of Nissan.

http://biz.yahoo.com/ap/080801/japan_earns_nissan.html

[FenwickHockey65]

Wow, looks like everyone's doing pretty bad.

[bigdav160]

You think they would have learned their lesson with the leases. That's what bankrupted them the last time.

[New_Mexico_Sunset_on_Rt66]

Originally Posted by FenwickHockey65

Wow, looks like everyone's doing pretty bad.

Yea, except Nissan made money, and GM did not.

[fp115]

Originally Posted by New_Mexico_Sunset_on_Rt66

Yea, except Nissan made money, and GM did not.

At least GM isn't down 43%.

[eurohazard]

Originally Posted by fp115

At least GM isn't down 43%.

[wescoent]

Originally Posted by fp115

At least GM isn't down 43%.

GM is down 1,840%.

Year ago profit of 891M.

Current profit of -15500M.

(891-(-15500))/891 = 18.4 or 1,840%.

[megeebee]

Originally Posted by wescoent

GM is down 1,840%.

Year ago profit of 891M.

Current profit of -15500M.

(891-(-15500))/891 = 18.4 or 1,840%.

I think fp115 misread this. A 43% drop in profit is far superior to a 15 Billion dollar loss.

[fp115]

Originally Posted by wescoent

GM is down 1,840%.

Year ago profit of 891M.

Current profit of -15500M.

(891-(-15500))/891 = 18.4 or 1,840%.

Yeah not really what I meant there... then again I was comparing Q1 to Q2 and not to the prior year. Oh well.

[wescoent]

Originally Posted by fp115

Yeah not really what I meant there... then again I was comparing Q1 to Q2 and not to the prior year. Oh well.

It's confusing sometimes. Personally, I like all the data from years back in front of me in a nice neat little spreadsheet and associated graph, so you can do all KINDS of comparisons.

[fp115]

Originally Posted by wescoent

It's confusing sometimes. Personally, I like all the data from years back in front of me in a nice neat little spreadsheet and associated graph, so you can do all KINDS of comparisons.

Yeah just a bit confusing :P. I think we all need a break, but I don't think its safe to compare this year with any previous year, obviously all companies are suffering.

[AMERICA 123]

Well, look at that - and look how bad the analysts missed it - again.

YEP. No + 4.5% - or - 3.3% - or even a - 7.3%.

NOPE. It's a -18.7% - on a dsr adjusted basis or, if you prefer, a - 11.9% on a non adjusted.

http://pressroom.toyota.com/Releases...T2008080117514

Toyota Reports July Sales
08/01/2008

August 1, 2008 - Torrance, CA - Toyota Motor Sales (TMS), U.S.A., Inc., today reported July sales of 197,424 vehicles, a decrease of 18.7

percent from last July, on a daily selling rate basis.



The Toyota Division < TOYOTA / SCION > posted July sales of 175,242 units, a decrease of 17.9 percent from last July.

The Lexus Division reported July sales of 22,182 units, a decrease of 24.6 percent from the year-ago month.


************

Toyota Division < TOYOTA & SCION 'BRANDS'. >

Toyota Division passenger cars

Toyota Division passenger cars recorded July sales of 114,880 units, down 5.4 percent from the same period last year.

Passenger-car sales were led by Camry and Camry Hybrid, which posted combined sales of 42,131 units.

Camry Hybrid reported July sales of 2,645 units. Corolla recorded sales of 34,438 units for the month, up seven percent over July 2007.

With limited availability, the Prius mid-size gas-electric hybrid posted July sales of 14,785 units.

Yaris reported July sales of 8,620 units.

"Having the industry’s most fuel-efficient lineup is of value to us so long as we have the right product mix in our showrooms," said TMS President Jim Lentz.

"That’s why we're accelerating production of 4-cylinder models and quickly responding to market conditions with repurposed U.S. plants and plans for a U.S.-built Prius."

*******

Toyota Division light trucks.


Toyota Division light trucks recorded July sales of 60,362 units, down 34.3 percent from July 2007.

Light truck sales were led by the Tundra full-size pickup with July sales of 13,413 units.

The Tacoma mid-size pickup reported sales of 11,662 units for the month.

Highlander and Highlander Hybrid posted combined sales of 6,763 units in July.

The Highlander Hybrid gas-electric mid-size SUV reported July sales of 1,371 units, up five percent over last July.

Sequoia posted sales of 2,823 units for the month, up 50.4 percent over the same period last year.

*******

Scion brand products.


Scion posted July sales of 11,906 units.

The xB urban utility vehicle led the way with July sales of 5,081 units.

The tC sports coupe posted July sales of 4,787 units.

The xD reported sales of 2,038 units for the month.

**********

Lexus Division


Lexus passenger cars


Lexus passenger cars reported July sales of 13,219 units, a decrease of 27.2 percent from July 2007.

Passenger-car sales were led by the ES entry luxury sedan with July sales of 5,563 units.

The IS entry luxury sport sedan reported combined sales of 4,750 units.

The LS flagship luxury sedan reported combined sales of 1,466 units.

The GS luxury sport sedan reported combined July sales of 1,297 units.

*******

Lexus Division light trucks

Lexus Division light trucks recorded July sales of 8,963 units, down 20.3 percent from the year-ago month.

Lexus sales were led by the RX luxury utility vehicle, which posted combined July sales of 7,101 units.

The RX 400h hybrid luxury utility vehicle reported July sales of 1,439 units.

The LX 570 reported sales of 843 units, an increase of 277.7 percent versus the same period last year.

**********

TMS Hybrids

TMS calendar-year-to-date hybrid sales totaled 165,522 units.

TMS posted July sales of 20,363 hybrid vehicles.

Toyota Division recorded sales of 18,801 hybrids for the month.

Lexus Division reported July sales of 1,562 hybrids.

**********


There were 26 selling days this month, as compared to 24 selling days last July

[zete]

What's most interesting to me is the collapse of Lexus. The truck collapse is universal, but what's up with Lexus? It's cars and trucks!

This drop just shows that Toyota can try to spin this but they didn't see the price of fuel going up, don't have small cars to sell, and are stuck with vehicles no one wants -- like SUVs and trucks.

For dropped less than Toyota, which is rather surprising.

[AMERICA 123]

Originally Posted by zete

What's most interesting to me is the collapse of Lexus. The truck collapse is universal, but what's up with Lexus? It's cars and trucks!

This drop just shows that Toyota can try to spin this but they didn't see the price of fuel going up, don't have small cars to sell, and are stuck with vehicles no one wants -- like SUVs and trucks.

Ford dropped less than Toyota, which is rather surprising.

YEP.

Lexus has been a building story of 'signs' - that could've gone either way.

It's not just about the economy, the credit crunch, fuel prices, etc, etc, - its also about the product.

Toyota/Scion cars are weak as well - the Ford F150 Series just outsold the Corolla and Matrix combined.

[ronald mcretard]

until GM can pull itself out of the crapper, I'm going to stop worrying about Toyota.