Nissan sees 1st loss under Ghosn in FY 2008, to stay in red this yr+

TOKYO, May 12 Kyodo -
Nissan Motor Co. said Tuesday it incurred a group net loss of 233.71 billion
yen in fiscal 2008, its first since Carlos Ghosn took the company's reins a
decade ago, but vowed to cut costs to reduce the red to 170 billion yen in the
current business year.

Echoing many of its competitors, Nissan said its earnings were badly eroded by
shrinking global demand for cars amid the recession and a stronger yen, which
crippled its overseas profits.
The loss for the year ended in March compares with a profit of 482.26 billion
yen booked in fiscal 2007, but it was smaller than the 265 billion yen loss
Nissan projected in February due to aggressive cost-cutting efforts and market
growth in China.
Ghosn, the current president, saw the company's fortunes reverse dramatically
as it sank into the red for the first time since fiscal 1999 when he joined
Nissan's management team from France's Renault SA and drove its net profit to
record-highs for six consecutive years until fiscal 2005.
Nissan, which is 44 percent owned by Renault, also saw a smaller-than-expected
operating loss of 137.92 billion yen, its first since fiscal 1994, on sales of
8.44 trillion yen, down 22.1 percent from a year earlier.
''Ending fiscal year 2008 with better-than-expected results is good, but still,
the absolute numbers show that we have significant challenges before us,''
Ghosn said at a press conference in Tokyo. ''The crisis is ongoing, and market
conditions are still volatile.''
Nissan also projected a group operating loss of 100 billion yen for the 2009
business year ending next March on sales of 6.95 trillion yen, joining a
growing list of Japanese automakers forecasting red figures ahead.
But it has fared better than industry leader Toyota Motor Corp., which posted a
bigger group operating loss of 461.01 billion yen for the just-ended business
year, while projecting a stunning 850 billion yen loss for fiscal 2009.
Five of Japan's major automakers including Nissan, Isuzu Motors Ltd. and Mazda
Motor Corp. posted annual losses in fiscal 2008, while others like Honda Motor
Co. and Suzuki Motor Corp. managed to remain in the black due to brisk sales of
fuel-efficient cars and compact vehicles.
''Today, it is unclear who is, from this crisis, going to emerge as the
winner,'' Ghosn said.
The automaker cited risks linked to its foreign exchange rate assumption, which
is being set at 95 yen to the U.S. dollar and 125 yen to the euro, compared
with 100.7 yen and 144.1 yen, respectively, in fiscal 2008.
In fiscal 2008, Nissan sold 3,411,000 vehicles worldwide, down 9.5 percent from
a year earlier as recession-hurt consumers shunned expensive purchases.
Sales in Japan fell 15.1 percent to 612,000 vehicles, while those in the United
States dropped 19.1 percent to 856,000 vehicles.
But Nissan said sales in China jumped 19.1 percent from a year earlier to
545,000 units and pinned its future growth on a recovery in demand in emerging
markets including those in other parts of Asia, Brazil and the Middle East.
''I don't think we are going to have to wait a long time before seeing the
emerging markets becoming the main pillar of profitability,'' Ghosn said.
He also said Nissan is aiming ''to come back to profit hopefully before the end
of 2010,'' referring to fiscal 2010, by implementing its recovery plans
including an over 200 billion yen cut in global fixed and labor costs, reduced
hiring and working hours.
Nissan has said it will cut 20,000 jobs globally and cap capital spending by
nearly 9 percent in fiscal 2009.
The focus, he said, will be on accumulating cash ''to make sure that if the
financial crisis is not finished and if there is a chapter two or three to this
crisis, the company is prepared.''
Nissan will also produce zero-emission electric vehicles powered by lithium ion
batteries at its plant in Yokosuka, Kanagawa Prefecture, from fall 2010 as it
eyes closing a gap with rivals such as Toyota and Honda, which hold the lead in
hybrid cars.
The company plans to launch eight new models globally including the remodeled
Fuga luxury sedan and a new minivehicle in Japan.
For the current business year, the automaker said it plans to sell 3,080,000
vehicles worldwide, down 9.7 percent from fiscal 2008.
It produced 3,084,000 vehicles globally in fiscal 2008, down 15.7 percent from
a year earlier. For the current business year, it plans to produce 2,950,000
units, down 4.3 percent from fiscal 2008.
Nissan said its fiscal 2008 dividend comes to 11 yen per share, which was paid
after the end of its second quarter, compared with 40 yen it paid in fiscal
2007. For the current business year, it said it expects to pay no dividend and
will revise the forecast in line with market conditions.
==Kyodo