LexFather

http://www.forbes.com/facesinthenews...02part001.html

Nissan Chief Ghosn Targets Further Growth With Three-Year Plan
Chris Noon, 04.25.05, 9:36 AM ET

Carlos Ghosn Add To Tracker


NEW YORK - Re-animation: Thanks to the distinctive Japanese cartoons known as manga, both an art and a form of popular literature, Carlos Ghosn and the Nissan Motor (nasdaq: NSANY - news - people ) revival story are now part of Japanese folklore: The chief executive and the turnaround of the automaker's fortunes are depicted in comics on tables in manga kissaten--manga cafes--all over Japan. And the comic strips are set to continue--Nissan has reported record net income of $4.8 billion for the fiscal year ending March 31, a 1.7% rise from a year earlier. "Nissan lived up to all the challenges," Ghosn said, but the Nissan honcho is facing some roadblocks in the coming year: a possible U.S. interest rate rise, high steel and oil prices, and unsympathetic foreign-exchange rates. Nissan said it sold a record 3.39 million vehicles around the world, up 10.8% from 3.06 million the previous year. Vehicle sales in the United States increased 18% to 1.01 million. Ghosn, who is to acquire a new kingdom later this week, as he takes on the additional post of Renault CEO, today gave details of a three-year plan called "Nissan Value-up," which will target growth while maintaining low costs and profitability. Ghosn will note Nissan rival Toyota Motor (nyse: TM - news - people ) is setting up Lexus luxury-model showrooms in Japan this summer, although he allowed himself a few words of self-congratulation: "Our revival is well known and is, in fact, complete," he was quoted as saying in the Associated Press.


NISSAN Value-Up
The NISSAN Value-Up business plan has three commitments relating to profitability, growth and return on investment. The commitments are:
· to maintain the top level of operating profit margin among global automakers for each of the three years of the plan;
· to achieve global sales of 4.2 million units, measured in fiscal year 2008; and
· to achieve a 20% return on invested capital on average over the course of the plan, excluding cash on hand.

“The story of Nissan’s revival is now complete,” said Ghosn. “NISSAN Value-Up is a clear plan with specific commitments. Within this framework for action, we will create more value for more customers, employees and shareholders in more world markets than ever before.”

Under the plan, Nissan will expand its worldwide presence, and Infiniti will be launched as a global tier-one luxury brand. Currently marketed in North America, Taiwan and the Middle East, Infiniti will be expanded to Korea, China and Russia.

Through the end of fiscal year 2007, 28 all-new Nissan and Infiniti models will be launched globally.

Other FY04 financial highlights:
Indebtedness
Nissan’s net automotive debt has been eliminated. Nissan had 205.8 billion yen (US $1.91 billion, euro 1.53 billion) in cash at the close of fiscal year 2004.

Dividend
As previously announced, Nissan will propose a 12-yen-per-share year-end dividend at the company’s annual general shareholders meeting on June 21, 2005, for a full-year dividend of 24 yen per share for fiscal year 2004.

Outlook for FY05:
Business risks include volatility in foreign exchange rates, higher commodity prices, higher interest rates, higher energy prices, and uncertainty about the levels of growth in the U.S. and Japanese markets. Opportunities lie in the accelerated implementation of NISSAN Value-Up.

FY05 forecast:
Based on this outlook and assuming foreign exchange rates of 105 yen/dollar and 130 yen/euro, Nissan filed the following forecast for the fiscal year ending March 31, 2006, with the Tokyo Stock Exchange:
· consolidated net revenues of 9 trillion yen;
· operating profit of 870 billion yen;
· ordinary profit of 860 billion yen; and
· net income of 517 billion yen.

Note: Amounts in dollars and euros are translated for the convenience of the reader only at the foreign exchange rates of 107.6 yen/dollar and 134.4 yen/euro, the average rates for the fiscal year ending March 31, 2005.

biker

Shift_money

LexFather

They need to reinvest it in the damn product but hey, if people buy them, more power to Nissan.

Xenthar

Interesting read. Thanks for posting. Its a good thing he isnt planning to extend infiniti to europe. I mean...if toyota/lexus arent too successful in europe, what more if infiniti tries. I only see infiniti extending to europe when toyota becomes very successful. That way, europeans will welcome japanese luxury brands more.