Automotive Intelligence

News of  April 18, 1999

Page 1 of 7


 


Nissan loss expected bigger than expected, chairman to resign
TOKYO - AP World: April 15, 1999 -- Nissan Motor Co posted a net loss for the last fiscal year that exceeds 30 billion yen ($ 252 million), three times the company's latest estimate, a newspaper reported Wednesday.
Nissan Chairman Yoshifumi Tsuji was expected to resign to take responsibility for the bigger-than-expected loss and a restructuring effort designed to resuscitate the troubled company, the Yomiuri newspaper said.

A Nissan spokeswoman told Dow Jones Newswires that the report was speculative. She said the company is putting together its earnings results for the latest fiscal year and no final numbers are available. The red ink resulted from sluggish domestic sales, which eroded operating profit, along with special losses from Nissan's securities portfolio and aid extended to affiliated dealerships, the paper reported. Nissan's parent company was expected to lose a lot more money than it had expected in the fiscal year which ended March 31, the paper said. In November, Nissan projected a net loss of 10 billion yen ($ 84 million) for the year, the Yomiuri said. The newspaper also reported that Nissan might either slash its dividend payments or forego them entirely.

Also Wednesday, a spokesman for Nissan said the company's North American operations are likely to have posted a profit in fiscal 1998 for the first time in two years.

 

GM Posts Record Quarterly Financial Results for I/1999
DETROIT, April 15, 1999-- General Motors Corp. (GM) today reported an all-time quarterly record of $3.10 basic earnings per share of GM $1-2/3 par value common stock in the first quarter of 1999 on consolidated net income of $2.1 billion. That compares with net income of $1.6 billion, or $2.31 per share, in the first quarter of 1998. The results include Delphi Automotive Systems, which as announced on Monday is being spun off as an independent company. Delphi, which is reporting its results separately today, is now classified by GM as a discontinued operation and is treated as such in the balance of this release.

Jack Smith & Richard Wagoner

Excluding Delphi, net income and earnings per share from continuing operations were an all-time quarterly record of $1.8 billion, or $2.73 basic earnings per share. That compares with $1.4 billion, or $1.96 per share, for continuing operations in the first quarter of 1998.

                                                                                                                            

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