Nissan reports sales up, profit margins down

Nissan announced its first half financial results Friday - a mix of good news and bad. On the good side, revenues were up 12.1 percent year over year, to $41.01 billion, and unit sales were up 15 percent, to 1,834,000. President and CEO Carlos Ghosn (at right) attributed the good results to "appealing products and a competitive cost structure," going on to reaffirm the company's fiscal forecast for the rest of the year.

The not-so-good news lies in declining margins and profits, with profits in the second quarter of 2005 down 16.7 percent over 2004, even though unit sales for the quarter were up 15.6 percent. Tough price competition is likely to continue to put downward pressure on profits for the rest of the year.

[Source: Nissan Motor Co.]