Tuesday, June 26, 2012

Nissan chief wary despite quick disaster recovery

FILE - In this March 21, 2012 file, Nissan Motor Co. Chief Executive Carlos Ghosn speaks during a news conference on the company's brand "Datsun" at its head office in Yokohama, near Tokyo. Ghosn said Tuesday, June 26, the automaker needs to conserve cash despite its quick recovery from a year of disasters as the global economic outlook is highly uncertain. Ghosn told the company's annual shareholders meeting that Nissan Motor Co. had bounced back from the earthquake and tsunami in northeastern Japan and the flooding in Thailand that battered Japanese automakers last year. Nissan, like other Japanese automakers, is also looking to growth in emerging markets such as Indonesia, India and Russia. (AP Photo/Itsuo Inouye)

FILE - In this March 21, 2012 file, Nissan Motor Co. Chief Executive Carlos Ghosn speaks during a news conference on the company's brand "Datsun" at its head office in Yokohama, near Tokyo. Ghosn said Tuesday, June 26, the automaker needs to conserve cash despite its quick recovery from a year of disasters as the global economic outlook is highly uncertain. Ghosn told the company's annual shareholders meeting that Nissan Motor Co. had bounced back from the earthquake and tsunami in northeastern Japan and the flooding in Thailand that battered Japanese automakers last year. Nissan, like other Japanese automakers, is also looking to growth in emerging markets such as Indonesia, India and Russia. (AP Photo/Itsuo Inouye)

In this photo taken May 29, 2012, the global headquarters of Nissan Motor Co. in Yokohama, near Tokyo is shown. Nissan Chief Executive Carlos Ghosn defended the quick recovery of the Japanese automaker from a year of disasters to record global sales Tuesday, June 26, 2012, while fielding shareholders questions about low dividends and lagging stock prices. (AP Photo/Itsuo Inouye)

(AP) ? Nissan Chief Executive Carlos Ghosn said Tuesday the automaker needs to conserve cash despite its quick recovery from a year of disasters as the global economic outlook is highly uncertain.

Ghosn told the company's annual shareholders meeting that Nissan Motor Co. had bounced back from the earthquake and tsunami in northeastern Japan and the flooding in Thailand that battered Japanese automakers last year. Nissan, like other Japanese automakers, is also looking to growth in emerging markets such as Indonesia, India and Russia.

Nissan's January-March profit more than doubled to 75.3 billion yen ($941 million). Its global sales reached a record 4.85 million vehicles for the business year ended March in a remarkable recovery from production disruptions stemming from the disasters. Nissan is expecting a 400 billion yen ($5 billion) profit for the business year through March 2013.

But a shareholder who identified herself only by her surname Takahashi demanded to know why she was getting a dividend of only 20 yen (31 cents) a share if Nissan was doing so well.

Ghosn said Nissan has less cash than Japanese rivals Toyota Motor Corp. and Honda Motor Co. and must be more prudent in the current economic situation. The U.S. economic recovery has stalled and Europe's economy is stymied by high debt and austerity measures.

"We are facing extreme volatility," he told nearly 1,200 shareholders packing a convention center in the port city of Yokohama, where Nissan is headquartered.

Ghosn also grumbled about the strong yen, which erodes the value of overseas sales for Japanese exporters like Nissan. He said he was worried Nissan might have to reduce Japan production if the government didn't do something to bring the yen's strength under control.

Nissan, which makes the Altima sedan, Infiniti luxury model and Leaf electric car, is allied with Renault SA of France.

Nissan is reviving the Datsun nameplate brand that helped it grow in the U.S. when it was still a newcomer during the 1960s, but this time for emerging markets.

Nissan is also counting on growth in China, although not at the stupendous pace of a few years ago.

"We continue to be bullish on China," Ghosn said.

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Follow Yuri Kageyama on Twitter at http://twitter.com/yurikageyama

Associated Press

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