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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: MikeM54321 who wrote (4316)	6/9/1998 9:19:00 PM
From: Step1	Read Replies (1) \| Respond to of 9980

More confusing YEN/Dollar angles... Although as I have posted earlier companies in public declare they do not think a weak yen is any good, this report suggests that on the contrary, they are quite happy to see that way... >>> Nissan To Cut Export Prices On Cars, Parts Amid Weakness In Yen Dow Jones Online News, Tuesday, June 09, 1998 at 10:58 TOKYO -(Dow Jones)- Nissan Motor Co. has lowered its free-on-board export prices, denominated in overseas currencies, on autos and auto parts by 3% to 4% on average, the Nihon Keizai Shimbun reported in its Wednesday morning edition, citing company sources. The company is seeking to take advantage of the continuing weakness of the yen against the U.S. dollar and European currencies, the newspaper said. The new prices will mean lower purchase costs for Nissan's overseas units and, Nissan hopes, increased price competitiveness and operating strength. In the current fiscal year through March 1999, Nissan (NSANY) plans to export 670,000 vehicles, a 5.8% decline from last fiscal year. Exports to North America are denominated in dollars, while shipments to Europe are denominated in Deutsche marks. The yen's average exchange rate in fiscal 1998 is expected to be 128 yen to the dollar and 72 yen to the mark, compared with 120 yen to the dollar and 69 yen to the mark last year. Each one-yen depreciation of the Japanese currency against the dollar translates into 5.5 billion yen (about $25.57 billion) in extra annual profit for Nissan. Although the profitability of parts imports is sliding, Nissan calculates it can realize 40 billion yen in profit from foreign-exchange gains in the current year if it doesn't lower export prices. The car maker plans to halve its potential foreign-exchange profit and use it to help boost the profits of its overseas sales units. Copyright (c) 1998 Dow Jones & Company, Inc. All Rights Reserved <<<