... (A/Stable) and Nissan's (BBB/Stable) solid operating performance in financial year 14 (FY14, ending 31 March 2014) was supported by moderate volume growth in key markets, and boosted by a weaker yen ¡ which depreciated by 20% against the US dollar. All three posted improved FCF margins (industrial operations) of 7% and 1%, respectively, for Toyota and Nissan; and close to 0% for Honda, due to its higher capex. Fitch Ratings expects flat or very modest sales volume growth in FY15, driven by the US and China and a gradual recovery in Europe, which should offset a decline in Japan. The outlook for larger emerging markets such as India and Brazil remains uncertain, however. We have projected steady operating profit margins (industrial operations) of around 4% for Nissan and Honda, and 5%-6% for Toyota (down from FY14's 8%, which was boosted by a weaker yen). FCF margins (industrial operations) in FY15 should be at zero or modestly positive....
