Nissan issues profit-warning; sees 1st FY opg profit fall in 7-yrs on weak sales |
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Published
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Fri, 02 Feb 2007 09:21
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TOKYO (XFN-ASIA) - Nissan Motor Co Ltd issued a profit-warning for the full year to March 2007, on the back of sluggish vehicle sales, as it prepares to suffer the first decline in operating profit in seven years.Japan's second-largest automaker said its operating profit in the fiscal third-quarter ended Dec 31 tumbled 16.6 pct from a year earlier to 183.06 bln yen as global retail sales tumbled 2.7 pct from a year earlier to 149,000 vehicles in the three months.Nissan said due to a lack of new model launches, its global auto production dropped in 11 of the past 12 months to December.The automaker also attributed the poor top-line performance to higher procurement cost and rising energy prices and stiff competition.After reporting a weaker performance for the third quarter, Nissan said it now expects to post an operating profit of 775 bln yen for the full year, after having previously projected 870 bln yen in operating income.It also cut its year to March net profit estimate to 460 bln yen from 523 bln forecast previously.In the year to March 2006, Nissan earned operating income of 871.8 bln yen.In issuing the profit-warning, Nissan president Garlos Ghosn said in a prepared statement that he plans to work out 'fresh measures' to revive the automaker's profitability and present them in April when it releases full-year results.Despite the tumble in the operating income in the October-December period, its net profit rose 3.5 pct from a year earlier to 378.6 bln yen, thanks to the sale of its equity interest in Nissan Diesel Motor to Volvo of Sweden.(1 usd=120.73 yen)yasuhiko.seki@xfn.com
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Japan's Nissan Motor Q3 to Dec net profit 104.46 bln yen vs 134.98 bln 