Nissan shares fall as it lowers profit forecast

Nissan cars Nissan has blamed tough conditions in some markets for the cut in profit forecast

Shares of Japanese carmaker Nissan have fallen 10% to 861 yen in Tokyo after the firm cut its full-year profit forecast.

On Friday, the firm said it expected to make a profit of 355bn yen ($3.6bn; £2.2bn) for the year to 31 March 2014, down from an earlier forecast of 420bn.

Nissan said tough conditions in Europe and recent recalls had hurt its earnings. It added that demand in emerging markets had been "volatile".

Japan's share market was closed Monday.

Analysts said that investors were worried about the short term prospects of the firm,

"There are a few segmental trends which don't favour Nissan," Vivek Vaidya, a motor sector analyst at the consulting firm Frost & Sullivan told the BBC.

"Large pick-up segment in US is on the rise where Nissan is not a leading player, emerging markets like India are slowing down, currency fluctuations are eating into their profit and electric vehicles segment hasn't yet taken off," he added.

Management changes

The cut in the forecast came despite the company posting a 6.5% jump in profit for the July-to-September quarter, from a year earlier.

It reported a net profit of 189.8bn yen for the period.

Nissan also announced changes to its senior management which it said were "designed to enhance Nissan's performance and ensure the company will deliver the 8% operating profit margin target set out in the Power 88 mid-term plan".

Under the changes, Nissan's chief operating officer (COO), Toshiyuki Shiga, will become a vice chairman with responsibility for external affairs, asset management and corporate governance.

The office and functions of the COO will be reorganised among three senior executives, the company said.

More on This Story

Global Car Industry

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features

From BBC Capital

Programmes

  • StudentsClick Watch

    Could a new social network help tailor lessons to students’ needs and spot when they fall behind?

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.