JAPAN: Japanese automaker Nissan Motor cuts its full-year net profit forecast by a fifth after car sales tumbled in China amid anti-Japanese protests over a territorial dispute

Record ID: 466707

  • Title: JAPAN: Japanese automaker Nissan Motor cuts its full-year net profit forecast by a fifth after car sales tumbled in China amid anti-Japanese protests over a territorial dispute
  • Date: 6th November 2012
  • Summary: YOKOHAMA, JAPAN (NOVEMBER 6, 2012) (REUTERS) NISSAN MOTOR'S GLOBAL HEADQUARTERS SIGN READING: "NISSAN" NISSAN MOTOR'S CHIEF OPERATING OFFICER TOSHIYUKI SHIGA STANDING AT PODIUM NEWS CONFERENCE IN PROGRESS (SOUNDBITE) (Japanese) NISSAN MOTOR'S CHIEF OPERATING OFFICER TOSHIYUKI SHIGA SAYING: "For the 2012 fiscal year, Nissan has decided to adjust the full-year net profit forecast downward reflecting the continuing strength of yen currency, the negative effects on our business resulting from the political demonstrations in China and the challenging economic environment in Europe." SHIGA SPEAKING AT PODIUM JOURNALISTS SEATED (SOUNDBITE) (Japanese) NISSAN MOTOR'S CHIEF OPERATING OFFICER TOSHIYUKI SHIGA SAYING: "Despite the recent political tension between Japan and China, the Chinese market is unchangingly important for us." CONFERENCE IN PROGRESS "NISSAN" SIGN (SOUNDBITE) (Japanese) NISSAN MOTOR'S CHIEF OPERATING OFFICER TOSHIYUKI SHIGA SAYING: "We are gradually seeing signs of recovery in China. Customers are gradually coming back to dealerships." SHIGA BOWING NISSAN VEHICLES ON DISPLAY IN SHOWROOM NISSAN LOGO VARIOUS OF NISSAN'S VEHICLES ON DISPLAY NISSAN'S ELECTRIC VEHICLE LEAF ON DISPLAY SIGN READING: "ZERO EMISSION" LEAF BEING CHARGED
  • Embargoed: 21st November 2012 12:00
  • Keywords:
  • Location: Japan
  • Country: Japan
  • Topics: Business,Industry
  • Reuters ID: LVADN22I4GLZFFSBJKN00GC5GJ7F
  • Story Text: Nissan Motor cut its full-year net profit forecast by a fifth to 3.99 billion U.S dollars on Tuesday (November 6) after car sales tumbled in China, the world's biggest autos market, amid anti-Japanese protests over a territorial dispute.

    "For the 2012 fiscal year, Nissan has decided to adjust the full-year net profit forecast downward reflecting the continuing strength of yen currency, the negative effects on our business resulting from the political demonstrations in China and the challenging economic environment in Europe," Nissan's Chief Operating Officer Toshiyuki Shiga said in a news conference at the company's headquarters in Yokohama, Japan.
    Demand for Nissan, Honda and Toyota Motor cars in China was virtually halved due to protests in a row over disputed islets in the East China Sea. Nissan is the most exposed of the three to China, where it has 27 percent of its vehicle sales.
    Nissan and its China joint venture with Dongfeng Automobile Group sold 64,300 vehicles in China in October, down 41 percent from a year earlier.

    "Despite the recent political tension between Japan and China, the Chinese market is unchangingly important for us," Shiga said.
    Nissan trimmed its 2012 China sales forecast to 1.175 million vehicles from a previous 1.35 million. Globally, it said it now expects to sell 5.08 million vehicles in the year to end-March, down from a previous estimate for 5.35 million.
    Shiga said there are signs of recovery.

    "We are gradually seeing signs of recovery in China. Customers are gradually coming back to dealerships," Shiga told reporters.
    Shares in Nissan, 43.4 percent-held by Renault SA and valued at close to 39 billion U.S. dollars, have slipped 2 percent so far this year, trailing Toyota's 26 percent gain and Honda's 3 percent rise.
    Nissan shares closed down 2 percent on Tuesday ahead of the earnings.
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