Nissan lowers profit outlook for FY2018 amid sales deceleration, scandal

Nissan Motor Co. announced Tuesday that owing to weaker international vehicle sales, it has lowered its net profit outlook for the business year ending March 31.

The Yokohama-based automaker said it now projects a group net profit of 410 billion yen (3.70 billion U.S. dollars) for the business year ending next month.

Nissan's latest forecast was lower than the previous estimate of 500 billion yen (4.52 billion U.S. dollars) of net profit for FY 2018.

The maker of the LEAF compact hatchback reported its group net profit at 316.66 billion yen (2.87 billion U.S. dollars) in the April to December period in 2018, dropping 45.2 percent from the same period of a year earlier.

Nissan also said its consolidated operating profit retreated 13.9 percent to 313.68 billion yen (2.83 billion U.S. dollars) on a 0.6 uptick of sales worth 8.58 trillion yen (77.64 billion U.S. dollars).

Nissan, maker of Japan's top-selling Note hatchback-MPV crossover in 2018, also lowered its group operating profit outlook for the business year from 540 billion yen (4.88 billion U.S. dollars) to 450 billion yen (4.07 billion U.S. dollars), due to expected sales being reduced from 12 trillion yen (108.59 billion U.S. dollars) to 11.6 trillion yen (104.97 billion U.S. dollars).

Japan's second-largest automaker is currently dealing with the fallout from its former Chairman Carlos Ghosn being charged with financial improprieties relating to the misreporting of his remuneration.

Along with reporting its profit outlook for the first time since Ghosn's arrest, Nissan CEO Hiroto Saikawa said Tuesday he would meet the new Renault SA chairman here soon.

Ghosn's arrest, according to industry insiders, may lead to a change in the structure of the three-way alliance between Nissan, Renault and Mitsubishi Motors.