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Rough road ahead for Nissan

Tokyo, February 2, 2008

Japan's Nissan Motor has reported a 16 per cent rise in quarterly profit, helped by popular vehicles such as the Rogue and Qashqai SUVs.

However, the company warned a weak dollar and US economic woes meant a rougher road lay ahead.

Excluding an accounting change, third-quarter operating profit fell 7.2 per cent but Japan's number three carmaker - 44 per cent owned by Renault - stuck to its forecast for annual operating profit to rise 3 per cent.

'We are taking a cautious stance for the fourth quarter and beyond,' corporate vice-president Joji Tagawa told a news conference, citing turmoil in the US market due to the subprime crisis and high commodity and energy prices.

As well, a stronger yen against the dollar will cut profits when they are brought home to Japan.

'But unlike the situation a year ago this is due to tough external conditions and not Nissan-specific challenges,' Tagawa added.

Nissan is enjoying powerful growth in emerging markets such as China, Russia and the Middle East, as well as a recovery in the US.

Global vehicle sales climbed 13 per cent in the quarter, with all regions posting a rise except Japan, where the car industry faces a contracting market as the population ages.




Tags: Renault | profit | nissan | rough | woes |

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