Nissan Trims Outlook, Restructures Top Management

Nissan Motor Co. has reduced its profit forecast 15% to 355 billion yen ($3.6 billion) for the current fiscal year ending next March 31, citing weak demand in Europe, Indonesia and Thailand. The company netted 342 billion yen in the previous fiscal year.

For the first half of fiscal 2013-2014, Nissan's net income rose 12% to 254 billion yen. Revenue jumped 15% to 5.2 trillion yen, but operating profit dropped 8% to 265 billion yen.

The company's retail sales in the first half dropped 2% to 2.5 million vehicles. A 14% increase in North America and 4% improvement in Japan failed to offset declines in China (-8%), Europe (-6%) and other markets (8%). Unit sales fell 14% in Russia.

For the full fiscal year, Nissan expects to sell 5.2 million vehicles compared with 5.3 million forecast previously.

Separately, CEO Carlos Ghosn says the company will implement several top management changes on April 1.

That's when the company will eliminate the chief operating officer position and promote current COO Toshiyuki Shiga to vice chairman. The COO functions will be distributed among three new positions:

• Chief Competitive Officer. As announced in March, this new job will go to Hiroto Saikawa, who will continue as head of purchasing for Asia.
• Special Projects. Executive Vice President Colin Dodge will add this title.
• Customer Satisfaction. This global responsibility will be assigned to Kimiyasu Nakamura, president of Nissan's China venture with Dongfeng Motor Co.