Nissan’s Net Income Drops 16%

Currency effects and slower sales growth in China and the U.S. caused Nissan Motor Co.’s net income to fall 16% to 146 billion yen ($1.4 billion) in the company’s fiscal second quarter ended Sept. 30.

Revenue for July-September shrank 12% to 2.7 trillion yen ($25.9 billion). Operating profit sagged 19% to 163.9 billion yen ($1.6 billion). Nissan says unfavorable exchange rates cut its operating results by 180 billion yen ($1.7 billion).

The company's global vehicle sales through the last two quarters were virtually flat at 2.61 million units. Deliveries for the six-month period rose 4% in the U.S. (to 783,000 units), China (to 610,000) and Europe (to 319,000, excluding Russia). Gains in those markets offset shrinkage in Japan when the company suspended sales of two minivehicles supplied by Mitsubishi Motors Corp. because of MMC’s fuel economy ratings scandal.

Nissan forecasts its vehicle sales will rise 3% to 5.6 million units in the fiscal year ending March 31. The company affirms its guidance in May that its full fiscal year revenue will dip 3% to 11.8 trillion yen, operating profit will decline 10% to 710 billion yen, and net income will be flat at 525 billion yen.