Nissan’s Operating Profit Jumps 25%

Nissan Motor Co.’s operating profit surged 25% to 103.3 billion yen ($935 million) in October-December. Net revenue rose 6% to 3.0 trillion yen ($27.6 billion).

But adjusted net income for the period plummeted 77% to 70.4 billion ($636 million), mainly because of a comparison to last year’s windfall from changes in U.S. corporate taxes. This year’s results also include a 9.2 billion-yen ($84 million) charge for previously undisclosed deferred compensation for former Chairman Carlos Ghosn.

The company’s operating margin through the first three fiscal quarters ended Dec. 31 slumped to 3.7% and is expected to finish the year at 3.9%. The original outlook predicted a 4.5% margin.

Nissan says unit wholesales in its fiscal third quarter grew 5% to 1.03 million cars and trucks. Retail sales for the period fell 3% to 1.34 million vehicles, led by declines in the U.S. (-6% to 486,000 units) and Europe (-16% to 142,000).

The company has cut its outlook for the fiscal year ending March 31. Nissan now expects it will sell 5.60 million vehicles over the 12-month period, down from its previous guidance of 5.9 million units.

Revenue for the full fiscal year is now estimated at 11.6 trillion yen (down 400 billion), with an operating profit of 450 billion yen (down 90 billion). Adjusted net income is expected to total 410 billion yen, down 90 billion yen.