Nissan today reported a worse-than-expected 26 per cent slump in quarterly operating profit as an empty product pipeline caused a global sales slump, but maintained its full-year forecast for a marginal profit rise.
Nissan is expected to be alone among Japan's top auto makers to report an April-June profit fall as most in the industry weather high raw materials costs and increased capital spending with better sales and a weaker yen.
Rivals Toyota and Honda. continue their charge in the key US market, where a steady stream of new cars is helping them grab more business from Detroit's General, Ford Motor and DaimlerChrysler AG's US arm.
With just one new model to be offered globally in the first half, Nissan, 44 per cent owned by Renault SA, has said sales and profits would not pick up until the latter half of the business year, when it plans to roll out eight fresh models.
The United States, where Tokyo-based Nissan makes more than half its profits, will get three remodelled cars - the Infiniti G35 coupe and Altima and Sentra sedans - which together account for about two-fifths of its US sales.
"We are maintaining our forecast for the full fiscal year and remain confident that our new product introductions will provide a significant contribution to our business in the second half of this fiscal year." said chief executive Carlos Ghosn in an earnings statement.
Still, analysts are cautious as to how much Nissan can make up for lost time. Burdened by bloated inventories, US car makers have rekindled a discounting campaign that could further push up spending at Nissan, which has also seen its stock of unsold pickup trucks and sport utility vehicles grow.
Ghosn, who also heads Renault, has repeatedly dismissed worries over the current dip in demand, setting his sights on securing future growth by talking to GM about a possible three-way alliance. A decision on whether to proceed is expected by mid-October.
Nissan earned an operating profit of Yen153.35 billion ($1.31 billion) in the June quarter, compared with Yen206.26 billion a year ago.
April-June revenue rose 3.1 per cent to Yen2.21 trillion, but the boost came from a weaker yen and global unit sales fell 6 per cent to 826,000 units.