Nissan halves yearly profit forecast

Announcing financial results for the first half of its 2008 financial year which ends on 31 March, 2009, the Tokyo-based car maker said that in the six months to September, net revenues amounted to 4.8693 trillion yen (£28bn) in the period, down 3.9% compared with a year ago. Operating profit totalled 191.6 billion yen (£1.1bn), down 47.8%. In the first half, Nissan sold 1.9 million vehicles worldwide, up 4.7% compared with last year. Sales in the US were 516,000 units, down 3.4%. In Europe, sales were up 0.7% at 306,000 units. Nissan CEO Carlos Ghosn (pictured) said: “The global financial and economic crisis has had a profound effect on every area of our industry, with the grip on credit and declining consumer confidence being the most damaging factors. Since we see no relief in the second half, we are taking all necessary and responsible measures to protect the company and preserve our ability to rebound when conditions improve.” The company said the effects of the global financial and economic crisis had created conditions of extreme volatility and uncertainty that were expected to continue for the remainder of its financial year and had revised its operating profit and its net income forecast for the full fiscal year 2008 to 270 billion yen (£1.5bn) and 160 billion yen (£900m), respectively.