Nissan lowers profit forecast by 53%

Nissan has reported a 39% drop in its second-quarter profit to the end of September. The car manufacturer has now been forced to lower its profit forecast by 53% for the fiscal year to March 2009.

It has also announced that it will cut production by about 200,000 vehicles for this fiscal year in response to the current global economic crisis. In the US, second-quarter profit similarly fell 37%.

The Tokyo-based car-maker expects net income to be £1.03bn for year ending March 31, which is less than half of what it estimated in May this year. It also expects its earnings to decline by 67%, its largest annual fall since 2001.

Nissan’s decline in profit forecasts follows other large auto-makers, such as Honda, Mitsubishi Motors and Mazda Motors, which have all reduced their earning forecasts.

Nissan chief executive Carlos Ghosn expects the economic gloom to last until 2010, and has also announced that it would cut as many as 1000 jobs.

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