Nissan April-Sept. operating profit tanks 85% on stronger yen

©Kyodo News

Nissan Motor Co. reported Tuesday an 85.0 percent drop in group operating profit for the fiscal first half and sharply cut its profit outlook for the full year ending March.

The Japanese automaker cited the stronger yen, higher material costs and the limited prospects of a global auto market recovery for the result.

It posted an operating profit of 31.61 billion yen ($289 million) for the April-September period, while its group net profit tumbled 73.5 percent to 65.37 billion yen on sales of 5.00 trillion yen, down 9.6 percent.

The company cut its group net profit estimate to 110 billion yen from 170 billion yen forecast earlier and an operating profit projection to 150 billion yen from 230 billion yen.

It also lowered its sales outlook to 10.60 trillion yen from 11.30 trillion yen.