By Kosaku Narioka


Nissan Motor lowered its annual vehicle-sales and profit forecasts after its first-quarter net profit fell sharply, hurt by higher sales incentives in the U.S.

The Japanese carmaker said Thursday that net profit dropped 73% from a year earlier to 28.56 billion yen, the equivalent of $185.6 million, for the three months ended June. That missed the estimate of Y98.87 billion in a poll of analysts by data provider Quick.

First-quarter revenue increased 2.8% to Y2.998 trillion.

Nissan said quarterly profit was hit by higher marketing expenses and sales incentives aimed at controlling U.S. inventory.

"We had to sell old model-year vehicles and needed higher incentives," Chief Executive Makoto Uchida said at a briefing.

Nissan's global vehicle sales declined 0.2% to 787,000 units, dragged by lower sales in North America and Japan. The carmaker booked operating losses in its North American and European businesses.

The company's stock slumped 7.0% to Y485.0 on Thursday following the results.

For the year ending March 2025, it forecast net profit to drop 30% to Y300.00 billion, compared with its previous view of an 11% decline. It attributed part of the guidance cut to higher selling expenses.

Nissan now expects global sales to rise 6.0% to 3.65 million units, down from its earlier forecast of 3.7 million units.

The automaker projected that sales in China would drop 3.0% to 770,000 units this fiscal year, compared with a previous forecast of a 0.8% increase. The lowered forecast followed a 24% decline in Chinese sales the previous year due to intense competition and consumers' shift away from conventional gas-powered vehicles.

Uchida said the Chinese market remains challenging.

The carmaker has been reshaping its global strategy following a restructuring of its alliance with Renault and Mitsubishi Motors last year.

Nissan and Honda Motor said in March that they would study ways to collaborate on electric vehicles, their core parts, and software.


--Chieko Tsuneoka in Tokyo contributed to this article.


Write to Kosaku Narioka at kosaku.narioka@wsj.com


(END) Dow Jones Newswires

07-25-24 0458ET