Nissan's profits are up, but forecasts are down

November 7, 2012 12:00 AM

Nissan saw its third quarter profits grow almost 8 percent, but a sales slump across Europe and China has weakened its outlook, The Associated Press reports.

From July to September, the automaker saw better-than-expected sales, but experts do not predict the trend will last. Part of the reason is because of rising anti-Japanese sentiments in China, where many members of the market segment have begun boycotting Japanese products. For Nissan, a Japanese manufacturer, losing out on millions of dollars of sales throughout the continent would make it nearly impossible to reach its expected goals. The brand has already lowered its projected sales forecast from 5.35 million vehicles to 5.08 million.

Another factor affecting sales is the strength of the Japanese yen, The Wall Street Journal reports. The currency has recently been overvalued, and, coupled with rough economic times in much of the world, has many prospective buyers turning to auto repair instead of purchasing new vehicles.

"We're revising full-year guidance downwards given the overvalued yen, a disrupted selling environment in China resulting from the political demonstrations and the challenging economic environment in Europe," Toshiyuki Shiga, Nissan's chief operating officer, told the news source. 

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