Nissan first half earnings seen solid

Nissan Motors is expected show a solid rise in first half profit, benefiting from cost cuts and a weaker yen, but concerns about…

Nissan Motors is expected show a solid rise in first half profit, benefiting from cost cuts and a weaker yen, but concerns about the US market in the aftermath of the September attacks will dog the second half.

A poll of five analysts showed an average forecast of 164 billion yen in April-September group operating profit, a 22 per cent rise from the same period a year earlier.

Forecasts ranged from 150 billion yen to 175 billion yen.

First half results will not be too much of worry. The weaker yen will have helped a lot, said Mr Seiji Sugiura, an auto analyst at Nomura Securities.

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Two projections for group net profit ranged from 150 billion yen to 167 billion yen compared with 172 billion a year earlier.

Japan's second-largest car maker is not due to officially announce first half earnings until November 12th, but CEO Mr Carlos Ghosn will provide some details on first half performance and the outlook for the full year at a news conference tomorrow.

Nissan, which is 37 per cent owned by French automaker Renault SA, also plans a separate briefing on preliminary first half results on October 25th.