Nissan sees H1 opg profit 348 billion yen

Nissan Motor Co Ltd said it expects to post a six months to September operating profit of 348 billion yen, up 84% from the year earlier 188.8 billion and above market forecasts of 260-303 billion yen, on strong auto sales and cost cutting.

The firm also upgraded its operating profit forecast for the full year to 720 billion yen, sharply above the previous forecast of 553 billion.

Nissan added that it plans to pay an annual dividend of 24 yen by the year to March 2005, up from 8 yen last year.

The market had expected Nissan to see operating profit boosted sharply by sales in the US and Japan as a result of strong product launches, and a return to profitability in Europe, but the results came in even better than hoped.

The influential Nihon Keizai Shimbun daily reported in August the company was expected to see operating profit of 280 billion yen on sales of 3.2 trln.

Analysts expect Nissan to perform less well at the net profit line than the operating as it would include tax payments as it returned to profit and also run out of non-operating assets it can sell to make exceptional gains.

For the year to March, the company forecast a current profit (keijorieki) of 660 billion yen, up 59%, net profit of 490 billion, up 32%. It had previously forecast a current profit of 488 billion yen, with net profit seen at 380 billion.