Annual profit forecast cut by Nissan

<p>Nissan has announced a cut in its profit forecast.</p>

Nissan has announced it is lowering its annual profit forecast after recent recalls.

The Japanese car manufacturer revealed that it now expects the full-year profits to the end of March 2014 to be 355 billion yen (£2.2 billion).

Nissan noted "sluggish" market conditions in Europe are among the reasons for this cut, which is significantly down from its previous prediction of a 420 billion yen profit for the year.

Carlos Ghosn, chief executive of Nissan, explained in a statement that the results – which included a rise in profit between April and September – reflect "improved demand for our new products in Japan and the Americas".

He added: "This was offset by difficult conditions in Europe, volatile demand in several emerging markets and higher expenses related to recalls."

The share price of Nissan fell today (November 1st) on the back of the news. Its stocks are trading around 7.5 per cent down for the day as a result of the lowering of its profit forecast.

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