Nissan Forecasts Profit That Misses Estimates on Yen, MinicarsMa Jie and Masatsugu Horie
Stronger yen erodes value of profit brought back home
Nissan agrees to buy 34% in minicar partner Mitsubishi
Nissan Motor Co., which agreed to buy a 34 percent stake in Mitsubishi Motors Corp., forecast annual profit that was little changed after a stronger yen eroded overseas earnings and domestic sales of minicars supplied by Mitsubishi slumped after the disclosure of mileage fraud.
Net income may rise to 525 billion yen ($4.8 billion) in the fiscal year ending March from 523.8 billion yen in the preceding period, the automaker said in a statement Thursday. That compares with 548.6 billion yen average of 22 analysts’ estimates compiled by Bloomberg.
Mitsubishi Motors will sell about 237.4 billion yen in shares to Nissan, according to a statement. The purchase is poised to vault Nissan past Mitsubishi group companies to become the single-largest shareholder of one of Japan’s smallest carmakers.