YOKOHAMA -- Nissan Motor reported a halving of quarterly operating profit, weighed by costs from improper final inspection procedures at home and higher discounts in the U.S.
Operating profit was 82.4 billion yen ($752 million) between October and December, down from 163.51 billion a year earlier, Nissan said in a statement on Thursday.
The automaker took a 39.6 billion yen hit in the quarter due to costs related to improper procedures for final inspections on vehicles produced at its Japan plants, while U.S. marketing and sales expenses, which include incentives, cost the automaker 41.8 billion yen.
Nissan admitted the inspection issue late last year, which resulted in the recall of around 1.2 million vehicles.
Operating profit in North America fell 37.3 percent to 16.9 billion yen, dropping due to high incentives to sell older models. A change in U.S. income tax policy resulted in a positive impact of 207.69 billion yen on net profit, Nissan said.
In October-December, Nissan sold 1.375 million vehicles globally, slightly lower from 1.38 million units a year earlier. Sales in the United States, its biggest market, rose 4.1 percent from last year to 397,000 units, while sales in China rose 15.7 percent to 369,000 units.
Nissan expects to sell 5.78 million vehicles in the year to March, down from a previous forecast for 5.83 million units, due to lower sales in Japan and Europe, although it expects stronger sales in Asia, including China.
Nissan cut its forecast for full-year operating profit. It expects operating profit in the year ending March to slide to 565.0 billion yen ($5.15 billion) from 742.23 billion yen last year. This is down from a previous forecast for 685.0 billion yen, and would mark Nissan's lowest profit since 2014.