Nissan shares fall as it lowers profit forecast

united auto nissanShares of Japanese carmaker Nissan have fallen 10% to 861 yen in Tokyo after the firm cut its full-year profit forecast.

On Friday, the firm said it expected to make a profit of 355bn yen ($3.6bn; £2.2bn) for the year to 31 March 2014, down from an earlier forecast of 420bn.

Nissan said tough conditions in Europe and recent recalls had hurt its earnings. It added that demand in emerging markets had been “volatile”.

Japan’s share market was closed Monday.

Analysts said that investors were worried about the short term prospects of the firm,

“There are a few segmental trends which don’t favour Nissan,” Vivek Vaidya, a motor sector analyst at the consulting firm Frost & Sullivan told the BBC.

“Large pick-up segment in US is on the rise where Nissan is not a leading player, emerging markets like India are slowing down, currency fluctuations are eating into their profit and electric vehicles segment hasn’t yet taken off,” he added.

To continue reading the article, please go to http://www.bbc.co.uk/news/business-24800285.

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