Following in the footsteps of cross-country rival Honda, Nissan has slashed its full-year net profit forecast. Like Honda, Nissan's was forced to revise its yearly outlook as the result of an ongoing dispute in China.
Nissan on Tuesday announced that it is reducing its full-year net profit 20 percent to $3.99 billion. Nissan's fiscal year ends on March 31.
Prior to the announcement industry analysts were calling for a $4.71 billion profit for Nissan this fiscal year. Nissan's net profit increased 7.7 percent to $1.32 billion during the previous quarter, giving investors hope that the Japanese automaker would be able to sustain that momentum for the remainder of the year.
However, an ongoing dispute between Japan and China has hurt Nissan's sales in the world's largest auto market. Nissan's China sales fell by 41 percent last month and that trend is expected to continue for the foreseeable future. That poses a particular problem for Nissan as China is the company's single largest market, accounting for 27 percent of its overall sales, according to Reuters.
Although to a much lesser extent, Nissan has also been dealing with lower sales in the United States, which is the company's second largest market. A production issue back in July hurt the rollout of Nissan's new Atlima sedan, which is one of the company's most popular models.