Japanese automaker Nissan lowers its profit forecast amid incentive, inventory woes [Video]

FILE – Logos at a Nissan showroom are seen in Ginza shopping district in Tokyo, March 31, 2023. (AP Photo/Eugene Hoshiko, File) (Eugene Hoshiko, Copyright 2023 The Associated Press. All rights reserved)

TOKYO – Nissan lowered its full fiscal year outlook on Thursday, as the Japanese automaker reported a 73% decline in profit in the April-June quarter compared to the previous year.

Chief Executive Makoto Uchida called the results “very challenging,” blaming sales incentives and marketing expenses resulting from intense competition, especially in the U.S. market.

Nissan’s stock price plunged on the Tokyo Stock Exchange after the earnings were announced, finishing down nearly 7%.

The profit challenges came despite its global vehicle sales holding steady at 787,000, according to Nissan Motor Co., based in the port city of Yokohama.

Quarterly sales edged up 3% to 2.99 trillion yen ($19.6 billion).

The need to optimize inventory also chipped away at profitability. Nissan’s …