Nissan Motor Co. said Wednesday that second-half profit will go to zero because of lower sales in the United States and a stronger yen.
Chief Executive Officer Carlos Ghosn made the comments in an interview with the Wall Street Journal, which were confirmed by Nissan spokesman Simon Sproule. Last month, the company forecast second-half net income of ¥33.7 billion and operating profit of ¥78.4 billion.
The yen has gained 16 percent against the dollar and 34 percent against the euro this year, eroding Nissan's overseas earnings. Lower demand for Sentra small cars and Pathfinder sport utility vehicles drove the carmaker's U.S. sales down 34 percent in October as the industry heads to the lowest annual tally in 15 years.
"There's a possibility of a loss in the second half, depending on what happens with the currency and sales," said Koji Endo, an analyst at Credit Suisse Securities (Japan) Ltd., who rates the company "underperform."
Nissan shares have fallen 71 percent so far this year.
U.S. sales are at "depression level," according to David Cole, chairman of the Center for Automotive Research in Ann Arbor, Mich., forcing carmakers to offer incentives to lure buyers back into showrooms.
Nissan based its profit forecast in October on an exchange rate of ¥103.1 to the dollar but the yen traded at ¥96.78 against the U.S. currency Wednesday.