Nissan Q1 profit soars on sales, keeps guidance

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Thu Jul 29, 2010 8:02am BST

YOKOHAMA, Japan, July 29 (Reuters) - Nissan Motor Co (7201.T) reported its strongest quarterly operating profit in more than two years on Thursday as sales surged in China and other major markets, but it left its cautious guidance unchanged amid an increasingly murky outlook for demand.

Japan's No. 3 automaker, held 43 percent by Renault SA (RENA.PA), reported an operating profit of 167.9 billion yen

($1.92 billion) for the April-June quarter, up from 11.6 billion yen a year ago and beating the average 124.7 billion estimated by six analysts surveyed by Reuters.

First-quarter net profit was 106.7 billion yen, versus a 16.53 billion yen loss a year earlier.

Nissan is aiming to boost its global market share this year with sales growth of about 8 percent to 3.8 million units, driven by the revamped Micra/March subcompact, Juke crossover, and other new models including the much-hyped Leaf electric car.

Despite assumptions for a stronger yen against the dollar and euro, Nissan expects operating profit to grow 12 percent to 350 billion yen in the year to end-March. A survey of 22 analysts by Thomson Reuters I/B/E/S forecasts profit of 401 billion yen.

Shares of Nissan have fallen about 15 percent in the year to date, in line with the Tokyo transport sector subindex .ITEQP.T, which is down about 14 percent.

Nissan's shares closed up 1.8 percent before the results were announced on Thursday, against a flat transport sector.

($1=87.47 Yen)

(Reporting by Chang-Ran Kim; Editing by Lincoln Feast)

((ran.kim@thomsonreuters.com; +81-3-6441-1804; Reuters Messaging: ran.kim.reuters.com@reuters.net))

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