February 12, 2019 / 7:49 AM / 11 days ago

Nissan posts higher Q3 operating profit, but cuts FY outlook

YOKOHAMA, Japan, Feb 12 (Reuters) - Nissan Motor Co posted a 25.4 percent rise in quarterly operating profit on Tuesday as lower discounting in the United States helped the Japanese automaker improve profit in the key market, even as global sales decreased.

Japan’s second-biggest automaker posted a profit of 103.3 billion yen ($934.25 million) for the third quarter ended December, compared with 82.4 billion yen a year earlier.

The result compared with an 116.49 billion yen average of nine analyst estimates compiled by Refinitiv.

In its financial statement, Nissan said it had recognised 9.232 billion yen in additional expense in salaries and wages which had not been booked in prior years.

This reflected the more than $80 million in additional compensation related to its allegation that ousted chairman Carlos Ghosn had under-reported in salary, the company said.

Ghosn, arrested and detained in Tokyo since Nov. 19, has been indicted in Japan on charges of under-reporting his salary at Nissan over 2010-2018. He has denied the deferred pay was illegal or required disclosure, while not contesting the agreement’s existence.

Ghosn has also denied a separate breach of trust charge over personal investment losses he temporarily transferred to Nissan during the global financial crisis in 2008.

Nissan lowered its full-year profit forecast to 450 billion yen from 540 billion yen previously, based on the assumption that the yen will trade around 110.6 yen to the U.S. dollar through March 31, from a previous forecast for 105 yen. ($1 = 110.5700 yen) (Reporting by Naomi Tajitsu; Editing by Himani Sarkar)

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