TOKYO (AP) — Nissan lowered its profit forecast for the full year on Tuesday, partly due to special charges related to alleged false financial reporting by its former chairman, Carlos Ghosn.
Nissan Motor Co.’s profit in the October-December quarter was 70.4 billion yen ($637 million), down from 301.6 billion yen the previous year. Quarterly sales grew 6 percent to 3.05 trillion yen ($27.5 billion).
The main factor behind the sharp weakening in profit for the fiscal third quarter was the absence of a lift from U.S. tax reforms that sharply boosted Nissan’s earnings in late 2017.
The maker of the Leaf electric vehicle, X-Trail sport utility vehicle and Infiniti luxury models cut its profit forecast for the fiscal year through March to 410 billion yen ($3.7 billion), down 45 percent on year. The previous projection was for a 500 billion yen (4.5 billion) profit.
The company said the main reason for the downgrade was faltering sales in China and the U.S.
But it also logged about 9.2 billion yen ($83 million) in costs related to the alleged false underreporting of Ghosn’s compensation, according to Nissan.