Nissan Motor


said second-quarter net income fell 39% to 73.5 billion yen ($760 million) on a severe decline in the U.S. market and as the global economic crisis hit all areas of the auto industry.

The Japanese automaker lowered its net income forecast for 2008 to 160 billion yen from earlier estimates of net income of 340 billion yen.

Nissan said net revenue in the second quarter fell 3.7% to 2.5 trillion yen. Operating profit fell 49%, while operating margin in the quarter was 4.4%.

Nissan said Friday it sold a total of 966,000 vehicles worldwide in the second quarter, up 2.7% from a year earlier. Vehicle sales in North America fell 3.5%, and 5.1% in the U.S. Production volumes in North America also retreated.

"The global financial and economic crisis has had a profound effect on every area of our industry, with the grip on credit and declining consumer confidence being the most damaging factors," said Nissan President and CEO Carlos Ghosn in a press release. "Since we see no relief in the second half, we are taking all necessary and responsible measures to protect the company and preserve our ability to rebound when conditions improve."

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