Nissan posts lower Q1 profit, misses estimate

Nissan Motor Co. on Thursday posted a bigger-than-expected drop in its first-quarter operating profit as higher expenses offset a rise in global vehicle sales.

Japan's No. 2 automaker by car sales posted an operating profit of 153.3 billion yen ($1.38 billion) in April-June, down 12.8 percent from 175.83 billion yen a year ago. That compared with an average estimate for 171.45 billion yen from six analysts polled by Thomson Reuters I/B/E/S.

Nissan maintained its forecast for operating profit in the year to March at 685.0 billion yen, down 7.7 percent from last year and below analyst forecasts for 733.23 billion yen.

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The company has said it expects higher raw material costs and a minor negative currency impact to weigh on operating profit this year. ($1 = 111.2000 yen)