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Uncertainty clouds profit at Nissan & Hyundai
Added Time:[2010/8/2 13:16:59]

NISSAN Motor Co and Hyundai Motor Co's forecast-beating quarterly profits may prove tough to beat in the second half as robust sales in China and elsewhere start to slow.

A patchy recovery in the United States has become one of the biggest concerns for the auto industry, especially Japanese car makers, which rely heavily on the region for its profits.

Nissan, Japan's third-largest car maker, reported its strongest quarterly operating profit in more than two years as sales surged, but it left its cautious guidance unchanged amid an increasingly murky outlook for demand.

Hyundai, the world's No.5 car maker with affiliate Kia Motors Corp, beat forecasts with a record quarterly profit, helped by strong sales of models such as the Sonata sedan and Santa Fe sports utility, and weakness in the Korean won.

South Korea's top auto maker plans to launch a revamped version of its best-selling compact car Elantra in August and the Azera sedan later this year.

"The launch of new models will only have a limited effect in the short term, and we cannot see it as a solution for worsening demand," said Jung Sangjin, an asset manager at Dongbu Securities in Seoul.

Nissan, held 43 percent by France's Renault SA, has outperformed the industry's growth especially in China, the world's biggest market, so far this year.

Nissan is also 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 others including the much-hyped Leaf electric car.

"First-quarter results for Nissan are good and our recovery is vigorous and ahead of schedule," CEO Carlos Ghosn said. "Despite uncertainty surrounding the ongoing global economic recovery, raw material costs and exchange rate volatility, we are confident to achieve our 2010/11 forecast."