By Chang-Ran Kim
YOKOHAMA, Japan (Reuters) - Nissan Motor Co (T:7201), Japan's second-biggest automaker, said it expects operating profit to climb 15 percent this financial year, forecasting vehicle sales growth in most regions and promising large cost cuts.
That follows robust earnings in the year just ended thanks to big currency gains and the popularity of its Rogue crossover SUV and other models in the United States.
It predicted currencies will work against it this year but plans to beat expected flat industry-wide vehicles sales with growth of around 5-6 percent in China, the United States and Europe. Cost cuts are set to add a hefty 110 billion yen (587 million pounds) to profit.
Nissan, 43.4 percent owned by France's Renault SA (PA:RENA), forecast operating profit of 675 billion yen - 2 percent less than a market consensus estimate, due in part to the automaker's conservative exchange rate assumptions.
Chief Executive Carlos Ghosn noted that sales were slumping in Brazil and Russia, while in China demand would be driven increasingly by price cuts.
Worries about price competition in the Chinese auto market - Nissan's second-biggest after the United States - have increased after General Motors Co (N:GM) cut vehicle prices on 40 models.
"Are we worried about China? If it's relative to the market evolution, no," Ghosn told a news conference, noting that retail sales of passenger cars in China remained strong. Industry-wide growth in the four months to April grew 12 percent over the year-earlier period, while Nissan outperformed with 20 percent growth, he said.
Ghosn, however, remained mostly silent on a new headache - the French government's move to raise its holding in Renault to gain a bigger say in its management and which he has said threatens the balance of the Nissan-Renault alliance.
Legislation introduced under France's socialist government doubles the voting rights of longer-term shareholders in companies that do not explicitly opt out by a two-thirds majority vote. An opt-out resolution proposed by Ghosn, who also leads Renault, failed to gain the necessary votes last month after France raised its stake to 19.7 percent from 15 percent.
Sources have said that Nissan representatives on the Renault board have warned the Japanese automaker could be forced to take steps to increase its influence.
"There is nothing more to add," Ghosn said. "In a certain way, this is, for the moment, much more a Renault issue and Nissan is supporting Renault in this situation."
Operating profit in the year just ended jumped 18 percent, but in the final quarter it fell 13 percent to 171.6 billion yen - short of analysts' estimates - as the company adjusted for accounting changes.
