Nissan shares fall 11 percent

Shares of Japanese car maker Nissan fell 11% to 850 yen in early trade in Tokyo after the firm cut its full-year profit forecast. On Friday, the firm said it expected to make a profit of 355 billion yen ($3.6 billion; £2.2 billion) for the year to March 31, 2014, down from an earlier forecast of 420 billion.

Nissan said tough conditions Europe and recent recalls had hurt its earnings. It added that demand in emerging markets had been "volatile".

Japan's share market was closed on Monday. Analysts said that investors were worried about the short term prospects of the firm.

"There are a few segmental trends which don't favour Nissan," said motor sector analyst at the consulting firm Frost and Sullivan, Vivek Vaidya.

"Large pick-up segment in the US is on the rise where Nissan is not a leading player, emerging markets such as India are slowing down, currency fluctuations are eating into their profit and electric vehicles segment hasn't yet taken off," he said.

The cut in the forecast came despite the company posting a 6.5% jump in profit for the July-to-September quarter, from a year earlier. It reported a net profit of 189.8 billion yen for the period.

A Nissan spokesman said that changes to its senior management were "designed to enhance Nissan's performance and ensure the company delivers the 8% operating profit margin target set out in the Power 88 mid-term plan".

Under the changes, Nissan's chief operating officer (COO), Toshiyuki Shiga, will become a vice chairman with responsibility for external affairs, asset management and corporate governance. The office and functions of the COO will be reorganised among three senior executives, he said.

BBC