Nissan Motor reported that group net profit for the first fisal year quarter to 30 June dropped 15% year on year despite record car sales worldwide. The strong yen and increased sales expenses reduced the profit.

Net profit was JPY72.28bn after sales rose 14.6% to 1.21m vehicles. Nissan said its global market share grew 0.4% to 5.9%, Kyodo News reported.

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Group operating profit fell 19.7% to JPY120.68bn on consolidated sales of JPY2.14 trillion, up 2.6%.

Despite falls in the group net and operating profits, the automaker left unchanged its group earnings projection for the full year ending 31 March, as it plans to release new vehicle models later this business year, the company said.

With the introduction of new models such as the Altima sedan and selling them at appropriate prices, “We will increase sales volume and secure more profits,” corporate vice president Joji Tagawa said at a news conference in Yokohama.

“We also plan to promote various activities such as thorough cost management in order to offset effects of the strong yen,” Tagawa said, adding that the company expects to achieve its annual target based on an exchange rate assumption it has set earlier.

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For the full year, it expects group net profit of JPY400bn, up 17.2%, operating profit of JPY700bnn yen, up 28.2%, and sales up 9.5% to JPY10.3 trillion.

Nissan said the strong yen pushed down its Q1 group operating profit by JPY25.7bn while increased selling expenses in North America before the launch of new models dragged down profit by JPY76.4bn.

There was also harsh price competition with rivals as their vehicle supplies have returned to normal following the 2011 natural disaster in Japan, Nissan said.