Nissan Motor Company posted a smaller-than-expected 4.9 per cent drop in quarterly operating profit as an ageing product line hit global sales.
July to September operating profit was 195.3 billion yen, compared with a mean estimate of 189.15 billion yen.
Net profit rose 31.2 per cent to 164 billion yen, helped by extraordinary gains from the sale of shares in Nissan Diesel Motor to Volvo.
A dearth of new models, especially in its main US market, has seen Nissan's global output slip every month this year, putting it at risk of being overtaken by Honda Motor as Japan's second-biggest auto maker.
Carlos Ghosn, chief executive of both Nissan and Renault - Nissan is 44 per cent-owned by the French carmaker - has promised a sales comeback in the current second half as Nissan floods the global market with eight all-new models.
Nissan kept unchanged its forecast for the year to end-March, predicting net profit of 523 billion yen, up about 1 per cent from 2005/06.
Nissan shares gained 5.8 per cent in July-September, slightly underperforming a 6.9 per cent rise in the transport sector subindex.