Nissan’s net income drops 23% in quarter

Nissan Motor Co. cut its annual profit forecast to the first decline in seven years and said quarterly earnings fell 23% on higher raw-material costs and a lack of new models.

The automaker’s net income dropped to 104.4 billion yen ($865 million), or 25.29 yen a share, in its fiscal third quarter that ended Dec. 31. Sales rose 1.8% to 2.34 trillion yen.

Nissan, which passed Honda Motor Co. as Japan’s second-biggest carmaker last year, said it would miss its vehicle sales target this year after introducing only one new model in the first half.