NISSAN Motor Co's first-quarter profit has fallen more than analysts estimated as the yen gained and the faltering United States economy triggered a writedown in the value of leased cars.

Net income dropped 43 percent to 52.8 billion yen (US$491 million) for the three months ending in June, from 92.3 billion yen a year earlier, Tokyo-based Nissan said in a statement yesterday.

Nissan shares fell 3 percent in early German trading yesterday, Bloomberg News reported.

Japan's third-largest auto maker cut the estimated resale value of leased vehicles in the US by 42 billion yen as the US$4-a-gallon gasoline and a slumping housing market eroded demand for trucks and sport utility vehicles.

Chief Executive Officer Carlos Ghosn is axing jobs and reducing production in North America, Nissan's biggest market, and turning to China and Russia for growth.

'A recovery in the North American market looks far off,' said Yuuki Sakurai, a Tokyo-based general manager at Fukoku Mutual Life Insurance Co, which manages about US$54 billion.

Sales at Nissan fell 4.1 percent to 2.35 trillion yen. Earnings a share dropped to 12.96 yen from 22.39 yen a year earlier.

Nissan's writedown follows a similar US$2.1 billion charge at Ford Motor Co. Honda Motor Co cut the estimated value of its leased Fits, Civics and other vehicles by 25 billion yen. Nissan's charge covers a three-year period through 2010.

Bayerische Motoren Werke AG, the world's largest maker of luxury vehicles, also more than doubled provisions for risks including bad debts and falling leased-vehicle prices to 695 million euros (US$1.08 billion) as it reported earnings yesterday.