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Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:

Nissan 2nd-Quarter Profit Unexpectedly Rises 31% [Bloomberg]

Summary: Nissan benefited from its sale of Nissan Diesel and a weaker yen (it makes as much as 60% of annual profit in the U.S.), which helped its Q2 net income jump 31% y-o-y to 164 billion yen ($1.4b), or 39.75 yen a share, versus 125 billion yen, or 30.51 yen, last year -- beating four analysts polled by Bloomberg with a median estimate of 111.8 billion yen ($940m). Its Q2 sales were off 1.3% to 2.32 trillion yen ($19.5b). A Credit Suisse analyst comments, "Nissan has been very fortunate to have the weaker yen help offset the sales drop," in response to its forex gain of 5.4 billion yen ($45m), versus its 22.5 billion yen forex loss last year. Nissan is maintaining full-year (ending March '07) guidance for net income of 523 billion yen ($4.4b), +0.9% y-o-y, on sales of 10 trillion yen ($84b), +7% y-o-y, and overall unit sales of 3.73 million autos, +4.5% y-o-y. Its Q2 sales were 7.6% lower to 883 thousand units, falling 17% domestically, -9.8% in the U.S. and -2.1% in Europe. Nissan is set to several new or remodeled autos over the next several months, which is expected to curb its sales decline.
Related links: Nissan Earnings Press Release, IR Earnings Materials • Earnings coverage: Forbes.com AP, Reuters • IHT.com AP: Ghosn says company in no rush to find alliance partners • Reuters: Nissan US sales on track for Oct double-digit rise • Business Week: Don't Write Off Nissan YetTalks Between GM, Renault and Nissan FailWhy Japanese Cars Earn $2400 More Profit EachJapan's Big-3 Auto to Further Expand Fuel EfficiencyJapanese Auto Industry Struggles Continue, But Mini-cars RuleNissan Salvages Q1, All Eyes on 2H
Potentially impacted stocks and ETFs: Nissan (OTCPK:NSANY), Honda (HMC) - reported earnings yesterday, Toyota (TM) reports Nov. 7th, Daimler Chrysler (DCX) - reported yesterday [CC transcript], Ford (F) - reported Tuesday [CC transcript], General Motors (GM) - reported yesterday [CC transcript]

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Source: Nissan's Earnings Surprise to Upside; Sales Hurt Again by Lack of New Models