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INTERVIEW-Nissan right on track for profitable growth -CFO

By Chang-Ran Kim and Dan Sloan

TOKYO, Nov 26 (Reuters) - These days it's hard to find an analyst with a bad word to say about Nissan Motor Co , Japan's third-largest automaker.

For two years running, Nissan has beat the most bullish profit forecasts presented by brokerage analysts and it continues to set what many consider to be ambitious medium-term targets.

That may be why Thierry Moulonguet, Nissan's chief financial officer, is brimming with confidence even when contemplating a possible slowdown in U.S. demand -- a factor that carmakers all over the world have identified as a major risk factor this year.

Clearly, business in the U.S. was slowing down a little, Moulonguet, a former executive at French partner Renault SA , told Reuters in an interview on Tuesday.

"But when I look at all the forecasts and economic studies, and the recent statement by (Federal Reserve Chairman Alan) Greenspan on the outlook for the economy, I don't think that we are heading to anything dramatic.

"We really are confident that our products will continue to increase our volume and market share in the U.S.," he added.

Last month, Nissan announced a surprising 84 percent jump in half-year operating profit to 348 billion yen ($2.85 billion), thanks mainly to stellar growth in North America.

And true to its motto of "growth with profit", Nissan's operating margin rose to 10.6 percent -- the best in the industry -- thanks largely to a successful alliance with Renault.

Moulonguet said the two were already in a position to draw maximum benefit from their alliance and could do so without the need to increase their mutual equity stakes.

Renault currently owns 44.4 percent of Nissan, while the Japanese automaker has a 15 percent stake in its partner.

WINNING STOCK

Driven by 12 all-new models this business year including the March subcompact in Japan and Murano sport utility in the United States, Nissan has forecast a full-year operating profit of 720 billion yen. That would make it a bigger profit-earner than Honda Motor Co , Japan's second-largest automaker.

Even in terms of global volume, Nissan is close on the heels of Honda, forecasting sales of 2.839 million vehicles against its rival's 2.89 million.

But Moulonguet, a financial expert who spent 15 years at France's Finance Ministry before joining Renault, said ranking was not on Nissan's mind as it worked to expand its income.

"This is not the issue for us. The issue is to continue on the path of profitable growth."

Indeed, Nissan's management has repeatedly stated this as the company's ultimate goal, and that commitment is what many believe has led to a surge in Nissan's share price.

While both Toyota Motor Corp and Honda have seen their share prices drop this year, Nissan's is up nearly 40 percent, boosted recently by the company's announcement that it would aim to triple its annual dividend to 24 yen by fiscal 2004.

Moulonguet said that decision was a statement of Nissan's confidence in generating a good level of profit in the coming years -- a promise that most industry watchers are, at least for now, unwilling to bet against.

($1=122.06 Yen)