Nissan Motor Co. Ltd. should achieve its profit forecast for 2004, even though certain costs are rising.

CEO Carlos Ghosn tells Reuters the auto maker is on track financially, but cautions “we have to recognize that a lot of the risks that we listed in the beginning of the year are materializing.”

Those risks included rising steel and oil prices, as well as an up-tick in incentives and interest rates in the U.S.

Nissan forecast an operating profit of $7.84 billion for fiscal 2004, which ends March 31. The target is a 4.3% hike over last year’s profit.

Nissan is continuing its new product onslaught, launching its third vehicle in Japan in two months, the Fuga luxury sport sedan, sales of which are forecast at 2,000 units per month.

Equipped with either a 2.5L or 3.5L V-6 engine, the model will range from ¥3,412,500 ($31,292) to ¥4,935,000 ($45,251).

Fuga will be sold in North America as the Infiniti M35 and M45. It goes on sale this spring.