YOKOHAMA ¨C Nissan Motor Co. announced Thursday that it forecasts a 19 percent profit drop for the current business year through March 2018, echoing gloomy forecasts given earlier by two other Japanese auto giants ¡ª Toyota Motor Corp. and Honda Motor Co.

Nissan said it estimates a ?535 billion net profit for the business year running from April 1, down 19.4 percent on year. It also said operating profit would drop 7.7 percent to ?685 billion, despite a 0.7 percent rise in sales.

The automaker said the forecasts are due to an expected increase in material costs and negative impacts from fluctuations in foreign exchange rates.

The company also announced its annual net profit for the 2016 fiscal year that ended in March, which came to ?663 billion, up 26.7 percent on year. Operating profit fell 6.4 percent to ?742 billion.

Sales for the business year also declined 3.9 percent to ?11.72 trillion ¡ª the first decline since the 2009 business year.

Nissan said the declines in operating profit were mostly due to a strong yen. It said the annual operating profit for fiscal 2016 would be ?1.02 trillion, or up 29.1 percent, if the impact of the currency exchange is excluded.

Despite declines in earnings, Nissan said worldwide consolidated unit sales picked up 3.7 percent to 5.63 million vehicles in 2016, pulled by surges in China, North America and Europe. But the figure dropped in Japan by 2.6 percent from a year earlier, due to suspended sales of its lightweight Dayz and Dayz Roox models in April. Sales resumed in July.

Nissan President and CEO Hiroto Saikawa said he expected a tougher battle in the U.S. market as it ¡°shows signs of decline¡± amid slowing demand. The company said U.S. demand of automobiles in the previous business year declined 0.7 percent on-year.

¡°It is our significant challenge to increase our brand value¡± in the U.S., Saikawa said at a news conference held at the company¡¯s headquarters in Yokohama.

Saikawa assumed Nissan¡¯s top post in April after charismatic leader Carlos Ghosn stepped down as CEO to become chairman.

Nissan¡¯s dire forecast is yet another example of Japanese automakers struggling with the recent surge in the yen amid uncertainties in global politics stemming from the rise of protectionism in the U.S. and Britain.

Toyota announced Wednesday that its net profit for the fiscal year that ended in March dropped 20.8 percent to ?1.83 trillion and expects a further decline in earnings.

Honda also forecasts a 14 percent drop in net profit for the current business year through March 2018, although its net profit in fiscal 2016 surged 79 percent on year to ?617 billion thanks to cost-cutting efforts.