Nissan Motor Co on Tuesday revised down its earnings forecast for fiscal 2012 amid declining sales in China in the wake of territo rial dispute with China over a set of islands in the East China Sea.

For the business year ending March 31, Nissan expects to see a group net profit of 320 billion yen ($3.99 billion) and a consolidated operating profit of 575 billion yen, compared with earlier projections of 400 billion yen and 700 billion yen, respectively.

The company forecast sales of 9.82 trillion yen, compared with prediction of 10.3 trillion yen in July.