*

Sees FY operating profit of 600 bln yen vs forecast 577

bln

*

Sees 7.5% rise in global retail sales, China up just 0.8%

*

Q4 operating profit 90.3 mln yen vs forecast 118.2 bln

(Adds vehicle sales forecasts, background on Chinese business

throughout)

By Daniel Leussink

TOKYO, May 9 (Reuters) - Japan's Nissan Motor ( NSANF )

expects to beat analyst estimates with a 5.5% rise in operating

profit this fiscal year on higher global sales, it said on

Thursday, while warning that intense competition and challenges

from inflation would continue.

The Yokohama-based automaker expects only a small rise in

vehicle sales in China, highlighting the difficulties it faces

in the world's top auto market, while counting on strong growth

in North America to lift its performance.

Nissan ( NSANF ) sees operating profit coming in at 600 billion yen

($3.85 billion) in the year that started on April 1, compared

with the 577.3 billion yen average estimate from 18 analysts

surveyed by LSEG.

It also expects foreign exchange moves to boost its annual

results, helping to offset inflationary pressures.

Operating profit for the three months ended March 31 came to

90.3 billion yen, far short of the average estimate of 118.2

billion yen from eight analysts surveyed by LSEG.

Nissan ( NSANF ) forecast global retail sales this financial year at

3.7 million vehicles, up 7.5% from the 3.4 million sold last

fiscal year.

The forecast includes an expected 13.3% rise in North

American sales to 1.4 million vehicles.

In China, Nissan ( NSANF ) sees an increase of just 0.8%, after sales

slumped 24% last financial year to just below 800,000.

Japanese car brands such as Nissan ( NSANF ) and Honda Motor ( HMC )

have lost market share in China to fast-moving local rivals that

have attracted drivers with an array of cheap, software-loaded

electric vehicles.

At last month's Beijing auto show, Nissan ( NSANF ) showed off four

concept models for the Chinese market and unveiled a memorandum

of understanding with Baidu ( BIDU ) to conduct research on

artificial intelligence and so-called "smart cars".

Nissan ( NSANF ) also said it would invest in Kasai, a manufacturer of

car interior products such as trim parts by acquiring 6 billion

yen of newly issued shares, pending regulatory approvals.

In April, Nissan ( NSANF ) slashed its annual operating profit

estimate for the year that just ended by 14.5% on

lower-than-expected vehicle sales.

($1 = 155.8000 yen)