Nissan has cut its full-year profit forecast as a safety inspection scandal hit earnings.

Japan’s second-largest auto maker expects operating profit of 645 billion yen ($5.7 billion) for the year to March 2018, down from previous guidance of 685 billion yen.

Nissan also saw a sharp drop in operating profit for Q3 of 2017 owing to weakness in the US.

The company recalled 1.2 million cars in the domestic market in October after flaws in safety checks were discovered.

At a media briefing in Yokohama on November 7, Nissan CEO Hiroto Saikawa gave a long bow of apology and vowed to “regain the trust” in the wake of the scandal.

He said: “I would like to express my apologies to customers, business partners, dealers and all the people who have been supporting Nissan.”

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Nissan suspended local production for about three weeks after it revealed uncertified workers carried out final vehicle inspection checks for decades. On November 7, the company resumed production at all six of its domestic assembly plants.

The saga is the latest in a string of misconduct cases involving Japanese manufacturers, including a data falsification scandal at Kobe Steel.

In 2016, Mitsubishi Motors admitted that it had falsified fuel efficiency tests on some models.

While costs related to safety scandal are expected to hit Nissan’s annual profit, other headwinds weighed on its quarterly earnings.

Operating profit fell to 128.5 billion yen for the three months to September, down from 163.9 billion a year earlier.

The result, which missed market expectations, came as sales fell 2.2% in the increasingly competitive US market.

On November 7, Toyota – Japan’s largest auto maker – said its sales in North America hit their lowest level in nearly three years.

However, Nissan fared better closer to home. Sales rose 8% in China, the world’s biggest car market, and jumped 25.6% in Japan over the quarter.