TOKYO, Feb 2 - Nissan Motor Co. reported a bigger-than-expected 16.6 percent drop in quar

TOKYO, Feb 2 (Reuters) - Nissan Motor Co. reported a bigger-than-expected 16.6 percent drop in quarterly operating profit, its fourth in a row, on a sluggish recovery in U.S. sales, and cut its full-year forecasts despite a sharp slide in the yen.

October-December operating profit at Nissan, 44 percent-owned by Renault SA, was 183.07 billion yen ($1.52 billion), below an average estimate of 218.7 billion yen in a Reuters Estimates survey of five brokerages.

Net profit fell 22.6 percent to 104.5 billion yen, compared with market estimates of 132.2 billion yen.

The maker of the 350Z sports car and Versa subcompact was overtaken by Honda Motor Co. as Japan's No. 2 carmaker by volume last year, as vehicle production dropped sharply amid a lack of new model launches.

Nissan cut its forecast for operating profit to 775 billion yen from 880 billion yen for the year to end-March while lowering its net profit forecast to 460 billion yen from 523 billion.

Even with the yen's slide against the dollar and euro -- good for Nissan when it brings home overseas earnings -- most analysts expect Nissan to miss its full-year profit targets and book its first earnings fall in seven years of Chief Executive Carlos Ghosn's leadership.

Nissan shares rose 8.3 percent in October-December, underperforming the transport sector subindex's ITEQP.17 percent gain. Toyota Motor Co. rose 24 percent and Honda 18 percent in the same period.

Nissan closed down 1.8 percent at 1,509 yen on Friday ahead of the results.

REUTERS CS ND1300