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Nissan reported a 22.6 per cent drop in net income in the third quarter of its 2006-07 financial year compared with the same period a year ago..

Income after tax in the quarter, from October to December 2006, totalled 104.4 billion yen (€720 million). Operating profit was 16.6 per cent down at €1.27 billion. Nissan sold 795,000 vehicles worldwide in the three month period, a drop of 3 per cent from the 2005 figure.

President and CEO Carlos Ghosn said: "Against an environment of high raw material and energy prices, no pricing power and continuing weakness in mature markets, our industry faced many headwinds. For the first time since 1999 risks outweighed opportunities."

For the first nine months of the financial year. Nissan's vehicle sales of 2,504,000 are 5.7 per cent down onm the equivalent period a year ago, with declines in the mature markets of Japan, Europe and North America.

Nissan revised its full-year projected operating profit and net income forecast to €5.37 billion and €3.19 billion respectively.

The company introduced six new models during the run-up to the end of the calendar year, including the Altima, Livina Geniss and Infiniti G35. It plans a further 11 new models this coming year.

Ghosn said the group was on course for the projected 4.2 million sales in the 2008 financial year. It intends to release further details of its "Value-Up" progranmme when the full-year results are unveiled at the end of April.