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Last Updated: Tuesday, 24 July 2007, 08:42 GMT 09:42 UK
Tough market trims Nissan profit
Customer looking at Nissan compact Lafesta mini-van in showroom
Nissan's sales have been lacklustre in recent months
Japanese carmaker Nissan has blamed rising taxes, higher raw material costs and a tough domestic market for a drop in profits in the April to June period.

Operating profits sank 3.2% to 148.4bn yen ($1.23bn; 597m) in the quarter. Net profit fell 16% to 92.3bn yen.

Nissan's results contrast sharply with forecasts for its rivals who have been buoyed by a weak yen and rising sales.

Japan's second-largest carmaker has been suffering in recent months, amid shrinking domestic sales.

Last month, chief executive Carlos Ghosn said none of the firm's senior executives would be paid bonuses this year after the carmaker suffered its first fall in profits in seven years.

In an effort to battle rising costs and lacklustre demand in its home market, Nissan has been cutting costs and developing new and redesigned vehicle models.

Looking ahead, the firm kept to its forecast to return to profit during the current financial year, forecasting annual operating profits of 800bn yen.

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