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Nissan sales slide, profits rise

Nissan Motors has announced a profit rise of 31% in the July-September quarter, despite a slide in sales.

Net income rose to 164 billion yen (£733 million) in the period, from 125 billion yen (£558 million) a year earlier, the Tokyo-based company said In a release. But sales slid 0.9% to 2.324 trillion yen (£10.4 billion).

The number of vehicles sold in the company's second fiscal quarter dropped 7.6% to 883,000 units as Nissan struggled to win customers with a fleet of aging model offerings.

The company also warned that risks to future earnings include toughening global competition, spiraling commodity prices and high energy prices, although it said a favorable exchange rate of the yen weakening against the dollar will help balance the risks.

President and chief executive Carlos Ghosn said he has obligations to stockholders to consider partnerships, but said it was a matter of how much value the alliance could create.

"We have no need to find new partners," Ghosn said. "We are in no rush to find new partners."

He was referring to a failure of three way talks with Renault for an alliance with General Motors recently.

Nissan kept its full-year profit forecast unchanged at 523 billion yen (£2.3 billion).

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