Nissan returns to profit despite 'crisis mode'

Japanese carmaker Nissan has reported a return to annual profit after cutting fourth quarter losses.

In the January to March period, losses shrank to 11.6bn yen ($125m; £0.8m) from 276.9bn yen a year ago, helped by cost-cutting and strong sales in China.

It means Nissan returned to profit for the year, reporting an annual profit of 42.4bn yen, against 233.7bn last time.

"Though we are still... in crisis mode, Nissan is well on track toward complete recovery," said president Carlos Ghosn.

"A year ago I said Nissan knows how to adapt and face a crisis. Today you can see how we have progressed and where we are headed.

"We will emerge from this crisis more competitive and stronger," said Mr Ghosn, who also heads Renault, which owns 44% of Nissan.

Nissan is banking on the success in Europe and the US of its Leaf all-electric model, which the company hopes will be more attractive to buyers than petrol-electric hybrids offered by Toyota and Honda.

Last month, Nissan and Renault announced a partnership with Germany's Daimler to share technology.

Nissan sold 3.5 million vehicles in the year to 31 March. Sales were down in North America and Europe but recovered in Japan. In China, sales jumped 39% to 756,000 vehicles.

The company said it planned to sell about 3.8 million vehicles worldwide for the fiscal year to next March, up 8.1% on the previous year.

Both Toyota and Honda have also reported improved profit figures for their fourth quarters, underlining a widespread view that the automotive industry is recovering from recession.