Nissan hit by earthquake effect

Car manufacturer Nissan has suffered a huge decline in quarterly profits due to the impact of Japan's earthquake and tsunami on production and dealerships.

In its financial report for the April-June period, the firm posted a 20% year-on-year fall in net profit to 85 billion yen (£665 million). An increase in material costs and a soaring yen also contributed to the decline.

The magnitude-9.0 earthquake and tsunami that hit the island country in March this year led to parts supply shortages, disrupting production for all Japanese car makers.

Despite the setback, Nissan - which produces the Leaf electric car and Infiniti luxury models - is managing to hold its global market position, according to chief executive Carlos Ghosn.

He added the company is recovering faster compared with other car manufacturers affected by the natural disasters.

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