Nissan reported a surprise 22.6% slump in profits yesterday for the last quarter of 2006. The Japanese carmaker, in which Renault has a 44% stake, blamed the poor results on rising commodity costs, fierce competition and stagnant sales. Renault shares fell more than 4% in response. Nissan has also cut its profit forecast for this fiscal year by 12% to ¥460bn (£1.93bn), which would be the company's first annual fall in profits for seven years. Nissan's fortunes contrast with those of Toyota, which is enjoying record earnings after gaining a foothold in the US market.