Japan's third largest car maker, Nissan Motor, has reported a sharp and unexpected rise in profits.

Mr Ghosn: "We have been laying the groundwork for growth"

Net profits rose 24%, and operating profits rose 84% to a new record high, during the six months to September, according to preliminary figures published a month ahead of their official release.

"This is a huge surprise. Nobody could have expected such a big upward revision," said Shigeharu Kimishima at Mitsubishi Securities.

Nissan Motor said operating profits rose to 348bn yen (�1.8bn; $2.8bn) and added that its full year result should set yet another record.

Net profits rose to 286bn while sales rose 10%.

Growth ahead

For the year as a whole, Nissan predicted that its operating profits should rise 30% to 720bn yen, sharply above analysts' predictions of 580bn yen.

"Record profits are attributed to a combination of higher volumes from new products, more efficient operations and lower purchasing costs," said Nissan president and chief executive Carlos Ghosn.

"We have been tenaciously laying the groundwork for growth, and today we see that growth is here in a very challenging global market."

Key to this are Nissan's speedy launch of new models. The auto firm is launching a new car every month on average this year.

Strong shares

Ahead of the announcement, which was made after the markets closed in Japan, Nissan's shares gained 2.3%.

So far this year, Nissan stock has gained about 30%.

Nissan's partner Renault, which owns 44% of the Japanese car maker, gained 5.68% in early trading.

Its shares were lifted by Nissan's strength.

Mr Ghosn is due to take over at the helm of Renault when president and chief executive Louis Schweitzer steps down in 2005.

He will then be in charge of both Nissan and Renault.