NISSAN's workforce in the North-East received a massive boost last night as the Japanese car giant reported a return to profit for the first time in three years.

The company, which employs more than 5,000 staff at its plant in Sunderland, reported a profit after tax of £1.8bn, in stark contrast to its £4.5m loss last year.

Carlos Ghosn, Nissan Motor Company president, said: "Nissan is back. The revival plan has produced the best financial performance in the company's history, as far as we can reliably trace it.

"We have moved from the emergency room to the recovery room. We are as passionate about our current achievements as we are about our future goals."

However, Mr Ghosn said further worldwide economic slowdown was a threat to the world's auto industry in the coming year, although he believed Nissan's continued revival plan would help it through tough conditions.

Nissan sold 2.632m cars during the last year, four per cent more than previously.

Globally, volume increased in all major markets, except back home in Japan, where Nissan sold 733,000 fewer cars than the previous year.

Sales in Europe increased by 3.5 per cent, and by 5.3 per cent in the US and Canada.

Mr Ghosn predicted that Nissan would eliminate its global debt of £2.3bn and be selling one million more cars a year by 2005.

"We have more than tripled operating profits and cut debt to the lowest level in 15 years. The Nissan Revival Plan is fully engaged and the people at Nissan are stimulated and driven by the results they have delivered."