Japan`s Nissan Motor Co. reported Friday a 40.5 percent slump in half-year net profits and predicted annual earnings would plunge by two-thirds due to weak global markets and a strong yen.

Nissan posted a net profit of 126.34 billion yen (1.3 billion dollars) for the six months to September, down from 212.42 billion the previous year.

Japan`s number three automaker now expects a net profit of 160 billion yen for the full financial year to March, down from 482.26 billion a year earlier and well short of an earlier forecast of 340 billion yen.