The new chief executive of Yahoo has said he is working on a 'strategic plan' for the firm.

His remarks came after Yahoo reported a sixth quarterly profit fall.

Earnings for the past three months to the end of June fell to $161 million (£78.6 million), down from $164m last year.

The decline was in line with Yahoo's recent lowered forecast, blaming weak display advertising revenue.

It also cut full-year income forecasts by up to $200 million in a sign that sluggish trading would continue.

Shares in the internet giant declined almost four per cent after trading in New York had finished - a sign that they could open lower when Wall Street begins trading on Wednesday.

The value of Yahoo's shares has fallen by about 30 per cent since the beginning of 2006, reflecting its struggle to compete against rival Google for the online search market.

It has also lost advertising display sales as corporate brands discover the benefits of using online social websites, such as Facebook.

But hopes are high that a new management team, led by co-founder Jerry Yang, will revive the flagging fortunes of the company, which has been criticised recently for lacking innovative ideas and relevance.

Under his leadership, Yahoo has already announced the purchase of a sports website Rivals.com and said it would overhaul of the way it sells advertising in the US, integrating its display and web search advertising operations.

'I intend to spend the next 100 days or so focused on mapping out a strategic plan,' Yang said.

'I may not have the answers, as of today, but I have a pretty strong idea of where I want to go.'