This Feb. 13, 2020 file photo shows logos of Nissan Motor Co. at the carmaker's global headquarters in Yokohama. (Mainichi)

       TOKYO (Kyodo) -- Nissan Motor Co. raised on Tuesday its net profit outlook for the business year to March to 180 billion yen ($1.6 billion), triple the previous estimate due to a weaker yen, even though the company sharply cut its global sales target due to a global chip crunch.

       Japan's No. 3 automaker by volume expects to return to profitability after two straight years of massive losses, shifting from an expansionist policy pursued under ousted former Chairman Carlos Ghosn.

       Operating profit is now forecast at 180 billion yen, up from 150 billion yen projected earlier and also improving sharply from the previous year's loss. Sales are expected to rise 11.9 percent to 8.8 trillion yen, although they are revised down from the previous estimate of 9.75 trillion yen.

       Nissan downgraded its global sales target to 3.8 million vehicles from its earlier target of 4.4 million, hurt by production cuts caused by semiconductor shortages.

       "We see the semiconductor shortage impact to the automotive industry has been larger than anticipated," Nissan Chief Operating Officer Ashwani Gupta told an earnings briefing.

       The rate of decline in revenue is less than that in sales volume, Gupta said, adding, "This means our shift from volume to value is translating into improvement in operating profit and net income."

       Nissan has been seeking to become leaner by cutting costs and reducing output capacity and the vehicle lineup, shifting its focus from chasing higher sales volumes.

       Semiconductor shortages have clouded the outlook for the auto industry, which had been emerging from the depths of the COVID-19 pandemic as auto demand recovered in major markets like the United States and China.

       A weaker yen is proving a boon to automakers as their overseas profits are boosted when repatriated, but surging raw material costs are raising concern about worsening of profitability.

       Nissan revised the full-year forecast based on the assumption that the U.S. dollar will trade at 110 yen, up from 108 yen in its previous estimate.

       For the first half to September, Nissan swung to the black for the first time in two years with a net profit of 168.65 billion yen, an improvement from a massive 329.96 billion yen net loss a year earlier.

       Operating profit came to 139.13 billion yen, which compares with a 158.76 billion yen loss, while sales rose 27.6 percent to 3.95 trillion yen.

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