Nissan has forecast operating profit for the current fiscal year that exceeded analyst projections, as the carmaker gets costs under control while expanding output, thanks to improving supplies of semiconductors.

Operating profit will be ¥520 billion ($3.9 billion) for the period through March 2024, the Yokohama-based company said Thursday. That compares with the average estimate for ¥402.8 billion. Sales should be ¥12.4 trillion, more than the ¥11.2 trillion the market is looking for.

Nissan embarked on a cost-cutting plan three years ago and shifted its focus toward making more money from each car it sells, departing from the high-volume strategy embraced by former Chairman Carlos Ghosn. The question now is whether the auto manufacturer can expand production and profitability while rolling out new electric vehicles, especially for buyers in China and the United States.