Nissan has shifted its focus from "volume to value", shedding the emphasis on big sales numbers, often at discounts, that it pursued for years before the ouster of former boss Carlos Ghosn. The company is now aiming at higher sales margins while holding down costs.

On Thursday it reported swinging to a fourth-quarter profit but said it expected just 1% growth in operating profit for this year, missing expectations.

Shares were down 3.5% in morning trade after earlier sliding 6.3%.

Companies around the world are warning about declining profitability as they cannot fully pass on soaring input costs to consumers and are bracing for more supply chain hold-ups following the Ukraine conflict and prolonged COVID lockdowns in China.

Bigger rival Toyota Motor this week said uprecedented rises in raw material costs could slice a fifth off its full-year profit.

The supply chain has become a challenge for the industry as manufacturers' assumptions can be quickly changed by real-time events, Nissan Chief Executive Officer Makoto Uchida told Reuters in an interview.

The "uncertain situation" around the supply chain - including measures to control COVID-19 in China - is the biggest risk on the horizon, Uchida said.

(Reporting by David Dolan; Editing by Bradley Perrett)