By Kosaku Narioka
Nidec Corp. reported its second-quarter results on Monday. Here’s what you need to know.
NET PROFIT: Nidec’s net profit dropped 7.3% from a year earlier to 42.04 billion yen ($280.6 million) for the three months ended Sept. 30. That beat the estimate of Y36.63 billion in a poll of analysts by FactSet.
REVENUE: Second-quarter revenue increased 0.7% to Y594.61 billion. That missed the estimate of Y649.09 billion in the FactSet poll.
WHAT WE WATCHED:
–GUIDANCE: Nidec maintained its earnings forecasts for the fiscal year ending March 2024, even though by the end of its first half it has already generated nearly two-thirds of net profit projected for the entire fiscal year. Nidec continues to expect revenue will decline 1.9% to Y2.200 trillion and net profit will more than triple to Y165.00 billion this fiscal year. The company said it might take longer for demand for information-technology equipment and household appliances to fully recover.
–EV MOTORS: Nidec cut its sales forecast for its electric-vehicle traction motors to 350,000 units this fiscal year from its previous view of 545,000 units. It also lowered its revenue estimate for the business to Y48.9 billion this fiscal year from Y78.1 billion previously projected.
–MARGIN: Second-quarter operating profit margin improved to 9.4% from 8.8% a year earlier thanks to cost cuts.
Write to Kosaku Narioka at [email protected]
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