Nidec Corp. released its second-quarter results on Monday, showcasing a decrease in net profit. Here’s a breakdown of the key details:
Nidec’s net profit for the three months ended September 30th dropped by 7.3% compared to the previous year, amounting to 42.04 billion yen ($280.6 million). Despite this decline, the company surpassed analysts’ estimates, which predicted a net profit of Y36.63 billion.
Second-quarter revenue experienced a slight increase of 0.7%, reaching Y594.61 billion. However, this fell short of the estimated figure of Y649.09 billion.
Despite already achieving almost two-thirds of its projected net profit for the entire fiscal year, Nidec maintained its earnings forecasts for the fiscal year ending March 2024. The company anticipates a 1.9% decline in revenue to Y2.200 trillion and a more than tripled net profit of Y165.00 billion for this fiscal year. Nidec acknowledges that it may take longer for the demand for information technology equipment and household appliances to fully recover.
Nidec revised its sales forecast for electric-vehicle traction motors for this fiscal year, lowering it from 545,000 units to 350,000 units. The company also adjusted its revenue estimate for this business segment to Y48.9 billion, down from the previously projected Y78.1 billion.
Thanks to cost-cutting measures, Nidec witnessed an improvement in its second-quarter operating profit margin, rising from 8.8% to 9.4% compared to the same period last year.