By Kosaku Narioka
Nidec is scheduled to report second-quarter results on Monday. Here is what you need to know:
NET PROFIT FORECAST: Nidec is expected to report a 19% drop in net profit to 36.63 billion yen ($244.6 million) for the quarter ended Sept. 30, according to a poll of analysts by FactSet. That would compare with net profit of Y45.33 billion a year earlier.
REVENUE FORECAST: Second-quarter revenue is estimated to have risen 9.9% to Y649.09 billion, according to the FactSet poll.
WHAT TO WATCH:
–EV MOTORS: In July, Nidec cut its sales forecast for its electric-vehicle traction motors to 545,000 units for the year ending March 2024 from its previous view of 949,000 units. It also lowered its revenue estimate for the business to Y78.1 billion from Y152.5 billion. Investors will be focusing on sales trends for EV motors.
–MARGIN: First-quarter operating profit margin rose to 10.6% from 8.3% a year earlier, thanks to cost cuts and higher product selling prices. Investors will be watching for any further profitability improvements as manufacturers globally grapple with inflation.
–OUTLOOK: Nidec has projected revenue to decline 1.9% to Y2.200 trillion and net profit to more than triple to Y165.00 billion in the year ending March 2024. Investors will be looking out for changes the management may make to the annual guidance.
Write to Kosaku Narioka at [email protected]
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