By Kosaku Narioka
Nidec Corp. shares fell sharply after the Japanese electric-motor maker posted a drop in second-quarter net profit and lowered the annual sales forecast for electric-vehicle traction motors.
The shares were recently 10% lower at 6,012 yen on Tuesday morning.
Nidec said Monday after market close that net profit dropped 7.3% from a year earlier to Y42.04 billion ($280.8 million) for the three months ended Sept. 30, due partly to weakness in its machinery and auto parts businesses. Second-quarter revenue increased 0.7% to Y594.61 billion.
Nidec cut its sales forecast for electric-vehicle traction motors to 350,000 units for the fiscal year ending March, from its previous view of 545,000 units, and lowered the revenue estimate for the business to Y48.9 billion this fiscal year from Y78.1 billion previously projected.
The electric-motor maker said it is limiting the sale of unprofitable EV motor models, and is procuring more from Chinese parts makers to shorten the time required for production in China, its primary market for EV motors.
Nidec kept its overall earnings forecasts unchanged for the fiscal year. It continues to expect revenue to decline 1.9% to Y2.200 trillion and net profit to more than triple to Y165.00 billion.
Write to Kosaku Narioka at [email protected]
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