Nidec to Report Second-Quarter Results

Net Profit Forecast

Analysts polled by FactSet expect Nidec to record a 19% decrease in net profit, amounting to 36.63 billion yen ($244.6 million) for the quarter ending on September 30. This figure contrasts with the net profit of 45.33 billion yen reported a year ago.

Revenue Forecast

According to the same FactSet poll, second-quarter revenue is projected to have increased by 9.9% to reach 649.09 billion yen.

Points of Interest

EV Motors

Nidec adjusted its sales outlook for electric-vehicle (EV) traction motors in July. The company revised its forecast for the year ending in March 2024 from 949,000 units to 545,000 units and lowered the revenue estimate from 152.5 billion yen to 78.1 billion yen. Investors will closely monitor the sales trends for EV motors.

Margin

Nidec experienced a rise in first-quarter operating profit margin, increasing from 8.3% to 10.6% YoY. This improvement was attributed to cost-cutting measures and higher product prices. Investors will pay attention to any further enhancements in profitability, considering the global challenge of inflation faced by manufacturers.

Outlook

Nidec's management projects a 1.9% decline in revenue, totaling 2.200 trillion yen, and a tripled net profit of 165.00 billion yen for the fiscal year ending in March 2024. Investors will be keen on any updates or modifications that might be made to the annual guidance.