Nidec Suffers Net Profit Drop on Weak Sales in China
Kyoto, April 23 (Jiji Press)--Japan's Nidec Corp. <6594> said Tuesday its group net profit fell for the first time in six years in fiscal 2018, as automotive motor sales weakened due to China's sluggish economy.
In the year that ended last month, Nidec's net profit plunged 15.3 pct from the previous year to 110,798 million yen.
Although its sales grew 2.0 pct to a record 1,518,320 million yen, operating profit dived 16.9 pct to 138,620 million yen after it streamlined plants to make motors for hard disk drives and home appliances.
The company also suffered an increase in costs to launch new products.
For fiscal 2019, Nidec expects its sales to increase 8.7 pct to 1.65 trillion yen. Net profit is seen jumping 21.8 pct to a record 135 billion yen thanks to positive effects of past structural reform measures.
[Copyright The Jiji Press, Ltd.]