Nidec Cuts Net Profit Estimate by 60 Pct

Economy

Kyoto, Jan. 25 (Jiji Press)--Major Japanese motor maker Nidec Corp. <6594> has revised down its consolidated net profit forecast for the business year through March by about 60 pct to 60 billion yen.

The company, based in the western city of Kyoto, also cut its operating profit estimate, by some 50 pct to 110 billion yen.

The downward revisions, announced Tuesday, mainly reflect the fallout of an economic slowdown in China and costs for structural reforms.

Production of motors for electric vehicles was stagnant due to COVID-19 lockdowns in China, and demand for products for use in information technology equipment and home appliances decreased, company officials said.

At an online press conference, Nidec Chairman Shigenobu Nagamori stressed the company’s resolve to promote structural reforms in order to improve profitability in the next business year and later.

[Copyright The Jiji Press, Ltd.]

Jiji Press