Nidec Corp., a leading global manufacturer of electric motors, recently announced its impressive financial results for the first quarter. Here are the highlights:
Net Profit Surges 55%
Nidec’s net profit for the quarter ended June 30 soared by an impressive 55% to reach 64.04 billion yen ($458.6 million). This remarkable achievement exceeded the estimated net profit of Y34.22 billion according to a poll of analysts by FactSet.
Robust Revenue Growth
The company experienced significant revenue growth as well, with first-quarter revenue increasing by 4.8% from the previous year, amounting to Y566.055 billion. This exceeded the estimated revenue of Y543.90 billion in the FactSet poll.
Key Factors Driving Success
Several key factors contributed to Nidec’s strong performance:
Margin Expansion
Nidec managed to improve its first-quarter operating-profit margin from 8.3% to an impressive 10.6% compared to the same period last year. This margin expansion was mainly driven by effective cost-cutting measures and a rise in selling prices.
Adjustment in Sales Forecast
The company made strategic adjustments to its sales forecast for electric-vehicle (EV) traction motors. Nidec now expects to sell 545,000 units by the end of the fiscal year ending March 2024, which is notably lower than its previous projection of 949,000 units. Consequently, the revenue estimate for this business segment has been revised to Y78.1 billion from Y152.5 billion. In the past fiscal year, Nidec sold 339,000 units of EV traction motors, generating Y54.0 billion in revenue.
Steady Outlook
Despite making adjustments to its sales forecast, Nidec has decided to keep its fiscal-year earnings projections unchanged. The company anticipates an overall decline in revenue by 1.9% to Y2.200 trillion; however, it expects net profit to more than triple, reaching Y165.00 billion.
Overall, Nidec is off to a strong start in the fiscal year, demonstrating impressive growth and a positive outlook for the future.
