Japan's Nidec posts first quarterly loss in 10 years
Japanese electric motor maker Nidec Corp 6594.T on Monday posted its first quarterly operating loss in a decade, of 24.3 billion yen ($181.01 million), hit by hefty restructuring costs and difficulty in procuring semiconductors and other components.
The result for the January-March fourth quarter compared to an average estimate for a 11.75 billion yen loss in a survey of eight analysts by Refinitiv. It also compared to a 36.9 billion yen profit in the same period a year earlier.
"The business environment surrounding Nidec continues to be severe," the company said in a statement. It warned of a delay in the recovery of global automobile production, among other headwinds.
It was also squeezed by a decline in unit growth rate in the electric vehicle (EV) market in China and a peaking out of capital investment-related demand, it said.
Nidec has made a big bet on growth in the EV market, investing heavily in production and development of the e-axle traction motor, which combines an electric vehicle's gear, motor and power-control electronics.
In the latest quarter it took a hefty hit related to restructuring as it looks to sharply reduce fixed costs.
For the business year that began April 1, the Kyoto-based firm forecast operating profit of 220 billion yen, versus an average 210.87 billion yen forecast by 21 analysts.