Japan's Nidec posts first quarterly loss in 10 years
Japan's Nidec posts first quarterly loss in 10 years

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.

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