Shares of Nidec Corp., a leading Japanese electric-motor maker, experienced a significant boost in value following the announcement of its impressive first-quarter results. The company’s net profit for the quarter rose by 55% compared to the previous year, surpassing analysts’ expectations. This outstanding performance was primarily attributed to the remarkable recovery of Nidec’s auto-parts business.
Nidec Corp. revealed that its net profit for the quarter ended June reached Y64.04 billion ($457.2 million), exceeding the estimated Y34.22 billion forecasted by analysts. The company’s first-quarter revenue also saw a year-on-year increase of 4.8%, amounting to Y566.055 billion. Furthermore, Nidec’s operating-profit margin improved from 8.3% to 10.6%, driven by cost-cutting measures and higher product selling prices.
Strong Recovery in Automotive Products
One of the standout achievements from Nidec’s first-quarter performance was the sharp rebound of its automotive products segment. The operating profit for automotive products experienced a significant turnaround, increasing from a Y32 million loss in the previous year to Y11.03 billion.
Nidec Corp. has ambitious plans for its electric-vehicle traction motors business, projecting sales of 545,000 units by the end of the fiscal year ending March 2024. This represents a substantial increase compared to the previous fiscal year’s sales of 339,000 units. Additionally, the company anticipates a rise in fiscal-year revenue for the EV-traction motors business, expecting it to reach Y78.1 billion, up from Y54.0 billion in the previous fiscal year.
Nidec Corp’s impressive first-quarter results demonstrate its resilience and adaptability in a challenging market landscape. With a strong recovery in the auto-parts sector and promising future projections for its electric-vehicle traction motors business, the company is poised for continued success.