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TOKYO (Reuters) – Japanese electric motor maker Nidec (6594.T) on Tuesday cut its full-year operating profit forecast by nearly half. It faced pressure from declining demand for technology products and a slower-than-expected recovery. of the global automotive industry.
The company cut its operating profit forecast for the fiscal year ending March by 48% to 110 billion yen ($845 million).
That fell short of the ¥202.5 billion full-year operating profit forecast based on estimates from 20 analysts, according to Refinitiv data.
Operating profit for the third quarter to December was 28.0 billion yen, down 37% from 44.3 billion yen for the same period last year. This was lower than the average profit of ¥51.34 billion estimated by the six analysts.
Looking to grab a share of the global electric vehicle market, the company is investing heavily in the production and development of traction motors called e-axles, which combine electric vehicle gears, motors and power control electronics.
Nidec, which will celebrate its 50th anniversary in July, predicted last quarter that its e-axle business would be profitable in the fiscal year starting in April.
In September, it started production of the second-generation model of the e-axle system in Guangzhou, China.
(1 dollar = 130.1300 yen)
Reporting by Daniel Leussink.Edited by Changlan Kim and Sherry Jacob Phillips
Our standards: Thomson Reuters Trust Principles.
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