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KYOTO, Japan, July 23, 2024--(BUSINESS WIRE)--Nidec Corporation (TOKYO: 6594; OTC US: NJDCY) (the "Company") today announced an upward revision to its IFRS-based consolidated fiscal first-half and year-end financial forecasts for the year ending March 31, 2025, originally announced on April 23, 2024.
The details are as follows:
1. Revised consolidated financial forecasts (IFRS) for the six months ending September 30, 2024
| From April 1, 2024 to September 30, 2024 (Millions of yen, except per share amounts and percentages) | |||||
|
| For the six months ending September 30, 2024 | (Reference) ended September 30, 2023 | |||
|
| Previous (Apr. 23, 2024) | Revised Forecast | Change | ||
|
Amount |
Percent | ||||
| Net sales | 1,140,000 | 1,300,000 | 160,000 | 14.0% | 1,157,448 |
| Operating profit | 100,000 | 115,000 | 15,000 | 15.0% | 115,309 |
| Profit before income | 95,000 | 130,000 | 35,000 | 36.8% | 144,886 |
| Profit attributable to | 74,000 | 97,000 | 23,000 | 31.1% | 105,710 |
| Earnings per share | 128.79 | 168.81 | - | - | 183.97 |
| (Note) Each of the shares of the Company’s common stock held by shareholders included or recorded in the final register of shareholders as of the record date of September 30, 2024 will be split into two shares (Effective date is October 1, 2024) (the "Stock split"). The tentative average number of shares used in calculation for earnings per share attributable to owners of the parent for the fiscal 2024 first-half forecast does not consider the Stock split. Assuming that the Stock split was conducted at the beginning of the fiscal 2023, the earnings per share attributable to owners of the parent for the fiscal 2024 first-half forecast is \84.41. | |||||
2. Revised consolidated financial forecasts (IFRS) for the year ending March 31, 2025
| From April 1, 2024 to March 31, 2025 (Millions of yen, except per share amounts and percentages) | |||||
|
| For the year ending March 31, 2025 | (Reference) March 31, 2024 | |||
|
| Previous (Apr. 23, 2024) | Revised Forecast | Change | ||
|
Amount |
Percent | ||||
| Net sales | 2,400,000 | 2,500,000 | 100,000 | 4.2% | 2,347,159 |
| Operating profit | 230,000 | 240,000 | 10,000 | 4.3% | 162,554 |
| Profit before income | 220,000 | 250,000 | 30,000 | 13.6% | 202,367 |
| Profit attributable to | 165,000 | 185,000 | 20,000 | 12.1% | 124,899 |
| Earnings per share | 287.16 | 321.96 | - | - | 217.37 |
| (Note) Assuming that the Stock split was conducted at the beginning of the fiscal 2023, the earnings per share attributable to owners of the parent for the fiscal 2024 is \160.98. | |||||
3. Reasons for the revision for the financial forecast
Nidec started a new management system on April 1, 2024 and is focusing on improving profitability in each business area. In the small precision motors business, the demand for HDD motors is recovering, and that for water-cooling systems for AI servers is rapidly expanding. In the automotive business, Nidec swiftly shifted its strategy to put first priority on its profitability in fiscal 2023 to respond to the growth slowdown of the Battery EV market and fierce price competition. Nidec will further strengthen cooperation with the joint venture partner to minimize risks, and also focus on component supply with its technical capabilities and cost competitiveness which were cultivated in the fierce market. Nidec recorded a gain on step acquisition as Nidec PSA emotors became its consolidated subsidiary. In the appliance, commercial and industrial products business, Nidec expects rapid demand expansion of power generators which are essential to data centers, and highly growing demand of Battery Energy Storage Systems which are accelerated by expansion of green innovation related demand.
Nidec records the foreign exchange gain of \15.0 billion because the Japanese yen against the US dollar and the Euro remains weaker than expected.
As a result, the financial results for the three months ended June 30, 2024 exceeded the Company’s previous expectations, originally announced on April 23, 2024, and we revised its forecasts for the first-half and year-end for the year ending March 31, 2025.