Nidec Corporation Revises Financial Forecasts Upward for Fiscal Year 2025

Nidec's Optimistic Financial Outlook

Nidec Corporation, a leading Japanese manufacturer of electric motors, has announced a significant upward revision of its consolidated financial forecasts for the fiscal year ending March 31, 2025. This positive adjustment reflects the company's improved profitability and increased demand across various business segments 1

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Revised Forecasts

The company has revised its forecasts for both the fiscal first half and the full year. For the first half of the fiscal year, Nidec now projects:

• Net sales of 1,100 billion yen (up from 1,000 billion yen)
• Operating profit of 85 billion yen (up from 70 billion yen)
• Profit before income taxes of 80 billion yen (up from 65 billion yen)
• Profit attributable to owners of the parent of 60 billion yen (up from 50 billion yen)

For the full fiscal year, the revised forecasts are:

• Net sales of 2,300 billion yen (up from 2,200 billion yen)
• Operating profit of 200 billion yen (up from 190 billion yen)
• Profit before income taxes of 190 billion yen (up from 180 billion yen)
• Profit attributable to owners of the parent of 140 billion yen (up from 135 billion yen) 2

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Factors Driving the Upward Revision

Nidec attributes this positive outlook to several key factors:

1. Improved profitability in its automotive business, particularly in electric vehicle traction motors
2. Increased demand and improved productivity in its small precision motor segment
3. Recovery in its machinery business, especially in press machines and speed reducers

The company also notes that these forecasts are based on the assumption that the exchange rates for the second quarter and beyond will be 140 yen against the U.S. dollar and 150 yen against the euro 1

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Implications for Investors

This upward revision in financial forecasts is likely to be well-received by investors and market analysts. It demonstrates Nidec's resilience in the face of global economic challenges and its ability to capitalize on growing markets, particularly in the electric vehicle sector.

Cautionary Statement

While the revised forecasts paint an optimistic picture, Nidec cautions that these projections are based on information currently available to the company and certain assumptions that are deemed reasonable. Actual results may differ materially from these forecasts due to various factors 2

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