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Nidec in Japan increased quarterly profit by 60%, supported by demand for EV motors

File photo: The Nidec logo was taken at a press conference held in Tokyo on July 25, 2018. REUTERS / Kim Kyung-Hoon

July 21, 2021

Tokyo (Reuters) -Japanese electronic component maker Nidec on Wednesday, supported by a recovery in motor demand for electric vehicles (EVs) and home appliances, operating profit in the first quarter increased 60% to 44.6 billion yen (44.6 billion yen) It was $ 406 million).

Nidec, well-known for manufacturing hard drives for computers and electric motors for smartphones, is trying to capture about one-third of the emerging markets for energy-saving EV motors known as e-axles. These demands are widely expected to increase tenfold over the next decade.

Nidec Corporation announced that it has agreed to consider a joint venture with Taiwan’s Hong Hai Technology Group to develop EV motors as it expands to auto parts. The two companies said in a news release that they would establish a venture in 2022 to help Nidec expand into new markets and ensure a stable supply of motors to Hong Hai.

Nidec, which supplies e-axles to automakers such as Guangzhou Automobile Co Ltd in China and Peugeot in France, will spend 200 billion yen in 10 years to build a production base in Serbia to manufacture EVs and home appliance motors in April. Announced plans to invest in.

Nidec’s business performance for the three months to June 30 increased from 28 billion yen in the previous year, exceeding the average of 41.2 billion yen estimated by the six analysts compiled by Refinitiv.

Nidec’s president, Jun Seki, told media briefing that despite the rebound, a shortage of semiconductors forced customers to lower production levels, hampering sales and profits this quarter.

“We expect production to recover during the second quarter,” he said.

The company expected full-year operating profit of 180 billion yen. According to Refinitiv data, this is lower than an average of 22 analysts’ estimates of 193.5 billion yen.

($ 1 = 109.8500 yen)

(Report by Tim Kelly, edited by Clarence Fernandez and Christopher Cushing)



Nidec in Japan increased quarterly profit by 60%, supported by demand for EV motors

Source link Nidec in Japan increased quarterly profit by 60%, supported by demand for EV motors

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