October 26, 2021
TOKYO (Reuters) -Japan’s Nidec Corp increased its full-year earnings outlook by 6% on Tuesday, as the precision electric motor maker benefited from increased demand from home appliance makers, auto companies and others.
The company expects full year operating profit of 190 billion yen compared with an earlier forecast of 180 billion yen. That is lower than an average 192.2 billion yen prediction based on estimates from 20 analysts, according to Refinitiv data.
The Japanese company, which is known for building motors for computer hard drives and smartphones, is looking to tap growing demand for electric vehicles with energy-saving electric car motors known as e-axles.
In April, Nidec said it was aiming to capture around a third of that growing market and already supplies e-axles to automakers including China’s GAC Motor and France’s Peugeot SA, competing against Germany’s Bosch Ltd and Toyota Motor affiliate BluE.
To expand production capacity, Nidec is investing 200 billion yen over a decade to build a European production hub in Serbia, that in addition to making motors for electric vehicles that will build motors for household appliances.
For the three months ended Sept 30 the company posted a 10% rise in second quarter operating profit to 45.6 billion yen compared with a profit of 41.4 billion yen a year ago, worse than an average 46.8 billion yen profit estimated by five analysts surveyed by Refinitiv.
(Reporting by Tim Kelly; Editing by Shri Navaratnam and Rashmi Aich)
Source Link Japan’s Nidec raises full-year profit outlook on strong demand