Nidec Announces its Revision of Upward Consolidated Fiscal First-Half and Year-End Financial Forecasts for the Year Ending March 31, 2025
July 23 2024 - 1:30AM
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) For the six
months
ended September
30, 2023
Previous Forecast
(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 taxes
95,000
130,000
35,000
36.8%
144,886
Profit attributable to owners of
the parent
74,000
97,000
23,000
31.1%
105,710
Earnings per share attributable
to owners of the parent -basic
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) For the year
ended
March 31, 2024
Previous Forecast
(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 taxes
220,000
250,000
30,000
13.6%
202,367
Profit attributable to owners of
the parent
165,000
185,000
20,000
12.1%
124,899
Earnings per share attributable
to owners of the parent -basic
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.
Notes:
(1)
The provided financial forecast assumes
the exchange rates of ¥145 against the U.S. dollar and ¥155 against
the euro, the same exchange rates used for the preparation of the
previously announced forecast.
(2)
During the three months ended June 30,
2024, the Company completed the provisional accounting treatment
for business combination. As a result, figures for the six months
ended September 30, 2023 and the year ended March 31, 2024 reflect
the revision of the initially allocated amounts of acquisition
price.
Cautionary Statement Concerning Forward-Looking
Information
This press release contains forward-looking statements including
expectations, estimates, projections, plans, and strategies. Such
forward-looking statements are based on management’s assumptions
and beliefs in light of the information currently available.
Certain risks, uncertainties and other factors could cause actual
results to differ materially from those discussed in the
forward-looking statements. Such risks and uncertainties include,
but are not limited to, changes in customer circumstances and
demand, exchange rate fluctuations, and the Nidec Group’s ability
to design, develop, mass produce and win acceptance of its products
and to acquire and successfully integrate companies with
complementary technologies and product lines. Please see other
disclosure documents filed or published by the Nidec Group
companies, including the Japanese security report, for additional
information regarding such risks and uncertainties. Nidec
undertakes no obligation to update the forward-looking statements
unless required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20240722454195/en/
Teruaki Urago General Manager Investor Relations +81-75-935-6140
ir@nidec.com