Nidec Announces Financial Results for Fiscal Third Quarter and Nine Months Ended December 31, 2022

Rhea-AI Summary

Nidec Corporation (OTC US: NJDCY) has reported its consolidated financial results for the period from April 1, 2022, to December 31, 2022. The company achieved record net sales of ¥1,699.7 billion, an increase of 20.8% year-over-year. However, operating profit fell 6.8% year-over-year to ¥124.4 billion. Notably, profit before income taxes and profit attributable to owners rose 9.7% and 4.8%, respectively, both at record levels. Due to market challenges, Nidec announced structural reform expenses and revised its full-year outlook. The company is initiating WPR-X, aimed at enhancing profitability and achieving a V-shaped recovery in FY2023.

Positive

• Net sales increased to record high of ¥1,699.7 billion, up 20.8% Y/Y.
• Profit before income taxes increased by 9.7% Y/Y to ¥141.9 billion.
• Profit attributable to owners rose by 4.8% Y/Y to ¥104.1 billion.

Negative

• Operating profit decreased by 6.8% Y/Y to ¥124.4 billion.
• Revised full-year forecast due to structural reform expenses.

KYOTO, Japan--(BUSINESS WIRE)-- Nidec Corporation (TOKYO: 6594) (OTC US: NJDCY) today announced its consolidated financial results under the International Financial Reporting Standards (“IFRS”) for the period of April 1, 2022 through December 31, 2022.

The highlights are as follows:

• Nine months net sales stood at record high of ¥1,699.7 billion, 20.8% higher Y/Y.
• Nine months operating profit decreased 6.8% Y/Y to ¥124.4 billion.
• Nine months profit before income taxes and profit attributable to owners of the parent increased 9.7% Y/Y to ¥141.9 billion, 4.8% Y/Y to ¥104.1 billion, respectively. Both stood at record high.
• Due to the recent business environment surrounding the company, Nidec posted structural reform expenses, and revised its full-year forecast for FY2022.
• Nidec is implementing WPR-X, the drastic reform on profitability, to tackle recent deteriorations of market environments with aims to reduce the fixed cost significantly and to make a V-shaped recovery in FY2023.
• EPS: ¥180.72 (basic and diluted)

Selected Consolidated Results of Operations (Unaudited) (IFRS-Based)

Yen in millions, except for per share amounts and percentages	Nine months ended December 31,				Increase (Decrease) %		Three months ended December 31,				Increase (Decrease) %
	2022		2021				2022		2021
Net sales	1,699,747		1,407,210		20.8 %		568,980		496,542		14.6%
Operating profit	124,404		133,487		(6.8) %		28,036		44,343		(36.8) %
Ratio of operating profit to net sales	7.3 %		9.5 %		-		4.9 %		8.9%		-
Profit before income taxes	141,944		129,410		9.7 %		23,569		42,307		(44.3) %
Ratio of profit before income taxes to net sales	8.4 %		9.2 %		-		4.1 %		8.5%		-
Profit attributable to owners of the parent	104,077		99,312		4.8 %		17,428		32,700		(46.7) %
Ratio of profit attributable to owners of the parent to net sales	6.1 %		7.1 %		-		3.1 %		6.6%		-
Earnings per share attributable to owners of the parent - basic	180.72		169.73		-		30.32		55.94		-
Earnings per share attributable to owners of the parent - diluted	180.72		169.73		-		30.32		55.94		-

Full copy of Nidec’s financial statements for the third quarter and nine months ended December 31, 2022:
https://www.nidec.com/en/ir/news/2023/news0124-03/

A conference call webcast (audio-only, user-control slides attached) discussing Nidec’s financial results for the third quarter and nine months ended December 31, 2022 is scheduled for 09:00 a.m. EST on Tuesday, January 24, 2023. To listen to the webcast, please visit Nidec website at:
https://www.nidec.com/en/ir/event/conference

About Nidec Corporation

Nidec Corporation (TOKYO: 6594) (OTC US: NJDCY) is a global leader in electric motor drive technology. For the nine months ended December 31, 2022, 19.6% of its consolidated sales were represented by small precision motors; 23.2% by automotive products; 40.1% by appliance, commercial and industrial products; 13.1% by machinery; 3.8% by electronic and optical components, and 0.2% by the remaining products lines. Nidec was founded in Kyoto, Japan in 1973 by Shigenobu Nagamori, its current Chairman and CEO.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230123005827/en/

Masahiro Nagayasu

General Manager

Investor Relations

+81-75-935-6140

ir@nidec.com

Source: Nidec Corporation

FAQ

What are Nidec's financial results for nine months ended December 31, 2022?

Nidec reported record net sales of ¥1,699.7 billion, operating profit of ¥124.4 billion, and profit before income taxes of ¥141.9 billion.

How did Nidec's earnings per share (EPS) perform for FY2022?

Nidec's EPS for the nine months was ¥180.72, showing an increase compared to the previous year.

What challenges did Nidec face in its latest financial results?

Nidec faced market environment deteriorations, leading to structural reform expenses and a revised full-year forecast.

What is Nidec's strategy for recovery in FY2023?

Nidec is implementing WPR-X, a program focused on significant cost reductions aimed at achieving a V-shaped recovery.