Nidec Revises Consolidated Financial Forecasts for the Year Ending March 31, 2023

Rhea-AI Summary

Nidec Corporation has revised its IFRS-based consolidated financial forecasts for the year ending March 31, 2023. The updated forecast estimates net sales at ¥2,200,000 million, an increase of 4.8% from the previous forecast of ¥2,100,000 million. However, operating profit is expected to decline significantly to ¥110,000 million, down 47.6% from a prior forecast of ¥210,000 million. The revision is attributed to declining shipments in IT equipment and home appliances, a delayed automotive production recovery, and a slump in demand for EV-related products due to supply chain disruptions in China.

Positive

• Net sales forecast increased to ¥2,200,000 million, up 4.8% from previous forecast.

Negative

• Operating profit forecast significantly lowered to ¥110,000 million, a decrease of 47.6%.
• Profit before taxes expected to drop to ¥120,000 million, down 41.7%.
• Profit attributable to owners forecasted at ¥60,000 million, a decline of 63.6%.
• Decreased demand from IT and home appliances, and delays in automotive production impacting sales.

KYOTO, Japan--(BUSINESS WIRE)-- Nidec Corporation (TOKYO: 6594)(OTC US: NJDCY) (the “Company”) today announced a revision to its IFRS-based consolidated full-year financial forecasts for the year ending March 31, 2023, previously announced on April 21, 2022.

1. Revised consolidated financial forecasts (IFRS) for the year ending March 31, 2023

From April 1, 2022 to March 31, 2023 (Millions of yen, except per share amounts and percentages)
	For the year ending March 31, 2023				(Reference) For the Year Ended March 31, 2022
	Previous Forecast (Apr. 21, 2022)	Revised Forecast	Change
			Amount	Percent
Net sales	2,100,000	2,200,000	100,000	4.8%	1,918,174
Operating profit	210,000	110,000	(100,000)	(47.6)%	170,374
Profit before income taxes	206,000	120,000	(86,000)	(41.7)%	170,032
Profit attributable to owners of the parent	165,000	60,000	(105,000)	(63.6)%	135,759
Earnings per share attributable to owners of the parent -basic	286.65	104.24	-	-	232.40

Reasons for the revision

The recent business environment surrounding the Company continued to be severe as the IT equipment and home appliance shipments have been decreasing after the markets passed their peaks. Also, the global automotive production recovery has been delayed, the US housing starts have been decreasing, and the demand for capital investments has passed its peak. In addition, the demand for our EV-related products was affected by the production slowdown due to the lockdowns in China. Reflecting these changes in the business environment, the Company recorded restructuring expenses and revised its fiscal 2022 earnings forecast.

Notes:
(1)	The provided financial forecast assumes the exchange rates of ¥110 against the U.S. dollar and ¥125 against the euro, the same exchange rates used for the preparation of the previously announced forecast.
(2)	During the nine months ended December 31, 2022, the Company completed the provisional accounting treatment for business combination. As a result, figures for the year ended March 31, 2022 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230123005831/en/

Masahiro Nagayasu

General Manager

Investor Relations

+81-75-935-6140

ir@nidec.com

Source: Nidec Corporation

FAQ

What are the revised financial forecasts for Nidec Corporation for the year ending March 31, 2023?

Nidec Corporation's revised financial forecasts include net sales of ¥2,200,000 million, operating profit of ¥110,000 million, and profit attributable to owners of ¥60,000 million.

How much did Nidec Corporation increase its net sales forecast?

Nidec Corporation increased its net sales forecast by ¥100,000 million, representing a 4.8% increase.

What factors led to the revision of Nidec Corporation's financial forecasts?

The revision was influenced by declining IT equipment and home appliance shipments, delays in automotive production recovery, and reduced demand for EV-related products due to supply chain issues.

What is the impact of Nidec Corporation's revised forecast on operating profit?

Nidec Corporation's operating profit forecast was revised downward to ¥110,000 million, a decrease of 47.6% from the previous estimate.

What is the profit before tax forecast for Nidec Corporation?

The profit before tax for Nidec Corporation is forecasted at ¥120,000 million, down 41.7% from the previous forecast.