On Monday, Nidec Corp (6594.T), a Japanese electric motor company, reported its first quarterly operating loss in a decade due to high restructuring expenses and semiconductor shortages.
According to a Refinitiv survey of analysts, the January-March quarter loss was 24.3 billion yen ($181.01 million).
“The business environment surrounding Nidec continues to be severe,” the company stated warning of a delay in global vehicle production recovery and other challenges.
A statement said a fall in China’s electric vehicle (EV) unit growth rate and peaking of capital investment-related demand squeezed it.
Nidec has substantially invested in the e-axle traction motor, which combines an electric vehicle’s gear, motor, and power-control electronics.
It began manufacturing a second-generation e-axle system in Guangzhou, China, last September and planned to deploy a third-generation model in 2025.
Iwai Cosmo Securities senior analyst Kazuyoshi Saito said the papers indicated that Nidec was slightly more optimistic about the business ahead, but conditions were unclear, especially in the EV sector.
Electric appliances, industrials, and the economy are unclear. “The business follows the macro economy, so I wonder how much of a recovery there will be,” Saito remarked.
At 0100 GMT on Tuesday, Nidec founder Shigenobu Nagamori will inform media and analysts of the results.
Restructuring cost the corporation heavily in the latest quarter.
Since the restructuring push had begun in the prior quarter and the firm had announced it, analysts expected a large impact on the results.
Nidec’s first quarterly deficit since January-March 2013 followed a 36.9 billion yen profit a year earlier.
The Kyoto-based firm anticipated 220 billion yen in operating profit for the business year that began April 1, compared to 21 analysts’ average of 210.87 billion.
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