Japan-based Nidec Corp raised its full-year profit outlook by 6% on Tuesday, as the precision electric motor maker benefited from amplified demand from home appliance makers, auto makers and others.
The firm expects annual operating profit of 190 billion yen against a previous forecast of 180 billion yen. That’s lower than an average forecast of 192.2 billion yen based on estimates from 20
analysts, according to data from Refinitiv. The Japanese company, known for building motors for computer hard drives and smartphones, is looking to meet the growing demand for electric vehicles with energy-efficient electric car motors called electric axles.
In April, Nidec said it goals to capture about a third of this growing market and is already supplying electric axles to automakers, consisting of Chinese GAC Motor and French Peugeot SA, in competition with Germany’s Bosch Ltd. and the subsidiary of Toyota Motor BluE.
To increase production capacity, Nidec is investing 200 billion yen over a decade to build a European production center in Serbia, which in addition to manufacturing motors for electric vehicles that will set up motors for household appliances.
For the three months ended Sept. 30, the firm posted a 10% increase in second-quarter operating profit to 45.6 billion yen, from 41.4 billion yen a year ago, or worse. than an average profit of 46.8 billion yen estimated by five analysts surveyed by Refinitiv.
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