Nidec Corp. Shares Jump After Quarterly Profit Rises on Auto-Parts Recovery

By Kosaku Narioka

Nidec Corp. shares rose sharply Friday morning after its first-quarter net profit rose 55% from a year earlier, beating analysts' expectations, thanks partly to a sharp recovery in its auto-parts business.

The company's shares were recently 8.9% higher at 8,477 yen after rising as much as 9.1% earlier.

The Japanese electric-motor maker said Thursday after market close that net profit rose 55% from a year earlier to Y64.04 billion ($457.2 million) for the quarter ended June. That exceeded the estimate of Y34.22 billion in a poll of analysts by FactSet.

First-quarter revenue increased 4.8% from a year earlier to Y566.055 billion and operating-profit margin improved to 10.6% from 8.3%, thanks to cost cuts and higher product selling prices.

First-quarter operating profit for automotive products recovered sharply to Y11.03 billion from a Y32 million loss a year earlier.

Nidec projects that it will sell 545,000 units of its electric-vehicle traction motors in the fiscal year ending March 2024, up from 339,000 units the previous fiscal year. It expects fiscal-year revenue for the EV-traction motors business to rise to Y78.1 billion from Y54.0 billion the previous fiscal year.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

July 20, 2023 21:32 ET (01:32 GMT)

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