Nidec Posts Higher Quarterly Net Profit

By Kosaku Narioka

Nidec Corp. reported a rise in second-quarter net profit, helped in part by stronger earnings from its small precision motors business.

The Japanese maker of electric motors and other equipment said Friday that net profit more than doubled to 40.57 billion yen, equivalent to $262.5 million, for the three months ended September, from Y19.39 billion a year earlier.

The results missed the estimate of Y47.6 billion in a poll of analysts by data provider Visible Alpha.

Second-quarter revenue increased 2.9% on year to Y664.28 billion. Operating profit from the company's small precision motors business increased 11% to Y17.74 billion.

For its first quarter, Nidec booked a net loss of Y9.38 billion--revised down from its preliminary July figure--due to impairment charges and write-downs in its auto-parts business, as well as costs tied to a supplier dispute.

In October, Nidec withdrew its earnings forecasts for the fiscal year ending March 2026 and said it wouldn't pay an interim dividend as a third-party committee investigates suspected accounting irregularities. Later that month, the Tokyo Stock Exchange placed the stock on special alert and said the company needs to strengthen its internal controls.

Nidec said Friday that it plans to disclose measures to improve internal controls in late January 2026. The company also said its auditor, PwC Japan, declined to issue an opinion on its first-half financial statements because of the ongoing investigation.

Nidec formed a third-party committee in September to investigate potential cases of improper accounting. Earlier probes uncovered documents that suggest practices such as arbitrary changes to the timing of writing down assets.

Nidec shares have fallen 21% year to date amid uncertainty over investigation.

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

(END) Dow Jones Newswires

November 14, 2025 03:41 ET (08:41 GMT)