Nidec, a major electronic component company, has reduced its final profit forecast for the current fiscal year from the initial 165 billion yen to 60 billion yen due to the stagnant production of EV (electric vehicle) related products in China. revised downwards significantly.
According to the financial results of the entire group from April to last month announced by Nidec, sales increased by 20.8% from the same period of the previous year to 1,699.7 billion yen, and the final profit increased by 4.8% to 1040. 100 million yen, both of which were record highs for this period.
This was mainly due to a large order in the power generator business and the impact of the depreciation of the yen pushing up earnings.
On the other hand, regarding the outlook for business results for the current fiscal year, in addition to the stagnant production of EV-related products due to the lockdown in China, we will add approximately 50 billion yen in expenses due to reviewing the production line. As a result, the final profit has been revised significantly downward from the initial 165 billion yen to 60 billion yen.
Nidec Chairman Shigenobu Nagamori held an online press conference, saying, ``We will not carry over the negative legacy of the previous management team and drastically change the profit structure. We will manage it as best we can," he said.