Salem Radio Network News Friday, May 20, 2022

Business

Nidec posts lower quarterly profit as costs rise

TOKYO (Reuters) – Nidec Corp, a Japanese maker of electric motors, on Wednesday said third-quarter operating profit dipped as rising material prices and a shortage of semiconductors pushed up costs.

The company posted an operating profit of 44.3 billion yen ($388.90 million) for the three months to Dec. 31, down from 46.4 billion a year earlier. The result fell short of an average 49.9 billion yen profit estimated by five analysts surveyed by Refinitiv.

Nidec is investing 200 billion yen over the next decade on a European production hub in Serbia that make motors for electric vehicles and household appliances.

The Japanese company, better known for building motors for computer hard drives and smartphones, last year said it aims to capture around a third of an expanding market for energy-saving electric car motors known as e-axles.

The company stuck to its full-year forecast for operating profit of 190 billion yen. The prediction is lower than an average forecast of 193.5 billion yen based on estimates from 22 analysts, Refinitiv data shows.

($1 = 113.9100 yen)

(Reporting by Tim Kelly; Editing by Clarence Fernandez and Subhranshu Sahu)

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