Nidec Posts 82 Pct Profit Drop on Automotive Biz Losses

Tokyo, Nov. 15 (Jiji Press)–Japanese motor giant Nidec Corp. has said that its consolidated operating profit fell 82.5 pct from a year earlier to 21.1 billion yen for the six months to September, hurt by massive losses at its automotive products business. Net profit dropped 58.6 pct to 31.2 billion yen, according to an announcement made on Friday. Nidec again stopped short of disclosing its full-year forecasts. For the first half of fiscal 2025, Nidec booked 36.4 billion yen in provisions for possible losses related to contracts with customers as it revised projections for motor control components for electric vehicles. Another negative factor was 31.6 billion yen in impairment losses on nonfinancial assets. Meanwhile, the company’s sales reached a record high of 1,302.3 billion yen, driven by strong performance of motors for hard disk drives and other devices. Nidec is under investigation by a third-party panel over irregularities, including trade-related problems at an Italian subsidiary and improper accounting by a Chinese unit. At a press conference in Tokyo, Nidec President Mitsuya Kishida said that the series of misconduct stemmed partly from its corporate culture, which overly focuses on short-term earnings. “I am prepared to take responsibility as manager. My primary mission is to rebuild Nidec into a company that shines on the global stage,” he said. END [Copyright The Jiji Press, Ltd.]