TOKYO, Oct 26 (Reuters) - Japan's Nidec Corp
increased its full-year earnings outlook by 6% on Tuesday, as
the precision electric motor maker benefited from increased
demand from home appliance makers, auto companies and others.
The company expects a full-year operating profit of 190
billion yen ($1.6 billion) compared with an earlier forecast of
180 billion yen. That is lower than an average 192.2 billion yen
prediction based on estimates from 20 analysts, according to
The Japanese company, which is known for building motors for
computer hard drives and smartphones, is looking to tap the
growing demand for electric vehicles with energy-saving electric
car motors known as e-axles.
In April, Nidec said it was aiming to capture around a third
of that growing market and already supplies e-axles to
automakers including China's GAC Motor and France's
Peugeot SA, competing against Germany's Bosch Ltd
and Toyota Motor affiliate BluE.
To expand production capacity, Nidec is investing 200
billion yen over a decade to build a European production hub in
Serbia, that in addition to making motors for electric vehicles
will build motors for household appliances.
The company's second-quarter operating profit rose 10% to
45.6 billion yen from a year earlier, worse than analysts'
average estimate of 46.8 billion.
Pandemic restrictions in Vietnam cut the production of small
precision motors and raised costs, Nidec chairman and founder,
Shigenobu Nagamori, said at a briefing following the earnings
"Even if there is one infection in a factory with 5,000
workers authorities there will lock it down," Nagamori said.
Those production delays resulted in a 2.5 billion yen loss
in the business segment for the second quarter, the company
(Reporting by Tim Kelly; Editing by Shri Navaratnam, Rashmi
Aich and Ramakrishnan M.)