By Kosaku Narioka


Nidec Corp.'s shares fell sharply after it lowered its fiscal-year net profit forecast, citing costs related to restructuring at its electric-vehicle motor business amid severe competition in China.

Shares were 3.7% lower at 5,682 yen after falling as much as 6.2% earlier Thursday morning.

The Japanese electric-motor maker said Wednesday after market close that it would book restructuring expenses for its EV traction motor business to improve its financial footing and strengthen profitability.

With severe competition disrupting the EV market in China, the company has been limiting the intake of orders for unprofitable models there and expanding its business in Europe and the U.S., it said.

Nidec projected net profit for the fiscal year ending March to triple to Y135.00 billion ($915.2 million), down from its previous forecast of Y165.00 billion.

For its third quarter, net profit more than doubled to Y39.84 billion from Y17.43 billion in the year-earlier period. Third-quarter revenue increased 4.4% to Y594.03 billion, led by gains in U.S. and Europe.


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


(END) Dow Jones Newswires

01-24-24 2030ET