: Japanese electric motor maker Nidec on Tuesday posted an unexpected operating loss for the January to March quarter, hit by the costs of restructuring steps taken to deal with fierce price competition in China's electric vehicle market.
Nidec has sought to tap a growing share of the battery-powered vehicle market globally through developing and making an e-axle traction motor that combines an EV's gear, motor and power-control electronics. For the current business year to March 2025, Nidec expects operating profit to grow 41% from a year earlier to 230 billion yen, although the outlook is still below an average estimate of a 242.93 billion yen profit by 18 analysts.
“In addition, new business opportunities such as water-cooling modules are emerging with the increase of demand for data centers in the fields of generative AI.”Iwai Cosmo Securities analyst Kazuyoshi Saito said Nidec's profit growth forecast of more than 40%, substantial though it is, is unlikely to prompt investors to chase the company's shares sharply higher.