Consecutive Revenue and Profit Growth and Record-High Performance

「After the market close on 30 September (16:30), Nidec [<6594>](/stocks/6594/) [TSE Prime] announced its financial results (International Financial Reporting Standards, or IFRS).」

「Operating income (loss) 2,606,347 2,708,705 102,358 3.9% 128,222 △518,978」

「Consolidated revenue from continuing operations for the cumulative consolidated period was ¥2,708,705 million, up 3.9% year on year. Operating loss was ¥518,978 million, a decline of ¥647,200 million from the previous fiscal year, following the recognition of ¥632,135 million in impairment losses on non-financial assets during the fiscal year.」

「Consolidated revenue from continuing operations for the interim consolidated accounting period was ¥1,302,303 million, up 0.7% year on year and a record high. Operating profit was ¥21,107 million, down 82.5% year on year, due to the recognition of a provision for contract losses of ¥36,471 million, impairment losses on non-financial assets of ¥31,674 million and liabilities of ¥19,495 million related to a settlement of a recourse claim from a supplier during the interim consolidated accounting period.」

「Under the new management structure, the Group strengthened its Three New activities—new markets, new products and new customers—as one team, resulting in record highs for revenue, operating profit, profit before tax and net profit for the consolidated fiscal year.」

「Under the new management structure, the Group strengthened its Three New activities—new markets, new products and new customers—as one team, resulting in record-high revenue and operating profit for the interim consolidated accounting period.」

「To provide high-quality products at appropriate prices in response to market and customer needs, the Group continued to strengthen its Three New activities—new markets, new products and new customers—and pursue thorough cost reductions as one team, resulting in record-high revenue and profit before tax for the fiscal year.」

「As a result, revenue, operating profit, profit before tax for the quarter and profit for the quarter attributable to owners of the parent all reached record highs for the cumulative third quarter.」

「Consolidated revenue from continuing operations for the cumulative second quarter was ¥1,160,662 million, up 2.6% year on year and a record high, including a foreign exchange impact of approximately ¥45,700 million in additional revenue. This was despite continued adjustments in demand for consumer electronics and slower unit growth in China's EV market, as the IT equipment industry showed signs of bottoming out, global automotive production recovered and demand related to industry and infrastructure remained strong. Operating profit was ¥115,782 million, up 20.1% year on year and a record high, including a foreign exchange impact of approximately ¥3,200 million in additional profit, reflecting steady progress in cost improvements, including substantial reductions in fixed expenses achieved through the restructuring carried out in the previous fiscal year.」

「Operating profit was ¥60,152 million, up 34.7% year on year and a record high, including a foreign exchange impact of approximately ¥1,500 million in additional profit. This reflected steady progress in cost improvements, including substantial reductions in fixed expenses achieved through the restructuring carried out in the previous fiscal year.」

「Consolidated revenue from continuing operations for the fiscal year increased 16.9% year on year to ¥2.242824 trillion and reached a record high. This included an increase of approximately ¥270.9 billion from the foreign exchange impact, amid the effects of Russia’s invasion of Ukraine and continued difficulty for customers in procuring semiconductors and other electronic components, as well as higher revenue from equipment and systems, including entry into the automotive products business, such as traction motor systems (E-Axle), and the machine tools business.」

「Consolidated revenue from continuing operations for the cumulative third quarter was ¥1,699,747 million, up 20.8% year on year and a record high, including a foreign exchange impact of approximately ¥221,300 million in additional revenue, amid the impact of Russia's invasion of Ukraine and continued difficulties for customers in procuring semiconductors and other electronic components. Profit before tax was ¥141,944 million, up 9.7% year on year, partly reflecting foreign exchange gains of approximately ¥18,400 million. Profit for the quarter from continuing operations was ¥104,187 million, up 5.0%, and profit for the quarter attributable to owners of the parent was ¥104,077 million, up 4.8%. All three reached record highs.」

「Consolidated revenue from continuing operations for the cumulative second quarter was ¥1,130,767 million, up 24.2% year on year and a record high, including a foreign exchange impact of approximately ¥139,600 million in additional revenue, amid the impact of Russia's invasion of Ukraine and continued difficulties for customers in procuring semiconductors and other electronic components. Operating profit was ¥96,368 million, up 8.1% year on year and a record high, including a foreign exchange impact of approximately ¥17,000 million in additional profit, as the Company reflected global cost increases in selling prices while continuing to improve costs and optimize fixed expenses.」

「Consolidated revenue from continuing operations for the cumulative first quarter was ¥5,403,690 million, up 20.8% year on year and a record high. Profit before tax was ¥569,890 million, up 30.3%; profit for the quarter from continuing operations was ¥418,870 million, up 25.5%; and profit for the quarter attributable to owners of the parent was ¥413,210 million, up 23.5%. All three also reached record highs.」

「Full-year consolidated revenue from continuing operations rose 18.5% year on year to ¥1,918.174 billion, setting a new record high, due to higher sales of compressors for appliances, motors for air-conditioning equipment, and motors and gears for transport robots in Europe and the United States, as well as strong sales of equipment and machinery products, including the machine tools business entered during the fiscal year.」

「For the nine months ended the third quarter, consolidated revenue from continuing operations rose 18.8% year on year to ¥1,407.210 billion, setting a new record high, due to higher sales of compressors for appliances, motors for air-conditioning equipment, and motors and gears for transport robots in Europe and the United States. Operating profit rose 16.6% to ¥134.631 billion, also setting a new record high, primarily due to higher sales of appliance, commercial and industrial products and the implementation of thorough cost improvements and fixed-cost optimisation under the WPR4 project in response to the impact of electronic component shortages, including semiconductors, at customers and soaring raw material prices worldwide.」

「For the six months ended the second quarter, consolidated revenue from continuing operations rose 21.1% year on year to ¥910.668 billion, setting a new record high, despite lower revenue due to the impact of prolonged COVID-19 lockdowns at manufacturing sites in Southeast Asia, particularly Vietnam, difficulties procuring electronic components such as semiconductors, and production cuts caused by COVID-19 lockdowns at some customers’ plants. Operating profit rose 30.4% to ¥90.196 billion.」

「For the three months ended the first quarter, consolidated revenue from continuing operations rose 32.8% year on year to ¥447.470 billion, setting a new record high. Operating profit rose 60.3% to ¥44.555 billion due to higher sales of appliance, commercial and industrial products and automotive products, as well as the implementation of thorough cost improvements and fixed-cost optimisation under the WPR4 project.」

「Full-year consolidated revenue from continuing operations rose 5.4% year on year to ¥1,618.064 billion, setting a new record high as the Company successively captured new demand for appliances, IT products and game consoles. Operating profit rose 47.4% to ¥160.011 billion.」

「For the nine months ended the third quarter, consolidated revenue from continuing operations rose 2.2% year on year to ¥1,184.991 billion, setting a record high for the nine-month cumulative period as the Company successively captured new demand for appliances, IT products and game consoles. Operating profit rose 24.0% to ¥115.535 billion due to higher revenue from capturing this new demand and the implementation of thorough cost improvements and fixed-cost optimisation under the WPR4 project.」

「For the six months ended the second quarter, consolidated revenue from continuing operations rose 0.1% year on year to ¥751.794 billion. Operating profit rose 12.0% to ¥69.180 billion due to thorough cost improvements and fixed-cost optimisation under the WPR4 project.」

「For the three months ended the first quarter, consolidated revenue from continuing operations declined 6.6% year on year to ¥336.876 billion. Although the decline in revenue reduced profit, operating profit rose 1.7% to ¥28.112 billion due to thorough cost improvements and fixed-cost optimisation under the WPR4 project.」

「Full-year consolidated revenue from continuing operations rose 4.0% year on year to ¥1,534.8 billion, setting a new record high, despite a foreign exchange impact that reduced revenue by approximately ¥38.1 billion. Operating profit declined 14.6% year on year to ¥110.326 billion, due to a foreign exchange impact of approximately ¥7.7 billion, additional costs of approximately ¥14 billion for upfront investment in the development and production launch of traction motor systems (E-Axle) and other products facing rapidly expanding demand, and an approximately ¥3 billion increase in one-time acquisition costs.」

「For the nine months ended the third quarter, consolidated revenue from continuing operations rose 3.3% year on year to ¥1,159.608 billion, setting a record high for the nine-month cumulative period, despite a foreign exchange impact that reduced revenue by approximately ¥32.8 billion. Operating profit declined 23.9% year on year to ¥94.754 billion, due to a foreign exchange impact of approximately ¥7.9 billion, additional costs of approximately ¥12 billion for upfront investment in the development and production launch of traction motor systems (E-Axle) and other products facing rapidly expanding demand, and an approximately ¥3 billion increase in one-time acquisition costs.」

「For the six months ended the second quarter, consolidated revenue from continuing operations declined 0.6% year on year to ¥751.277 billion, while operating profit declined 35.3% to ¥62.207 billion.」

「For the three months ended the first quarter, consolidated revenue from continuing operations declined 3.0% year on year to ¥360.874 billion, while operating profit declined 38.8% to ¥27.959 billion.」

「Consolidated revenue for the fiscal year rose 2.0% year on year to ¥1,518.320 billion, setting a new record high. Operating profit declined 16.9% to ¥138.620 billion, due to approximately ¥38.8 billion in one-time costs, including structural reform costs from consolidating and reorganising domestic and overseas plants and sites, startup losses for new products and M&A expenses.」

「For the nine months ended the third quarter, consolidated revenue rose 4.4% year on year to ¥1,154.306 billion and operating profit rose 2.5% to ¥129.367 billion, with both reaching record highs for the nine-month cumulative period, despite recording approximately ¥15 billion in one-time costs, including structural reform costs from consolidating and reorganising domestic and overseas plants and M&A expenses. Profit before tax rose 10.6% to ¥131.298 billion and profit for the nine months attributable to owners of the parent rose 9.8% to ¥103.214 billion, with both also reaching record highs for the nine-month cumulative period.」

「For the six months ended the second quarter, consolidated revenue rose 8.6% year on year to ¥777.604 billion and operating profit rose 20.1% to ¥98.237 billion, with both reaching record highs for the six-month cumulative period. Profit before tax rose 29.7% to ¥98.267 billion and profit for the quarter attributable to owners of the parent rose 32.1% to ¥78.510 billion, with both also reaching record highs for the six-month cumulative period.」

「For the three months ended the first quarter, consolidated revenue rose 11.9% year on year to ¥383.765 billion and operating profit rose 20.0% to ¥46.641 billion, with operating profit reaching a record quarterly high. Profit before tax rose 29.8% to ¥46.941 billion and profit for the quarter attributable to owners of the parent rose 33.0% to ¥37.353 billion, with both also reaching record highs.」

「Consolidated revenue for the fiscal year rose 24.1% year on year to ¥1,488.090 billion, setting a new record high. Despite structural reform costs for consolidating and reorganising component production sites in Japan and overseas as part of the business portfolio transformation, increased development personnel to support future growth and a temporary increase in M&A expenses, operating profit rose 20.3% to ¥167.637 billion, also setting a new record high.」

「For the nine months ended the third quarter, consolidated revenue rose 27.4% year on year to ¥1,105.921 billion and operating profit rose 19.7% to ¥127.127 billion, with both reaching record highs for the nine-month cumulative period. Profit before tax rose 11.1% to ¥119.723 billion and profit for the nine months attributable to owners of the parent rose 16.1% to ¥94.763 billion, with both also reaching record highs for the nine-month cumulative period.」

「For the six months ended the second quarter, consolidated revenue rose 26.9% year on year to ¥715.890 billion and operating profit rose 19.8% to ¥82.612 billion, with both reaching record highs for the six-month cumulative period. Profit before tax rose 15.6% to ¥76.630 billion and profit for the quarter attributable to owners of the parent rose 19.9% to ¥60.074 billion, with both also reaching record highs for the six-month cumulative period.」

「For the three months ended the first quarter, consolidated revenue rose 24.2% year on year to ¥343.091 billion and operating profit rose 23.8% to ¥39.022 billion, with both reaching record quarterly highs.」

「Revenue reached a record high for the period, and operating profit, profit before tax and net income also each reached record highs.」

「Against this backdrop, the Group is pursuing a profitable growth strategy toward the ¥2 trillion revenue target and 15% operating margin set out in “Vision 2020,” and operating profit, profit before tax and net income each reached record highs on a nine-month basis for the nine months ended the third quarter.」

「Against this backdrop, the Group is pursuing a profitable growth strategy toward the ¥2 trillion revenue target and 15% operating margin set out in “Vision 2020,” and operating profit, profit before tax and net income each reached record highs for the six-month cumulative period. In addition, for the three months of the second quarter, margins continued to improve in automotive and appliance, commercial and industrial products, which are driving the transformation of the business portfolio, and operating profit, profit before tax and net income each reached record quarterly highs.」

「Operating profit for the first quarter exceeded that of the third quarter of fiscal 2015, setting a new record high.」

「Revenue increased for the fourth consecutive period and reached a record high, while operating profit, profit before tax and net income attributable to the Company’s shareholders each increased for the third consecutive period and reached record highs.」