TOKYO (dpa-AFX) - Nidec Corp. (NJDCY.PK), a Japan-based manufacturer of electric motors as well as related components and equipment, announced a downward revision to its IFRS-based consolidated full-year financial forecasts for the year ending March 31, 2019. The company is seeing an adverse ripple effect of the current US-China trade friction on its operations in many countries, particularly in China.
The company has experienced a decline in customer demand beyond its prior expectations and the resulting inventory adjustments since last fall. Given the weaker market conditions, the company decided to revise its net sales forecast downward by 150 billion yen to 1.450 trillion yen.
Operating profit forecast is revised downward by 50 billion yen to 145 billion yen, assuming a 40 billion yen decrease on the lower sales prospect and a total of 24 billion yen for measures including a write-off of obsolete production facilities and inventory and completion of ongoing M&A deals, in the second half of the year ending March 31, 2019.
The company now expects annual profit attributable to owners of the parent to be 112 billion yen or 379.91 yen per basic share, compared to the prior outlook of 147 billion yen or 498.63 yen per basic share.
Copyright RTT News/dpa-AFX