Nidec Reports Solid Growth In Q1 Net Sales, Operating Profit

Nidec Corporation (OTC:NJDCY) reported first-quarter net sales growth of 32.8% year-over-year to ¥447.5 billion. Basic earnings per share for the quarter improved to ¥57.14 from ¥34.24 a year ago.
Profit attributable to owners of the parent increased 66.8% Y/Y to ¥33.45 billion.
Net sales by category: Small precision motors ¥101.31 billion (-3% Y/Y), Automotive products ¥97.75 billion (+72.1% Y/Y), Appliance, commercial and industrial products ¥186.43 billion (+49% Y/Y), Machinery ¥44.56 billion (+25% Y/Y), Electronic and optical components ¥16.42 billion (+16.5% Y/Y), and other products ¥917 million (+22.3% Y/Y).
The gross margin for the quarter improved to 22.3%.
Operating profit increased by 60.3% Y/Y to ¥44.6 billion, and the margin expanded by 170 bps to 10%, reflecting enhanced profitability through the WPR4 program implemented since FY20 and sales recovery.
Net cash provided by operating activities for the quarter was ¥23.05 billion, compared to ¥22.43 billion a year ago.
The company had cash and cash equivalents of ¥173.62 billion as of June 30, 2021.
Outlook: The company expects six-month net sales of ¥800 billion, operating profit of ¥80 billion and a basic EPS of ¥102.44.
The company anticipates FY net sales of ¥1.7 trillion, operating profit of ¥180 billion, and basic EPS of ¥239.02.
Price action: NJDCY shares closed higher by 1.45% at $29.29 on Tuesday.