TOKYO (Reuters) – Japanese electric motor maker Nidec Corp on Monday posted a 16% rise in second-quarter operating profit, setting a record, as it passed on higher prices to customers, reduced costs and benefited from a weaker yen.
The Kyoto-based company reported 51.71 billion yen ($347.21 million) in operating profit for the three months through September, just short of a 52.3 billion yen average of five analyst estimates, according to Refinitiv data.
A year earlier, it earned 44.59 billion yen.
Nidec has been mired in management turmoil this year, with founder Shigenobu Nagamori returning to the role of chief executive in April after demoting Jun Seki, a former Nissan Motor Co Ltd executive he hired to lead the company, due to disappointing earnings and share performance.
Nidec’s shares dipped 2.9% during the second quarter and have dropped 41.1% this year so far. It finished Monday trading in Tokyo up 2.9%, outperforming the Nikkei 225 stock price average, which was up 0.3%.
Seki, who also held the role of president, left Nidec last month and the company plans to choose the next president from among company insiders in the spring of 2024.
Nidec’s automotive products unit, which had been led by Seki, has been under pressure this year, hit by COVID-19 lockdowns, a global chip shortage as well as high restructuring expenses and development costs.
The unit booked a profit of 5.5 billion yen in the second quarter, turning around from 32 million yen in loss in the second quarter, due to a weak yen and cost reduction in “e-axle” electric car motors.
The company kept its full-year operating profit forecast of 210 billion yen for the year ending March 31. That compared with the 211 billion yen average of 21 analyst forecasts.
Separately, Nidec said it filed a lawsuit on Monday against Toyo Keizai magazine for libel.
In a statement, it refuted the magazine’s report alleging the company may have engaged in inappropriate handling of share buybacks, saying it was suing the publisher, editor-in-chief of Toyo Keizai online, a reporter and an author for damages, a retraction and an apology.
A Toyo Keizai spokesperson told Reuters the publication stands by its story.
Nagamori is Nidec’s top shareholder with an 8.3% stake, according to Refinitiv data.
($1 = 148.9300 yen)
(Reporting by Satoshi Sugiyama; Editing by Chang-Ran Kim and Christopher Cushing)
