Nidec Corp.'s shares declined Jan. 18 as the Japanese electronics manufacturer revised its annual earnings forecast downward, citing "an adverse ripple effect" of the current U.S.-China trade tensions on its operations in many countries.
The company now expects operating profit of about ¥145 billion for the fiscal year ending March 31, down 25.6% from an earlier forecast released Oct. 23, 2018, and down from the ¥166.84 billion recorded a year ago. Profit attributable to owners of the parent is expected to reach ¥112 billion, down 23.8% from the previous forecast of about ¥147 billion and compared with ¥130.83 billion in the fiscal year ended March 31, 2018.
Nidec also downgraded its forecast for net sales by ¥150 billion to ¥1.450 trillion, compared with ¥1.488 trillion in the previous year, owing to a greater-than-expected decline in customer demand.
Nidec shares closed down 1.13% to ¥12,255 apiece in Tokyo on Jan. 18.
As of Jan. 17, US$1 was equivalent to ¥109.04.