Nidec Corp. cut its profit outlook for the year ending March 31, 2020, after attributable profit fell 41.3% on a yearly basis in the second fiscal quarter.
Nidec, which manufactures motors and other electronic products, is expecting basic earnings of ¥339.80 per share for the fiscal year, down from the previous projection of ¥458.73 per share. The company lowered its guidance for profit attributable to owners of the parent to ¥100.00 billion from ¥135.00 billion and the operating profit to ¥150.00 billion from ¥175.00 billion.
The company attributed the outlook revision to increased start-up costs for automotive-related products and a total loss of ¥19.96 billion during the six months ended Sept. 30, 2019, from the sale of Secop refrigeration compressor business.
Nidec raised its annual dividend projection to ¥115.00 per share from ¥110.00 per share.
Nidec posted profit attributable to owners of the parent of ¥24.15 billion for the second fiscal quarter, down from ¥41.14 billion a year ago. The company's EPS came in at ¥82.07, down from ¥139.50 in the prior-year period.
Net sales in the second fiscal quarter grew 1.9% year over year to ¥390.40 billion.
As of Oct. 22, US$1 was equivalent to ¥108.54.