Japan’s Nidec lifts annual revenue outlook after first quarter

Japanese electrical motor maker Nidec raised its full-year working revenue forecast by 4.3% on Tuesday off the again of a restoration in demand for exhausting drive motors amid efforts to lift its profitability and a weaker yen.

The firm raised its expectations for working revenue within the monetary yr to the tip of March 2025 to ¥240 billion ($1.53 billion), versus an earlier forecast of ¥230 billion and a median analyst view of ¥246.9 billion.

Operating revenue for the April-June quarter totaled ¥60.3 billion, largely in step with ¥60.2 billion in the identical interval a yr earlier and in contrast with the common estimate of ¥58.4 billion in a survey of 4 analysts by LSEG.

“Nidec expects speedy demand growth of energy mills that are important to knowledge facilities,” the corporate mentioned in an announcement.

It mentioned it noticed demand for exhausting drive disk motors recovering and that for water-cooling modules for synthetic intelligence increasing quickly.

The firm mentioned final month its enterprise in water-cooling modules for generative AI knowledge facilities might develop to ¥1 trillion in gross sales sooner or later.

Nidec individually introduced it signed a memorandum of understanding on Monday with Tata Elxsi, an Indian expertise service supplier, to develop software program packages for India and different markets.

Previously, the corporate made a giant guess on parts for electrical automobiles, however has been going through headwinds in that market in current months as a consequence of demand uncertainty and heavy value competitors in China.

Nidec reported the outcomes after it revised down its working revenue for the monetary yr resulted in March 2024 and the one earlier than that after figuring out that some gross sales had been “recorded in an inflated method” at a subsidiary.