Nidec Earnings: Better Visibility on Traction Motor Turnaround; Fair Value Raised by 10%

Nidec's June-quarter operating income of JPY 60.3 billion exceeded our forecast of JPY 55 billion, but this was due to a one-time net gain of JPY 10.1 billion from the revaluation of its investment in NPe, or Nidec PSA emotors, when it became a consolidated subsidiary, meaning that the underlying business was slightly below our expectations. The operating margins of the machinery segment and the appliance, commercial and industrial products segment were slightly below our forecasts due to restructuring costs, lower prices, and lower capacity utilization. We are maintaining our operating income forecast for fiscal 2024 (ending March 2025) at JPY 250 billion, as the weakness in these segments is offset by one-time gains.