By Kosaku Narioka


Nidec Corp. posted a fourth-quarter net loss as its bottom line was hit by restructuring expenses for its electric-vehicle motor business as severe competition disrupts the Chinese EV market.

The Japanese maker of electric motors Tuesday posted a net loss of 20.49 billion yen ($132.3 million) for the three months ended March, compared with a Y59.11 billion net loss in the same period a year earlier.

The net loss was worse than market expectations as earnings took a hit from about Y59.8 billion in expenses for restructuring its EV traction motor business.

Fourth-quarter revenue rose 9.3% from a year earlier to Y593.51 billion.

Saddled with restructuring costs, its automotive products segment lost Y53.66 billion, deeper than Y39.73 billion loss in the year-earlier period.

The company said while global auto production is gradually recovering, there has been excessive price competition among EV makers in China, Nidec's primary market for EV motors.

Operating profit increased for all other segments. Nidec's operating profit from its biggest segment--appliance, commercial and industrial products--climbed to Y28.89 billion from Y11.89 billion a year earlier.

Nidec projected that net profit in the current fiscal year that began April would increase 32% to Y165.00 billion as revenue is expected to grow 2.2% to Y2.400 trillion.

Nidec noted that generative artificial intelligence is creating new business opportunities. The company plans to significantly increase production capacity for water-cooling equipment for data centers that power generative AI, it said.


Write to Kosaku Narioka at kosaku.narioka@wsj.com


(END) Dow Jones Newswires

04-23-24 0418ET