Nidec Corporation reported Q1 FY2025 results with a slight decline in net sales, but an increase in operating profit driven by higher demand in specific segments.
- Net sales decreased by 1.6% year-over-year to JPY 637.9 billion; operating profit increased by 2.3% to JPY 61.5 billion.
- Strong performance in small precision motors, driven by demand for HDD motors and AI cooling solutions, contributing to profit growth in this segment.
- Challenges in automotive and automation segments due to currency fluctuations and ongoing structural reforms, impacting profitability.
- Free cash flow remained low at plus JPY 9.8 billion; emphasis on controlling operating capital and inventory to enhance cash generation.
- Financial forecasts for the fiscal year remain unchanged despite short-term fluctuations and restructuring efforts.
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