Nidec Corp Stock Price, News & Analysis

Nidec Corporation (OTC: NJDCY) has announced a new share repurchase plan, authorized by its Board of Directors on January 24, 2023. The plan allows for the repurchase of up to 5 million shares, amounting to 35 billion yen, representing approximately 0.87% of total shares issued. The repurchase period extends from January 25, 2023, to January 24, 2024. This initiative is aimed at enhancing agile capital management in response to the evolving business landscape. As of December 31, 2022, the company had 574,760,302 shares issued, with 21,524,166 shares held in treasury.

Nidec Corporation (OTC US: NJDCY) has reported its consolidated financial results for the period from April 1, 2022, to December 31, 2022. The company achieved record net sales of ¥1,699.7 billion, an increase of 20.8% year-over-year. However, operating profit fell 6.8% year-over-year to ¥124.4 billion. Notably, profit before income taxes and profit attributable to owners rose 9.7% and 4.8%, respectively, both at record levels. Due to market challenges, Nidec announced structural reform expenses and revised its full-year outlook. The company is initiating WPR-X, aimed at enhancing profitability and achieving a V-shaped recovery in FY2023.

Nidec Corporation has revised its IFRS-based consolidated financial forecasts for the year ending March 31, 2023. The updated forecast estimates net sales at ¥2,200,000 million, an increase of 4.8% from the previous forecast of ¥2,100,000 million. However, operating profit is expected to decline significantly to ¥110,000 million, down 47.6% from a prior forecast of ¥210,000 million. The revision is attributed to declining shipments in IT equipment and home appliances, a delayed automotive production recovery, and a slump in demand for EV-related products due to supply chain disruptions in China.

Nidec Corporation (OTC US: NJDCY) has initiated legal action against Diamond, Inc. following defamation claims made in multiple publications, including Diamond Online and Diamond Weekly. The lawsuit was filed on January 24, 2023, at the Tokyo District Court, seeking damage compensation, removal of false articles, and apology advertisements. The defendants are accused of making unfounded claims regarding executive dismissals and staffing issues within Nidec. The company regards these reports as false and damaging to its reputation and is committed to upholding business practices in accordance with legal standards.

Nidec Corporation (TSE: 6594; OTC US: NJDCY) has announced a share exchange agreement to make Nidec OKK Corporation (TSE: 6205) a wholly owned subsidiary. The share exchange is set to be effective on March 1, 2023, following shareholder approval scheduled for February 15, 2023. Nidec will utilize a simplified process as outlined in the Companies Act, without requiring its shareholder approval. Nidec OKK's shares are expected to be delisted from the Tokyo Stock Exchange on February 27, 2023, ahead of the share exchange's effective date.

Nidec Corporation has successfully established a joint venture with FREYR Battery to produce battery modules and packs for energy storage solutions. Named Nidec Energy AS, this venture is located in Oslo, Norway, with a production base in Mo i Rana, Norway. Expected to start mass production in 2025, the joint venture aims to manufacture over 8 GWh of battery capacity annually by 2027, increasing to 12 GWh by 2030. This partnership leverages FREYR's advanced battery technology and Nidec's expertise in energy systems, with an estimated investment of over $127 million by 2030.

Nidec Corporation (TSE: 6594; OTC US: NJDCY) announced the acquisition of Italian machine tool manufacturer PAMA and its nine affiliates on November 30, 2022. The acquisition aims to create synergies in production, sales, and product development, enhancing Nidec's presence in the machine tool market. This strategic move follows Nidec's earlier acquisitions of Mitsubishi Heavy Industries Machine Tool Co. and OKK Corporation. The Stock Acquisition is projected to have no significant financial impact for the fiscal year ending March 31, 2023.

Nidec Corporation has filed a civil lawsuit against Toyo Keizai Inc. and associated individuals for defamation. The lawsuit, submitted to the Tokyo District Court on October 24, 2022, demands an apology advertisement, damage compensation, and removal of a false article claiming insider trading related to Nidec's acquisition of treasury stock. Nidec asserts the article misinterprets regulations from the Financial Services Agency, which maintains that such acquisitions do not constitute insider trading if no insider information is present. The company aims to protect its reputation and clarify the truth.

Nidec Corporation (OTC US: NJDCY) reported its financial results for the six months ending September 30, 2022, showing a significant increase in key metrics compared to prior forecasts. Net sales reached 1,130,767 million yen, exceeding expectations by 180,767 million yen or 19%. Operating profit was 96,368 million yen, slightly above the forecast by 1,368 million yen, while profit before income taxes surged to 118,375 million yen, marking a 27.3% increase. The favorable results were attributed to a greater-than-expected depreciation of the yen against the US dollar and euro.