Nidec: Fiscal 3Q15 Financial Results

Nidec Corp. published its financial results for the three and nine months ended December 31, 2015.

The firm recorded its highest nine months net sales and net income. Net sales and operating income increased for eight and eleven consecutive quarters, respectively.

The Japanese company specializes and handles motor application products based on ‘everything that spins and moves,’ centering around a motor business that comprises an expansive product line from small precision to supersized motors.

Here what is interesting concerning storage is that Nidec is the largest supplier of spindle motors for hard disk drives with a 85% market share in the world, in front of other Japanese companies Minebea and Matsushita Kotobuki Electronics Industries, and then the result of this business and the company’s comments can give a good idea of the global HDD market as there is one spindle motor in each HDD.

Revenue of  Nidec’s HDD spindle motors

Net sales of spindle motors for the nine-month period increased 9.2% to ¥162,454 million compared to the same period of the prior year, although the number of units sold decreased 7% compared to the same period of the prior year.

Net sales of these devices for 3FQ15 decreased 2% to ¥55,648 million, compared 2FQ15. The number of units sold also decreased, 4% sequentially. It means that probably the financial results of Seagate and WD to be released this week will be disappointing, as well as for Toshiba. Already Trendfocus projects HDD shipments to dip slightly sequentially in 4CQ15, -2% to -3% Q/Q, and -17% to -18% Y/Y.

click to enlarge
HDD market trend (previous and revised)
Nidec’s market position edge up while total HDD demand remain weak

(Nidec’s estimates based on various sources)

To read the earnings call transcript