Nidec: Fiscal 3Q17 Financial Results

(in ¥ million)	2Q17	3Q17	9 mo. 16	9 mo. 17
Revenues	372,799	390,031	868,228	1,105,921
*Growth*		5%		*27%*
Profit before income taxes	40,222	43,256	107,747	119,723

Nidec Corp. announced financial results for the three and nine months ended December 31, 2016.

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

For the complete fiscal year ending March 31, 2018, the Japanese manufacturer forecasts revenue of ¥1,450,000, million, and profit before income taxes of ¥163,000 million. It targets consolidated net sales of ¥2 trillion for the fiscal year ending March 31, 2021

Here are the comments only on its HDD motor business where the company is the worldwide leader and representing 13% of its global revenue for the most recent quarter.

HDD drives spindle motors

(in ¥ million)	2Q17	3Q17	9 mo. 16	9 mo. 17
Revenues	48,992	50,794	144,040	144,516
*Growth*		4%		0%

Net sales of spindle motors for HDDs increased 3.7% to ¥50,794 million for this 3FQ17 compared to the previous quarter. Although the number of units sold decreased approximately 3% compared to the former three-month period, net sales increased due to an increase of selling price.

Revenue for for more recent nine-month period increased 0.3% to ¥144,516 million compared to the same period of the prior year. Although the number of units sold decreased approximately 9% compared to the same period of the prior year, there was the increase in sales due to a positive effect of the foreign currency exchange rate fluctuations.

Nidec is in an excellent position to analyze the trend in the market of HDDs as each of them needing a spindle motor.

HDD Market Short-Term Trend
Click to enlarge