Nidec: Fiscal Year 2014 Financial Results
Hard disk drive motor leader see WW HDD market decling from 2014 to 2020
This is a Press Release edited by StorageNewsletter.com on April 27, 2015 at 3:02 pm(in ¥ million) | FY13 | FY14 | FY15 forecast |
Revenue | 875,109 | 1,028,385 | 1,150,000 |
Growth | 18% | 12% | |
Net income (loss) | 56,272 | 76,126 | 90,000 |
Nidec Corporation reported financial results for its fiscal year ended March 31, 2015.
Summary of FY2014
- Record net sales, operating income, income before taxes and net income
- Reached the one trillion yen mark in net sales and the 100 billion yen mark in operating income for the first time
- Total sales of automotive, appliance, commercial and industrial products surpassed those of small precision motors as a result of the strategic business portfolio transformation
- Total operating income for automotive, appliance, commercial and industrial products crossed 10 billion yen in 4Q
- CB conversion amounted to 74.3 billion yen (78% of total). As a result, debt to equity ratio improved further as the year-end shareholders’ equity ratio rose to 55%, which surpassed the goal of 50% set originally for March 2016
Comments
The company is largely the worldwide leader in spindle motors for hard disk drives since decades and, consequently, its results and expectations on these productts give an excellent idea of the HDD market.
These motors represented 21.2% of the company's global sales in FY13 and 19.8% in FY14. Amount increased yearly 10% to ¥204,141 million compared to the previous fiscal year, although the number of units sold decreased 1% compared to the previous fiscal year. For 4Q14 sales increased 0.2% to ¥55,404 million, compared to 3Q14. Number of units sold decreased 5% quarterly.
Nidec HDD motor shipment outlook
While FY15 HDD shipments are expected to remain flat,
Nidec's market share is estimated to increase.
Nidec sees the worldwide HDD market slowly decreasing from 2014 ro 2020.
HDD market trend
Demand for PC gradually falling while data center application increasing solidly
(Nidec's estimates based on various sources)
HDD playing major role in data storage for big data
Comparison of data storage media
Media | Characteristics (Advantage / Disadvantage) | Application | Judgment |
HDD | High capacity and cost performance / no major disadvantages | Major role in storage | Good |
SSD | High speed access / less competitive in price, capacity and durability | Frequently accessed storage | Fair |
Tape | Data safely stored in the event of catastrophe / not suitable for network connection | Off-line cold storage | Fair |