Japan’s Nidec posts first quarterly loss in 10 years

Japanese electric motor maker Nidec Corp (6594.T) on Monday posted its first quarterly operating loss in a decade, hit by hefty restructuring costs and difficulty in procuring semiconductors and other components.

The loss of 24.3 billion yen ($181.01 million) for the January-March quarter compared to an average estimate for a 11.75 billion yen loss in a Refinitiv survey of analysts.

“The business environment surrounding Nidec continues to be severe,” the company said, warning of a delay in the recovery of global automobile production, among other headwinds.

It was also squeezed by a decline in unit growth rate in the electric vehicle (EV) market in China and a peaking of capital investment-related demand, it said in a statement.

Nidec has made a big bet on growth in the EV market, investing heavily in production and development of the e-axle traction motor, which combines an electric vehicle’s gear, motor and power-control electronics.

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