Nidec Corporation (formerly Nippon Densan) announced that it has downwardly revised its consolidated operating profit forecast for the fiscal year ending March 2024. This is due to a restrained outlook for the growth of electric vehicles (EVs) in the Chinese market, an area heavily prioritized by founder and CEO, Shigenobu Nagamori.

The newly disclosed forecast for consolidated operating profit, following new accounting standards, was lowered from the previous 220 billion yen to 180 billion yen. Moreover, the final profit prediction was also downwardly revised from 165 billion yen to 135 billion yen (three times the previous year’s figure), causing a reevaluation of a predicted record-high profit for the first time in two years.

Regarding sales, the forecast was upwardly revised from 2.2 trillion yen to 2.3 trillion yen. However, due to the downward revision of the profit outlook, Nidec’s share price on the Tokyo Stock Exchange fell by over 6% from the previous business day to 5,534 yen at one point on the 25th.

On the same day, Nidec simultaneously announced an increase in dividend forecasts and the establishment of a treasury stock acquisition framework. However, since growth in the EV market had been expected, the downward revision has given a significant shock to the market.