KYOTO, Japan, Oct. 24, 2005 (PRIMEZONE) -- Nidec Corporation (the "Company") (NYSE:NJ) (Tokyo Stock Exchange Code:6594) today announced upward revisions of its consolidated and non-consolidated financial forecasts for the six months ended September 30, 2005.
The details are as follows.
1. Revised consolidated financial forecasts (U.S. GAAP) for the six months ended September 30, 2005.
(From April 1, 2005 to September 30, 2005) (Yen in millions)
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For the six months ended September 30, 2005
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For the six
Previous Revised Change Change months ended
Forecast Forecast (amount) (percent) September 30,
(Apr. 25, 2005) 2004
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Net sales 245,000 256,000 11,000 4.5% 236,405
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Operating
income 25,000 25,000 0 0% 24,096
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Net income
before tax 25,000 30,000 5,000 20.0% 27,432
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Net income 15,000 20,000 5,000 33.3% 16,049
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2. Revised non-consolidated financial forecasts (Japanese GAAP) for the six months ended September 30, 2005.
(From April 1, 2005 to September 30, 2005) (Yen in millions)
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For the six months ended September 30, 2005
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For the six
Previous Revised Change Change months ended
Forecast Forecast (amount) (percent) September 30,
(Apr. 25, 2005) 2004
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Net sales 70,000 82,800 12,800 18.3% 59,582
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Operating
income 2,400 4,250 1,850 77.1% 651
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Recurring
income 4,500 12,200 7,700 171.1% 5,909
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Net income 3,500 10,200 6,700 191.4% 4,934
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3. Reasons for revision
The Company's consolidated sales for the six months ended September 30, 2005 exceeded the previous expectation by 4.5% due to brisk demand for its small precision motors including highly profitable hard disk drive motors. Consolidated operating income increased to the extent of recovering the first-quarter losses caused by the customers' inventory adjustments, major uncorrectable receivables and metal price hikes, reaching the previously projected level. An exchange gain of approximately 4.5 billion yen and decreases in minority interest, in addition to the stated operating income increase, are expected to increase consolidated net income by 5.0 billion yen over the previously projected level.
The Company's non-consolidated results accordingly surpassed the previous expectation both in sales and profit. Non-consolidated recurring income increased significantly, reflecting increases in non-consolidated operating income, exchange gain and dividends from subsidiaries. Non-consolidated net income also increased for the stated reasons.
The Company plans to announce a revision of its full-year earnings forecasts on October 28, 2005.
Disclaimer Regarding Forward-Looking Statements
This press release contains forward-looking statements (within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934) about Nidec and its group companies (the Nidec Group). These forward-looking statements are based on the current expectations, assumptions, estimates and projections of the Nidec Group in light of the information currently available to them. These forward-looking statements are subject to various risks and uncertainties. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "may," "will," "expect," "anticipate," "estimate," "plan" or similar words. These statements discuss future expectations, identify strategies, contain projections of results of operations or of the Nidec Group's financial condition, or state other forward-looking information. Known and unknown risks, uncertainties and other factors could cause the actual results to differ materially from those contained in any forward-looking statement. We cannot promise that our expectations expressed in these forward-looking statements will turn out to be correct. Our actual results could be materially different from and worse than our expectations as a result of certain factors, including, but not limited to (i) the Nidec Group's ability to design, develop, mass produce and win acceptance of their products, (ii) general economic conditions in the computer, information technology and related product markets, particularly levels of consumer spending, (iii) exchange rate fluctuations, particularly between the Japanese yen and the U.S. dollar and other currencies in which we make significant sales or in which the Nidec Group's assets and liabilities are denominated, (iv) the Nidec Group's ability to acquire and successfully integrate companies with complementary technologies and product lines, and (v) adverse changes in laws, regulations or economic policies in any of the countries where the Nidec Group has manufacturing operations, especially China.
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