Increased Profit in Small Precision Motors
The small precision motors segment reported increased profit due to expanding demand for HDD motors for nearline and other applications, as well as water cooling modules for AI servers.
Automotive Segment Profit
The automotive segment secured increased profit compared with the prior quarter, particularly in the traction motor business in China.
Structural Reform Efforts
The company is focused on structural reform, cost reduction, and business integration, aiming to reduce variable costs by JPY100 billion and fixed costs by JPY50 billion.
Expansion in Data Center Business
Nidec is expanding its data center business with a new data center in Chiba Prefecture and plans to expand this business globally.
Positive Free Cash Flow
Free cash flow remained positive at JPY9.8 billion for Q1, with ongoing efforts to improve operating capital control.