updated 3/18/2011 2:47:04 AM ET 2011-03-18T06:47:04

KYOTO, Japan, March 18, 2011 (GLOBE NEWSWIRE) -- Nidec Corporation (NYSE:NJ) today announced that one of its consolidated subsidiaries, Nidec Copal Corporation ("Nidec Copal") (Tokyo Stock Exchange 1st Section: 7756), has revised its financial forecast for the year ending March 31, 2011.

The details are as follows.

1. Revised Consolidated Financial Forecast (Japanese GAAP) for the Year Ending March 31, 2011

From April 1, 2010 to March 31, 2011 (Millions of yen, except per share amounts and percentages)
  For the year ending March 31, 2011 For the year ended 
  Previous forecast  Revised forecast  Change March 31, 2010
  (Apr. 26, 2010)  (Mar. 18, 2011) Amount % (Reference)
Net sales 73,000 73,500 500 0.7 65,062
Operating income 9,000 8,500 (500) (5.6) 5,903
Recurring income   8,800 7,600 (1,200) (13.6) 5,915
Net income  4,950 2,400 (2,550) (51.5) 3,888
Earnings per share  78.75 38.18 - - 61.87

2. Reasons for Revision

Nidec Copal now expects lower full-year profits on slightly higher sales for the year ending March 31, 2011, primarily reflecting a harsh pricing environment in the compact digital camera market and the resulting cost pressures on the company's production and development operations, most notably for specialty lens units. Nidec Copal's production of specialty lens units had continued at record levels until halfway through the fiscal year 2010 and then suddenly slowed down in the third quarter as the customers started switching over to new product lines.

Given the foregoing circumstances, Nidec Copal has resolved at a meeting of its Board of Directors held today to discontinue its specialty lens units operations so that the freed-up resources can be redirected to potential growth areas, such as high-performance digital optical units for digital single-lens reflex cameras and handheld devices, as well as for industrial and security applications. Nidec Copal estimates a Japanese GAAP-based loss on disposal of the discontinued operations at approximately 3.5 billion yen.  

Disclaimer Regarding Forward-looking Statements

This press release material contains forward-looking statements including expectations, judgement, plans, and strategies. The forward-looking statements are based on management's assumptions and belief in light of the information currently available. Certain risks, uncertainties and other factors could cause actual results to differ materially from those discussed in the forward-looking statements. Such factors include, but are not limited to: fluctuation of currency exchange rates, overall supply and customer demand in the motor industry, product development and production capabilities, performance of affiliated companies, and other risks and uncertainties. Nidec undertakes no obligation to update forward-looking statements to reflect events or circumstances that occur after the date the statements are made.

The Nidec Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=1734

CONTACT: Masahiro Nagayasu
         General Manager
         Investor Relations

© Copyright 2012, GlobeNewswire, Inc. All Rights Reserved


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