Cuts operating f39;cast to 180 bln yen from 220 bln yen
Q3 operating profit up 91 yy at 53 bln yen

TOKYO, Jan 24 Reuters Japanese electric motor maker Nidec Corp slashed its fullyear operating profit forecast by nearly a fifth on Wednesday, warning of uncertainty in demand and intensifying price competition in China39;s electric vehicle market.

The Kyotobased manufacturer cut its operating profit forecast for the financial year to March 31 by 18 to 180 billion yen 1.22 billion, versus an average forecast of 219.7 billion yen by 18 analysts surveyed by LSEG.

Thirdquarter operating profit nearly doubled to 53.6 billion yen, compared to 28.0 billion yen a year earlier. That was slightly lower than a 55.6 billion yen average profit in a survey of eight analysts by LSEG.

Nidec has invested heavily in developing and manufacturing an eaxle traction motor that combines an EV39;s gear, motor and powercontrol electronics, and is keen to expand the business in China and parts of Europe.

The company said in presentation materials it expected to book expenses for structural reforms of its battery EV business before improving the segment39;s profitability.

It aims to improve its battery EV business in China through limiting unprofitable orders and localising product development and procurement, it said.

1 147.9500 yen

Reporting by Daniel Leussink; Editing by Tom Hogue and Kim Coghill

Source Reuters