Nidec: Fiscal 2Q10 Financial Results

(in ¥ billions)	2Q09	2Q10	6 mo. 09	6 mo. 10
Revenues	145,257	169,991	268,746	340,791
*Growth*		17%		*27%*
Net income (loss)	7,969	13,231	13,788	27,014

Nidec Corporation announced its consolidated results under U.S.GAAP for the fiscal six months ended September 30, 2010.

The highlights are as follows:

Record six-month operating income of 51.5bn yen.
Financial base for mid-term growth bolstered by a 100bn Euro Yen CB issue.
Full-year sales guidance revised upward, reflecting the acquisition of Emerson’s Motors & Controls business.
Diluted EPS for the six months ended September 30, 2010: 193.22 yen

Small precision motors in 2Q10
Net sales of small precision motors decreased approximately ¥4,200 million, or 5%, to ¥83,495 million for this 2Q compared to this 1Q. Unit shipments of our spindle motors for hard disc drives for this 2Q increased approximately 3% compared to this 1Q. However, sales of our spindle motors for HDDs for this 2Q decreased approximately 1% compared to this 1Q. The average unit price on a U.S. dollar basis for this 2Q increased approximately 2% compared to this 1Q. However, the average unit price of spindle motors for HDDs on a Japanese yen basis for this 2Q decreased approximately 5% compared to this 1Q. Our unit shipments of spindle motors for 2.5-inch HDDs for this 2Q increased approximately 11%, but our unit shipments of spindle motors for 3.5-inch HDDs for this 2Q decreased approximately 4%, compared to this 1Q.

Small precision motors in 1H10
Net sales of small precision motors increased approximately ¥12,800 million, or 8%, to ¥171,182 million for this fiscal first half compared to the previous fiscal first half. Unit shipments and sales of our spindle motors for hard disc drives for this first half increased approximately 16% and 7%, respectively, compared to the previous fiscal first half. The difference in the increase rate between 16% and 7% was primarily due to an approximately 7% appreciation of the Japanese yen against the U.S. dollar compared to the previous fiscal first half. The average unit price of spindle motors for HDDs on a U.S. dollar basis for this fiscal first half decreased approximately 1%, compared to the previous fiscal first half. Our unit shipments of spindle motors for 2.5-inch increased approximately 26%, compared to the previous fiscal first half.