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Motor maker Nidec cuts profit outlook by 25% as China slump lingers

Big investments in electric cars weigh on earnings

A Nidec factory in China's Zhejiang Province makes traction motors for electric vehicles, an area where the Japanese company seeks a bigger presence. (Photo courtesy of Nidec)

OSAKA -- Japanese precision motor maker Nidec lowered its full-year net profit forecast by a quarter Wednesday on increased investment in electric-vehicle parts and sluggish Chinese demand.

The company cut its forecast for the year ending next March to 100 billion yen ($921 million), representing a 10% year-on-year drop. It had projected a profit increase to 135 billion yen in July.

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