Nidec faces $1 billion hit to net profit following accounting investigation

Nidec

17/04/2026 17:44

TOKYO, April 17 (Reuters) - Nidec 6594.T said on Friday an independent investigation found widespread improper accounting across the Japanese electric motor maker's operations, resulting in a cumulative net loss of 160.7 billion yen ($1.02 billion) through the first quarter of fiscal 2025.

In its report, the third-party committee, established by Nidec in September 2025, said years of excessive pressure to meet profit targets drove the misconduct and distorted financial reporting.

The third-party committee identified "a large number of instances of improper accounting" across a range of sites within the company, affecting results mainly from fiscal 2020 through the first quarter of fiscal 2025, with some effects relating to earlier years.

The committee concluded the misconduct occurred against a backdrop of excessive pressure to meet operating profit and other performance targets under founder Shigenobu Nagamori, who resigned as chairman emeritus in February.

Nidec warned it may need to book additional impairment losses of about 250 billion yen, mainly tied to its automotive business, and said it would revise past financial statements.

Nidec said it takes the investigation report "very seriously" and will promptly revise an improvement plan and status report submitted to the Tokyo Stock Exchange, which placed the company on "special alert" over governance concerns in October.

($1 = 157.7000 yen)

(Reporting by Daniel Leussink, Editing by Louise Heavens and David Gaffen)

((daniel.leussink@thomsonreuters.com; Twitter: @danielleussink;))