In its consolidated financial results for the fiscal year ending March 2026, released on the 30th, Nidec reported that losses tied to accounting fraud came to more than 600 billion yen, far exceeding its earlier estimate. The impairment loss, which the company had projected at around 250 billion yen as of April, ballooned to 632 billion yen, and the auditing firm declined to express an opinion on the consolidated financial statements for the period, saying it could not obtain sufficient and appropriate audit evidence, marking the second consecutive fiscal year of a disclaimer of opinion. The reason for the sudden resignation of former President Koya Kishida on the 29th, the day before, remains unclear, and the company held no press conference that day. Nidec has been designated a special attention stock by the Tokyo Stock Exchange, and with the deadline at the end of October approaching for submitting a confirmation document on its internal control system in order to have that designation lifted, the company is considering selling an electronic components subsidiary to strengthen its financial base. However, if its governance framework and other measures are judged insufficient, delisting could become a real possibility. Ryoji Kaida, a senior managing executive officer, has emerged as a candidate to succeed Kishida and is scheduled to hold a press conference on October 1, but he will inevitably face difficult steering toward a fundamental turnaround.
Nidec CorporationAccounting-fraud losses ballooned to 632 billion yen, auditor issued a second consecutive disclaimer of opinion, and delisting risk looms.
