Nidec shares plummeted as much as 18% to ¥2,405.0 on Monday after Bloomberg and other major outlets reported on a release by Japanese business publication Diamond Online stating the company is considering a ¥1T ($6.3B) impairment charge that could effectively wipe out its net profits from the past decade. According to the report, the massive write-down would be recorded for the fiscal year ended March 2026 as the world's largest maker of precision motors tallies the financial fallout from a long-running accounting and governance crisis. The report also noted that Nidec has decided to dismiss President and CEO Mitsuya Kishida, with an official announcement scheduled for September 29. Nidec issued a statement acknowledging that reports regarding executive changes and the ¥1T impairment consideration were factually grounded, confirming that management restructuring and large-scale asset write-downs are under review, though no finalized decisions have been formally disclosed. A ¥1T hit would mark the largest write-down in Nidec's history, following internal and independent probes that uncovered more than 1,000 instances of accounting improprieties alongside 844 cases of quality-control misconduct over the last decade. The company has already been dropped from the Nikkei 225 Index and now faces heightened delisting risks as regulators dig deeper.
Nidec CorporationReported ¥1T impairment charge tied to accounting/governance crisis would wipe out a decade of net profits.
