Nidec operating profit plunges 82.5% amid accounting investigations

Nidec Corporation announced its financial results for the first half of the fiscal year ending March 2026, with consolidated net sales of JPY 13.023 bn, a modest 0.7% increase year-over-year. Sales grew in the automotive, appliance, commercial, and industrial sectors, though the machinery and equipment business struggled. Operating profit, however, saw a substantial decline of 82.5% to JPY 211 bn, primarily due to contract fulfillment costs, impairment losses in the automotive business, and settlement costs for supplier claims.

The company also highlighted ongoing investigations by a third-party committee into alleged accounting improprieties and the receipt of a disclaimer of opinion on the review report from its accounting auditor. The negative impact from specific factors within the automotive product group was recognized as a subsequent event in the first fiscal quarter.

In response to these challenges, Nidec has initiated several measures, including establishing a Nidec Regeneration Committee and implementing various compliance and governance reforms. The company plans to submit a revised improvement plan by late January 2026 and aims for a review of its designated status by October 2026, following the submission of an internal control system confirmation report.