Nidec Update: Audit Disclaimer, Accounting Probes Worsen Losses

Nidec Corporation announced a disclaimer of conclusion on its condensed quarterly consolidated financial statements for the three months ended June 30, 2025, from PricewaterhouseCoopers Japan LLC. The audit firm cited ongoing investigations into suspected inappropriate accounting treatments, including arbitrary adjustments to asset write-downs. A Third-Party Committee was established on September 3, 2025, to investigate these issues.

Concurrently, Nidec reported recording significant provisions and impairment losses for the fiscal year ending March 2026. These include a provision of JPY 36,471 million for contract losses in the AMEC segment, JPY 31,674 million in impairment losses on non-financial assets, and JPY 19,495 million in indemnification liabilities related to supplier claims in the MOEN segment. These adjustments caused a substantial change from preliminary results, including a decrease of JPY 87,857 million in operating profit and JPY 86,722 million in profit before income taxes for Q1 FY2026.

The company stated that the investigations are ongoing, and any identified misstatements could have a material impact on the financial statements. Nidec expressed serious concern and apologized to stakeholders.