TOKYO (dpa-AFX) - Nidec Corp. (NJDCY, 6594.T), a Japanese manufacturer of electric motors, announced that it expects to record around 250 billion yen in impairment charges after an investigation found significant accounting misconduct, primarily in connection with the automotive business.
Separately, the company said its Board resolved not to pay a dividend from surplus (year-end dividend) with a record date of March 31, 2026, following the findings of inappropriate accounting treatment.
In Japan, the shares were gaining around 7.7%, trading at 2,440.00 yen.
In a statement, the company noted that the impact on its consolidated net assets as of the end of the first quarter of fiscal year 2025, as provisionally calculated by the Third-Party Committee, is approximately negative 139.7 billion yen.
In addition to the impact amount, the company noted that there is a possibility that additional impairment losses on goodwill and fixed assets may need to be recognized in connection with the corrections to past fiscal years' financial statements.
Further, for the third quarter ended December 31, the company reported preliminary net sales of 6.777 billion yen, up 3.9 percent from 6.522 billion yen a year ago.
The company noted that numerous instances of accounting misconduct have been identified across a wide range of locations within the Group.
Following the report, Chairman Hiroshi Kobe and certain other officials have been resigned, while First Senior Vice President Valter Taranzano has been suspended from duty. Nidec's founder Shigenobu Nagamori last week had relinquished his post as chairman emeritus. Nagamori, who remains Nidec's largest individual shareholder, had left the board in December.
The investigation by the Third-Party Committee and other internal investigations into suspected improper accounting practices are ongoing.
Meanwhile, Nikkei reported that the Securities and Exchange Surveillance Commission is planning to investigate Nidec, including whether additional payments are necessary.
The company in June last year had disclosed accounting issues including subsidiaries in Italy, Switzerland and China, as well as its car inverter business. An independent third-party committee was established in September 2025 to examine the alleged issues including the timing of asset write-downs, among others.
In late January, Nidec announced the delay in disclosing third-quarter results citing the ongoing investigations.
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