One year has passed since founder Nagamori Shigenobu (永守重信) left. Accounting and quality irregularities have come to light at Nidec, which has disclosed massive impairment losses and losses while undergoing a review following its designation as a security under special alert.
In its consolidated results for the fiscal year ending March 2026, Nidec recorded massive losses, reflecting accounting and quality irregularities. Net income turned negative, while operating income also fell into a substantial loss. Although founder Nagamori Shigenobu (永守重信) had previously stepped away from the center of management, issues with the management structure became apparent.
At a press conference immediately after the earnings announcement, the new president attributed the impairment losses to excessive capital investment in the past and deteriorating supply and demand, and pointed to the reality that matters including unrecorded inventory valuation losses had been deferred. The findings of the third-party committee's investigation also indicated that years of top-down management and excessive pressure to meet performance targets lay behind the issues.
Following the special alert designation, a policy was announced to review improvements to the internal management system over approximately one year. If the improvements are not deemed sufficient, the company could face delisting. PwC Japan's audit report resulted in a disclaimer of opinion for the second consecutive year, leaving concerns about the reliability of the accounting processes.
As part of a business review, the company announced the sale of its electronic components subsidiary Nidec Components to Carlyle for a transfer price of ¥102.98 billion. This indicated an intention to shift away from its expansion strategy.