Niterra will exit and sell its U.S. automotive parts business, Wells Vehicle Electronics. Although approximately ¥15 billion in operating expenses will be recorded for the fiscal year ending March 2027 in connection with the sale, net income is expected to increase by approximately ¥3 billion due to lower corporate taxes and other effects.
Niterra acquired Wells, a U.S. automotive parts manufacturer, in 2015 in an effort to expand its U.S. business, but the business continued to struggle amid rapid changes in market conditions. The sale follows the decision to exit the business. It was completed on the 7th, U.S. time, to a subsidiary of a local company.
In connection with the sale, approximately ¥15 billion in operating expenses are expected to be recorded in the consolidated results for the fiscal year ending March 2027, including losses on the sale and provisions related to the exit. However, the reduction in corporate taxes and other expenses is expected to outweigh the increase in expenses, resulting in an approximately ¥3 billion increase in final consolidated net income.