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TOKYO — Japanese motor maker Nidec on Wednesday reported a net loss of 564 billion yen ($3.6 billion) for the fiscal year ended March this year, after booking massive impairment losses mainly related to its struggling electric vehicle drive business.
The result compared with a net profit of 84 billion yen a year earlier. Revenue rose 4% to 2.7 trillion yen, while the company posted an operating loss of 518.9 billion yen as it booked impairment losses of 632 billion yen.
The impairment losses include 231 billion yen for automotive products and 335.1 billion yen for appliance, commercial and industrial products.
The latest write-down deepens troubles at Nidec, which is already grappling with an accounting scandal, and highlights the cost of its push into e-axles, once positioned as a key growth business.
The company announced in April that it postponed the disclosure of its financial result because the process, including corrections to prior-year financial statements, had been taking time.
Its auditor, PwC Japan, issued a disclaimer of opinion on Wednesday, saying it was unable to obtain sufficient appropriate audit evidence to form an opinion on the consolidated financial statements.
“Some of the executives and employees who made false statements to the auditor held positions of responsibility in the financial reporting process,” PwC Japan said.
Nidec expanded business through investments and acquisitions under founder Shigenobu Nagamori. But profitability deteriorated as growth in the EV market slowed and price competition with Chinese manufacturers intensified.
The company has been moving to stem losses. It has entered talks with China’s Guangzhou Automobile Group (GAC) to dissolve their e-axle joint venture, while former chief executive Mitsuya Kishida had said Nidec wanted to withdraw from the increasingly competitive business.
The earnings announcement comes a day after Nidec replaced Kishida with Chief Technology Officer Michio Kaida, as the motor maker seeks to overhaul its management following the major accounting scandal.
The sudden leadership change follows an investigation into accounting irregularities that began in September last year. An independent committee found multiple cases of misconduct, including attempts to avoid impairment losses and delays in recognizing inventory write-downs.
Kishida, who joined Nidec from Sony in 2022 and became president and CEO in 2024, resigned on Tuesday. He had overseen the automotive business, including e-axles, since becoming CEO.
Nidec said a review found that some of Kishida’s statements and conduct related to financial reporting “could not necessarily be regarded as appropriate.” It said its management should be held to a higher standard of ethical conduct under its new governance structure.
Kaida had helped lead Nidec’s corporate reform efforts, including preparations for a business improvement plan submitted to the Tokyo Stock Exchange.
Despite the scale of Nidec’s expected losses, the company had over 1.7 trillion yen in shareholder equity at the end of September 2025. It also secured commitment lines totaling up to 600 billion yen from MUFG Bank and Sumitomo Mitsui Banking Corp. last November.
