Nidec Flags ¥139.7 Billion Hit and Possible Impairments as Probe Widens

Nidec ( (JP:6594) ) has shared an announcement.

Nidec has disclosed a summary of a Third-Party Committee’s investigation report into trade and customs issues involving NIDEC FIR INTERNATIONAL S.R.L. and related matters, following completion of confidentiality reviews. The company is also updating stakeholders on parallel internal investigations conducted with external experts and has obtained board and audit committee approval for personnel measures and future initiatives aimed at revitalizing its operations.

The investigation, which remains ongoing, indicates a provisionally estimated negative impact of about JPY 139.7 billion on consolidated net assets as of the end of the first quarter of fiscal 2025, with final figures to be provided later. Nidec also warns that additional impairment losses on goodwill and fixed assets, potentially affecting around JPY 250 billion mainly tied to its automotive business, may arise as derivative impacts of profit revisions, and it plans to revise and implement an internal improvement plan and report to the Tokyo Stock Exchange while apologizing to shareholders and stakeholders.

The most recent analyst rating on (JP:6594) stock is a Buy with a Yen2721.00 price target. To see the full list of analyst forecasts on Nidec stock, see the JP:6594 Stock Forecast page.

More about Nidec

Nidec Corporation is a Japan-based manufacturer best known for its electric motors and related drive technologies, serving sectors such as automotive, industrial equipment, consumer electronics, and broader precision machinery markets. The company operates globally, with its shares listed on the Tokyo Stock Exchange, and pursues growth through acquisitions and expansion in high-value motor and drive systems.

Average Trading Volume: 6,637,787

Technical Sentiment Signal: Sell

Current Market Cap: Yen2677.8B

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