Nidec (TYO:6594) swung to a loss in the fiscal year ended March 31 as the motor manufacturer logged impairments amid an accounting scandal that triggered an audit disclaimer and prompted a change in leadership.
The company logged an attributable net loss of 564.6 billion yen compared with a profit of 84.7 billion yen a year earlier, according to delayed financial results filed with the Tokyo Stock Exchange on Thursday. Loss per share was 492.55 yen, compared with earnings per share of 73.69 yen a year earlier.
Net sales rose 3.9% year over year to 2.709 trillion yen from 2.606 trillion yen.
Nidec disclosed its financial results late as it needed to complete a third-party committee investigation into widespread improper accounting practices.
PricewaterhouseCoopers Japan then issued a disclaimer of opinion on the internal control report. It was also unable to obtain sufficient appropriate audit evidence to express an opinion on Nidec's consolidated and non-consolidated financial statements for the fiscal year.
The probe unearthed improper accounting practices, including premature revenue recognition, understated provisions, overstated inventories, avoided impairment losses on fixed assets, and improperly capitalized expenses.
The misstatements include impairment estimates of 632.2 billion yen, with the auditor warning that prior-period restatements could be "material and pervasive." According to its belated earnings report, impairments reached 632.1 billion yen during the fiscal year. Extraordinary losses reached 330.9 billion yen, while extraordinary gains were at 54.3 billion yen.
President and CEO Mitsuya Kishida stepped down Tuesday. The motor manufacturer plans to improve governance and risk management, reform its corporate culture and compliance, and improve its accounting and audit functions to address material weaknesses in its internal controls, it said Thursday.
For fiscal 2027, the company expects an attributable profit of 100 billion yen, EPS of 87.23 yen, and revenue of 2.8 trillion yen.
Nidec's shares fell 2% during recent trade and 13% over the last five days.