Nidec Records Financial Charges Including ¥36.5 Billion in Loss on Contract Provisions
Nidec recorded significant financial charges in the first half of fiscal year ending March 2026, including provisions for loss on contract, impairment losses on non-financial assets, and liabilities from supplier claims .
Key Charges:
Provisions for loss on contract: ¥36.47 billion to cover losses from fulfilling contracts with customers in the AMEC segment (Automotive products) .
Impairment losses on non-financial assets: ¥31.67 billion on certain non-financial assets in the AMEC segment .
Indemnification liability from supplier claims: ¥19.50 billion resulting from an agreement with a supplier in the MOEN segment (Appliance, commercial and industrial products) .
These cases are within the scope of the investigation by the Third-Party Committee, and misstatements on amount, timing of recognition, and notes may be identified . The preliminary Q1 performance values showed a significant difference from the actual Q1 financial results, with operating profit decreasing by ¥87.86 billion .
