Nidec races to October audit sign-off as new CEO vows to restore trust

Nidec Corp., the Japanese electric motor manufacturer, announced on Wednesday that it aims to obtain audit sign-off for its delayed annual financial report by October, as newly appointed CEO Mitsuya Kishida pledged to restore trust in the company's governance. The move follows the discovery of accounting irregularities that forced Nidec to postpone the release of its earnings for the fiscal year ended March 2024.

The company has been under scrutiny since it revealed in June that it had improperly recognized revenue and overstated profits over several years. Nidec said it has been working with its auditor, Deloitte Touche Tohmatsu, to rectify the issues and expects to finalize the audit by the end of October. Kishida, who took over as CEO in April, stated at a press conference in Kyoto: 'We are committed to transparency and will implement rigorous internal controls to prevent recurrence. Restoring trust is my top priority.'

The delay has raised concerns among investors and could impact Nidec's relationships with customers and suppliers. The Tokyo Stock Exchange has placed Nidec's shares under supervision, and the company faces potential penalties from regulators. Analysts suggest that a timely audit sign-off is crucial for Nidec to regain market confidence and avoid further reputational damage. The company's next steps include a comprehensive review of its accounting practices and enhanced corporate governance measures.