Nidec Plunges 18% on ¥1T Impairment and CEO Dismissal
NJDCY has more than doubled off its 52-week low of $1.839 on light trading volume (0.1× avg).
Summary
Nidec shares crashed 18% to ¥2,405.0 after reports that the company is considering a ¥1T ($6.3B) impairment charge—the largest in its history—and has decided to dismiss President and CEO Mitsuya Kishida, with an official announcement expected September 29. The company confirmed the reports are factually grounded, stating that management restructuring and large-scale asset write-downs are under review. The impairment would wipe out net profits from the past decade, following probes that uncovered over 1,000 accounting improprieties and 844 quality-control misconduct cases. Nidec has already been dropped from the Nikkei 225 and faces heightened delisting risks. This is a major governance and financial crisis that fundamentally changes the investment thesis.
At the time of this announcement, NJDCY was trading at $4.47 on OTC in the Industrial Applications And Services sector, with a market capitalization of approximately $20.7B. The 52-week trading range was $1.84 to $5.00. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Seeking Alpha.