Nidec shares plunge on report of huge charge

Nidec Corp. shares slumped on September 28, 2026, after reports that the company may recognize a large impairment charge linked to accounting issues. The stock fell as much as ¥500 to ¥2,340, a decline of about 18% from the prior close, with trading volume described as heavy as investors reacted to the news.

The sharp move followed a report that Nidec is expected to book an impairment of about ¥1 trillion, equivalent to roughly $6.3 billion. The reported figure represents a substantial potential hit relative to the company’s recent financial profile and immediately became the focus of market attention.

Reports indicated that the potential impairment charge would be recorded retroactively in the fiscal year that ended in March 2026. The charge is tied to accounting issues, though the reports did not provide a detailed breakdown of the assets or business segments involved.

Earlier in the year, Nidec had flagged the possibility of smaller impairment charges, but the newly reported ¥1 trillion scale significantly exceeded those earlier indications. The size and retroactive nature of the potential adjustment raised questions about the extent of the accounting review now underway.

The same set of reports cited an account that an extraordinary board meeting held on September 25 included a resolution to dismiss President and Chief Executive Officer Mitsuya Kishida. The report did not disclose how the underlying information was obtained, and no official confirmation of the resolution has been released by the company.

In response to the coverage, Nidec said it is considering both executive changes and a large-scale impairment process. However, the company emphasized that, as of September 28, no final decisions had been made on either the management structure or the precise scale and timing of any impairment charges.

Nidec’s statement that it is still examining potential board changes and impairment treatment did not immediately calm investor concerns. The combination of a possible ¥1 trillion retroactive charge and uncertainty over top leadership contributed to the steep intraday share-price decline.

The market reaction underscores the sensitivity of investors to both accounting-related adjustments and corporate governance stability. Until Nidec provides formal decisions and detailed disclosures on any impairment and management changes, trading in the shares is likely to remain influenced by updates on the review process.