Nidec Bonds Slump After $3.6 Billion Net Loss

Nidec Corp. saw its yen bonds slump to the lowest rank among more than 3,000 local corporate notes maturing by mid-2032. The bond price dropped to 77.7 yen after the precision motor manufacturer reported a ¥564.6 billion ($3.6 billion) net loss for the fiscal year ending March 31, a result driven by significant writedowns.

Financial instability at the Kyoto-based company is further compounded by an accounting scandal. The company's auditor, PwC Japan, refused to sign off on Nidec's financial statements, raising concerns over the accuracy of its reporting. These combined factors leave the new president of Nidec facing the immediate challenge of restoring investor confidence.