Gross Margin Decline Due to Construction Market Volatility and Competition for Orders
First written in FY2016. 19 of 32 entries say "Restated". Latest entry: FY2026.
The Kodensha moved to the "Worse" side of this theme in 2020, 1 year after the typical company in this theme (2019).
The whole theme swung hardest in 2020: 28 of 53 companies on the "Worse" side.
13 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「At the same time, domestic and overseas social and economic conditions are changing rapidly and uncertainty about the outlook is increasing further, owing to downside risks to the economy such as inflation and developments in U.S. trade policy, as well as surging crude oil prices resulting from the deterioration of the situation in the Middle East. The markets related to the Company also contain risks such as a decline in willingness to invest in facilities due to inflation.」
While high levels of public- and private-sector investment are cited as positive factors, the disclosure identifies rising prices, trade policy, the situation in the Middle East and crude oil prices, and declining willingness to invest in capital equipment as downside risks, stating that uncertainty about the outlook has intensified. - FY2026-H1RestatedAnnual report
「During the current interim consolidated accounting period, the market environment surrounding our group remained firm, supported by the continued high levels of capital investment and construction investment, particularly by private-sector companies.」
The disclosure states that the market environment remained firm as high levels of capital investment and construction investment continued. It explicitly states that no new business or other risks had arisen and that there had been no significant changes. - FY2025-H1RestatedAnnual report
「During the current interim consolidated accounting period, capital investment and construction investment, including by private-sector companies, remained at high levels, despite challenges such as the serious labor shortage across the construction industry and the start of regulations capping overtime work.」
While the labor shortage in the construction industry and the start of regulations capping overtime work are identified as challenges, the disclosure states that capital investment and construction investment remain at high levels. No significant change is indicated in the risk assessment regarding fluctuations in the construction market and the order environment. - FY2024-Q2SoftenedAnnual report
「During the first 2 quarters of the current fiscal year, the market environment surrounding our group remained generally firm, despite persistently high material and equipment prices, supported by the recovery in private-sector construction investment and companies' willingness to invest in capital equipment.」
While material and equipment prices remain persistently high, the market environment is assessed as generally firm due to the recovery in private-sector construction investment and companies' willingness to invest in capital equipment. The disclosure also states that there has been no significant change in business and other risks. - FY2024-Q1SoftenedAnnual report
「Although some concerns remain, including persistently high material and equipment prices due to surging energy prices caused by geopolitical factors and the prolonged weaker-yen trend, the market overall is performing steadily as government construction investment and companies' willingness to invest in capital equipment recover.」
While concerns such as persistently high energy and material and equipment prices continue, the market overall is assessed as firm due to the recovery in government construction investment and companies' willingness to invest in capital equipment. Compared with the previous description of a difficult market environment, positive factors are given greater prominence. - FY2023ReframedAnnual report
「The market environment surrounding our group is emerging from the stagnation caused by COVID-19, as private-sector construction investment is on a recovery trend and large-scale redevelopment and renovation projects are taking shape. However, concerns remain, including high energy prices stemming from the situation in Ukraine, persistently high material and equipment prices due to the sustained weaker-yen trend, and delays in resolving delivery problems for some equipment. In addition, addressing structural issues such as the serious labor shortage across the construction industry and the response to the upper limits on overtime work has become an urgent challenge.」
While the assessment of the environment has shifted from weak demand caused by the pandemic to a recovery in private-sector construction investment and the crystallization of projects, price increases, delivery delays, labor shortages and overtime-work regulations have emerged as new concerns. - FY2023-Q3WorsenedAnnual report
「During the first 3 quarters of the current fiscal year, the market environment surrounding our group remained uncertain. There were positive signs, including a solid recovery in private-sector construction investment and the crystallization of large-scale redevelopment and renovation projects, but energy prices rose due to geopolitical risks, material and component prices increased as the yen weakened, and delivery problems caused by disruptions in parts of the supply chain continued for longer.」
While the recovery in private-sector construction investment and the crystallization of projects represent positive developments, the disclosure states that surging energy and material prices and prolonged delivery problems caused by supply chain disruptions continue to create uncertainty in the construction market and order environment. - FY2023-Q1WorsenedAnnual report
「During the first quarter of the current fiscal year, the market environment surrounding our group remained generally difficult. Although there were some positive signs, such as the crystallization of large-scale redevelopment and renovation projects, a full recovery from the pandemic had not yet been achieved. Uncertainty about the outlook due to geopolitical risks, high crude oil prices, higher material and component prices associated with the weaker yen, and continuing supply constraints caused by semiconductor shortages also persisted.」
While the crystallization of large-scale redevelopment and renovation projects represents a positive sign, geopolitical risks, high crude oil prices, the weaker yen, surging material and component prices, and supply constraints caused by semiconductor shortages continue, and the disclosure states that the market environment remains generally difficult. - FY2022-Q3WorsenedAnnual report
「During the first 3 quarters of the current fiscal year, Japan's economy showed a mixed picture, with recovery expected from the effects of various policies and improvements in overseas economies, while downside risks from constraints on the supply of materials and components and trends in raw material prices, as well as the impact of COVID-19 variants, also emerged.」
In addition to the existing uncertainties surrounding the pandemic, labor shortages and material prices, the disclosure states that supply constraints for materials and components, downside risks from raw material prices and the impact of variants have emerged. - FY2022-Q2RestatedAnnual report
「In this industry, the impact of the COVID-19 pandemic, including declining corporate production activity and restrained capital investment, continues, and labor shortages, a chronic problem, also persist. However, some private-sector companies benefiting from the pandemic have begun to increase capital investment, which, together with corporate BCP measures and the government's national resilience measures, is regarded as a sign of and grounds for expecting an economic recovery.」
While the impact of the pandemic on production activity and capital investment and labor shortages continue, the disclosure also refers to signs of recovery from increased capital investment by some companies, BCP measures and national resilience measures. - FY2022-Q1RestatedAnnual report
「In this industry, the impact of the COVID-19 pandemic, including declining corporate production activity and restrained capital investment, is unavoidable, and labor shortages, a chronic problem in the industry, continue to persist, resulting in a difficult environment. However, some companies are increasing their production capacity and taking business continuity planning (BCP) measures, which, together with the government's national resilience measures and other initiatives, are regarded as signs of and grounds for expecting an economic recovery.」
While describing a difficult environment in which the impact of the COVID-19 pandemic on production activity and capital investment and labor shortages continue, the disclosure also refers to signs of recovery from increased production capacity, BCP measures and national resilience measures. - FY2021WorsenedAnnual report
「In this industry, various adverse effects have emerged or are a concern, including the postponement or restraint of capital investment plans due to deteriorating corporate performance, higher costs resulting from extended construction periods, rising labor costs caused by labor shortages, and surging material prices due to higher copper prices.」
The effects of postponed or restrained capital investment, extended construction periods, labor shortages and surging material prices associated with the COVID-19 pandemic have emerged or are a concern, and the risks in the construction market and order environment have increased. - FY2021-Q3RestatedAnnual report
「In this industry, the impact of the COVID-19 pandemic, including declines in corporate production activity and restraint in capital investment, is unavoidable, and a negative impact on operating conditions cannot be avoided. Labor shortages, a chronic problem in the industry, also persist, resulting in a difficult environment.」
The disclosure continues to describe a difficult operating environment caused by declining production activity and restraint in capital investment due to the COVID-19 pandemic, together with persistent labor shortages. - FY2021-Q2WorsenedAnnual report
「In this industry, the impact of the COVID-19 pandemic, including declines in corporate production activity and restraint in capital investment, is unavoidable, and a negative impact on short-term operating conditions cannot be avoided. Labor shortages, a chronic problem in the industry, also persist, resulting in a difficult environment.」
In addition to the previous labor shortage, the disclosure explicitly identifies the decline in corporate production activity, restraint in capital investment and short-term negative impact caused by the COVID-19 pandemic, stating that risks in the construction market and order environment have increased. - FY2021-Q1WorsenedAnnual report
「In this industry, in addition to persistently rising labor costs caused by labor shortages and high construction materials and equipment prices, the impact of the COVID-19 pandemic has also emerged. We recognize that the impact of factors such as revisions to customers' investment plans in response to rapid changes in the operating environment will be difficult to avoid.」
In addition to the persistently high labor and materials and equipment prices, the disclosure recognizes the impact of revisions to customers' investment plans due to the COVID-19 pandemic and states that the risk of fluctuations in the construction market has increased. - FY2020RestatedAnnual report
「Our group may be affected by changes in the size of the construction market resulting from fluctuations in private-sector and public investment, as well as declining gross profit margins caused by intensified competition for orders.」
Declining gross profit margins due to fluctuations in private-sector and public investment and intensified competition for orders continue to be cited as factors causing fluctuations in performance. - FY2020-Q3RestatedAnnual report
「In this industry, construction investment is expected to remain firm against the backdrop of redevelopment and other construction demand, particularly in the Tokyo metropolitan area. However, the uncertain operating environment continues due to persistently rising labor costs caused by labor shortages and high construction material and equipment prices.」
While construction investment is expected to remain firm against the backdrop of redevelopment and other factors, the disclosure states that an uncertain environment will continue due to rising labor costs caused by labor shortages and persistently high construction material and equipment prices. No significant change is indicated in the existing risk assessment regarding the construction market and cost environment. - FY2020-Q2RestatedAnnual report
「In this industry, construction investment is expected to remain firm against the backdrop of construction demand related to the Tokyo Olympic and Paralympic Games and other factors. However, the uncertain operating environment continues due to persistently rising labor costs caused by labor shortages and high construction material and equipment prices.」
While construction demand is expected to remain firm, the disclosure continues to cite an uncertain business environment caused by labor shortages and persistently high construction material and equipment prices. No significant change is indicated in the risk assessment regarding fluctuations in the construction market and the cost environment. - FY2020-Q1RestatedAnnual report
「In this industry, construction investment is expected to remain firm against the backdrop of construction demand related to the Tokyo Olympic and Paralympic Games. However, the uncertain operating environment continues due to persistently rising labor costs caused by labor shortages and high construction material and equipment prices.」
While construction investment is expected to remain firm against the backdrop of demand related to the Tokyo Olympic and Paralympic Games, the disclosure states that an uncertain environment will continue due to rising labor costs caused by labor shortages and persistently high construction material and equipment prices. No significant change is indicated in the existing risk assessment regarding fluctuations in the construction market and the cost environment. - FY2019RestatedAnnual report
「The group's operating results may be affected by changes in the size of the construction market resulting from fluctuations in private-sector and public investment, and by declines in gross profit margins due to intensified competition for orders.」
Fluctuations in private-sector and public investment and declining gross profit margins due to intensified competition for orders continue to be cited as factors affecting performance. - FY2019-Q3RestatedAnnual report
「In the industry, private-sector construction investment is expected to remain firm as corporate capital spending increases against a backdrop of improved corporate earnings. However, the business environment remains uncertain due to rising labor costs caused by labor shortages and persistently high construction equipment and materials prices.」
While private-sector construction investment is expected to remain firm, the disclosure continues to cite an uncertain environment due to rising labor costs caused by labor shortages and persistently high construction material and equipment prices. - FY2019-Q2RestatedAnnual report
「In the industry, private-sector construction investment is expected to remain firm as corporate capital spending increases against a backdrop of improved corporate earnings. However, the business environment remains uncertain due to rising labor costs caused by labor shortages and persistently high construction equipment and materials prices.」
While private-sector construction investment is expected to remain firm, the disclosure continues to cite an uncertain environment due to rising labor costs caused by labor shortages and persistently high construction material and equipment prices. - FY2019-Q1RestatedAnnual report
「In the industry, public investment remained firm, and private-sector construction investment is also expected to continue its gradual recovery. However, the business environment remains uncertain due to rising labor costs caused by labor shortages and persistently high construction equipment and materials prices.」
While expecting a recovery in public and private-sector construction investment, the company has continued to describe the uncertain business environment caused by rising labor costs due to labor shortages and persistently high construction equipment and materials prices. - FY2018RestatedAnnual report
「The group's operating results may be affected by changes in the size of the construction market resulting from fluctuations in private-sector and public investment, and by declines in gross profit margins due to intensified competition for orders.」
The company has continued to identify fluctuations in private-sector and public investment and declining gross profit margins due to intensified competition for orders as factors that may affect operating results. - FY2018-Q3RestatedAnnual report
「In the industry, public investment remained firm, while private-sector construction investment also recovered as corporate capital spending picked up against a backdrop of improved corporate earnings. This trend is expected to remain firm, but the business environment remains uncertain due to persistently high labor costs and construction equipment and materials prices.」
While expecting a recovery in public and private-sector construction investment, the company explains that the business environment remains uncertain because labor costs and construction equipment and materials prices remain high. No material change is indicated in its existing recognition of risks related to construction market fluctuations and the cost environment. - FY2018-Q2RestatedAnnual report
「In the industry, public investment remained firm, while private-sector construction investment also recovered as corporate capital spending picked up against a backdrop of improved corporate earnings. This trend is expected to remain firm, but the business environment remains uncertain due to persistently high labor costs and construction equipment and materials prices.」
While expecting a recovery in public and private-sector construction investment, the company explains that the business environment remains uncertain because labor costs and construction equipment and materials prices remain high. No material change is indicated in its existing recognition of risks related to construction market fluctuations and the cost environment. - FY2018-Q1RestatedAnnual report
「In the industry, government construction investment related to reconstruction budgets and supplementary budgets for the previous fiscal year is expected to increase, and construction investment is expected to grow. However, the business environment remains uncertain due to persistently high labor costs and construction equipment and materials prices.」
While referring to the outlook for increased government construction investment, the company explains that the business environment remains uncertain because labor costs and construction equipment and materials prices remain high. No material change is indicated in its existing recognition of risks related to construction market fluctuations and the cost environment. - FY2017-Q3RestatedAnnual report
「In the industry, government construction investment exceeded the previous fiscal year's level, while private-sector construction investment continued to increase moderately as corporate earnings recovered. However, labor costs driven by labor shortages and construction equipment and materials prices driven by yen depreciation and high crude oil prices remained high.」
The company describes trends in government and private-sector construction investment and the cost environment. No material change is indicated in its existing recognition of the risk that fluctuations in the construction market may affect operating results. - FY2017-Q2RestatedAnnual report
「In the industry, private-sector construction investment continued to increase moderately as corporate earnings recovered, while government construction investment declined. However, the business environment remained uncertain due to persistently high labor costs and construction equipment and materials prices, as well as the appreciation of the yen.」
The company describes trends in government and private-sector construction investment and the uncertain business environment caused by high costs and yen appreciation. No substantive change is indicated in its existing recognition of the risk that fluctuations in the construction market may affect operating results. - FY2016First statedAnnual report
「The group's operating results may be affected by changes in the size of the construction market resulting from fluctuations in private-sector and public investment, and by declines in gross profit margins due to intensified competition for orders.」
The company identifies fluctuations in private-sector and public investment and intensified competition for orders as factors that may cause fluctuations in operating results.