FY2021-Q2First statedAnnual report
「(Energy) In terms of orders, the segment won contracts for stainless steel manufacturing equipment for China, battery-related high-temperature heat-treatment equipment and vacuum carburizing equipment for machine parts, among others. However, capital investment remained restrained in the domestic steel and automotive industries, and order intake remained at ¥6,262 million, or 66.3% of the year-earlier level. On the revenue side, the segment delivered a modification project for a continuous annealing line for cold-rolled steel sheet, while work progressed on heat-treatment equipment for automotive parts and high-temperature heat-treatment equipment for ceramic parts. However, opening order backlog was low, and revenue declined substantially to ¥7,370 million, or 49.3% of the year-earlier level. Operating results were an operating loss of ¥494 million due to the decline in revenue, compared with operating income of ¥855 million in the same period of the previous year. (Information and Communications) In terms of orders, customer capital investment plans were revised amid the prolonged US-China trade conflict, and business discussions with overseas customers stagnated due to government travel restrictions. As a result, order intake declined substantially to ¥160 million, or 16.9% of the year-earlier level. On the revenue side, the segment delivered precision coating equipment related to flexible displays for China, among others, but revenue remained at ¥602 million, or 77.2% of the year-earlier level, partly because opening order backlog was low. Operating results were an operating loss of ¥290 million due to the decline in revenue, compared with an operating loss of ¥294 million in the same period of the previous year. (Environmental Protection) In terms of orders, the segment won contracts for regenerative exhaust-gas treatment equipment to address tighter environmental regulations in Japan and overseas, among others, resulting in an increase in order intake to ¥1,354 million, or 111.4% of the year-earlier level. On the revenue side, the segment delivered regenerative exhaust-gas treatment equipment and other products, resulting in revenue of ¥1,097 million, or 94.7% of the year-earlier level. Operating results were operating income of ¥85 million due to an improved cost ratio, or 334.3% of the year-earlier level. (Other) In terms of orders, overseas subsidiaries won contracts for motor-core annealing furnaces for China, among others, but order intake remained at ¥1,349 million, or 73.6% of the year-earlier level. On the revenue side, the subsidiaries delivered regenerative exhaust-gas treatment equipment for China, among others, but revenue remained at ¥1,340 million, or 72.4% of the year-earlier level. Operating results were operating income of ¥151 million due to an improved cost ratio, or 106.4% of the year-earlier level.」
The Energy and Information and Communications segments recorded lower order intake and revenue and operating losses, while the Environmental Protection segment recorded higher order intake and increased operating income. Other recorded lower order intake and revenue but higher operating income.