Lower utilization and profit due to upfront investment in the engineering business
First written in FY2018-Q1. 11 of 23 entries say "Mitigated", first in FY2018. Latest entry: FY2025-H1.
0 other companies' latest entry also says "Reframed".
- FY2025-H1ReframedAnnual report
「UTテクノロジー株式会社 and UTコンストラクション株式会社, which comprised the Engineering business in the previous consolidated fiscal year, were sold in April 2024. In connection with the organizational reorganization, from the current interim consolidated accounting period the reportable segments have been changed from the former Manufacturing, Area, Solutions, Engineering and Overseas businesses to the Manufacturing, Area, Solutions, Japanese-Brazilian Human Resources and Vietnam businesses.」
The sale of 2 Engineering businesses and discontinuation of the segment led to a reorganization of the theme of lower utilization and declining earnings associated with upfront investment in the business under the former business structure. - FY2024-Q3Narrower decline in profit amid continued investment in hiringAnnual report
「Recruitment-related costs increased because the company pursued new-graduate hiring for April 2024 more actively than usual in response to strong demand trends in construction engineering and IT engineering. In addition, personnel expenses increased as the business structure was strengthened, including sales and recruitment functions.」
As costs associated with new-graduate hiring and strengthening the sales structure continued to increase, the Engineering business posted higher revenue but segment profit fell 5.0% year on year to ¥750 million. The decline in profit continued from the previous quarter, but the extent of the decline narrowed. - FY2024-Q2WorsenedAnnual report
「Recruitment-related costs increased because the company pursued new-graduate hiring for April 2024 more actively than usual in response to strong demand trends in construction engineering and IT engineering. In addition, personnel expenses increased as the business structure was strengthened, including sales and recruitment functions.」
Higher recruitment-related costs and personnel expenses associated with new-graduate hiring and strengthening the business structure continued, and segment profit in the Engineering business fell 17.0% year on year to ¥404 million. - FY2024-Q1WorsenedAnnual report
「The 184 new graduates who joined the company in April this year began working at an early stage. In light of strong demand in the Construction Engineers and IT Engineers fields, hiring-related expenses increased as the company pursued new graduate recruitment for April 2024 more aggressively than in typical years.」
While the early deployment of 184 new graduates progressed, segment profit in the Engineering business declined 36.2% year on year due to higher recruitment-related costs for new graduates joining in April 2024. - FY2023MitigatedAnnual report
「In addition, order trends remained firm in both construction and IT, and revenue and profit increased as the number of technical employees rose year on year.」
The Engineering business further eased the profitability issues associated with investment in training and assigning new graduates, increasing revenue by 13.9% and segment profit by 43.6%. - FY2023-Q3MitigatedAnnual report
「During the cumulative third quarter of the consolidated fiscal year, approximately 200 new graduates who joined the company in April 2022 began working at an early stage. In the Engineering business, the company’s longstanding focus on establishing systems for training and assigning new graduates proved effective, enabling new graduates to become productive earlier than in the previous fiscal year. Orders remained solid in both construction and IT, and the increase in technical employees year on year resulted in higher revenue and profit.」
Supported by the early deployment of new graduates and firm orders in construction and IT, the Engineering business increased revenue and profit, easing the profitability issues associated with upfront training investment. - FY2023-Q2MitigatedAnnual report
「As a result, revenue was ¥4,503 million (¥3,884 million in the same period of the previous year, up 15.9%), segment profit was ¥487 million (¥331 million in the same period of the previous year, up 47.3%), and the number of technical employees was 1,561 (1,335 in the same period of the previous year, an increase of 226).」
Revenue, the number of technical employees and segment profit all increased in the Engineering business, further easing the profitability issues associated with upfront training investment. - FY2023-Q1MitigatedAnnual report
「In the Engineering business, the company's longstanding focus on establishing training and assignment systems for new graduates paid off, enabling new graduates to become productive earlier than in the previous fiscal year. In addition, order trends remained firm in both construction and IT, and revenue and profit increased as the number of technical employees rose year on year.」
Supported by the early deployment of new graduates and firm orders in construction and IT, the Engineering business increased revenue by 16.4% and segment profit by 59.9%, easing the profitability issues associated with upfront training investment. - FY2022MitigatedAnnual report
「As a result, revenue was ¥16,792 million (¥16,218 million in the same period of the previous year, up 3.5%), segment profit was ¥2,485 million (¥2,431 million in the same period of the previous year, up 2.2%), and the number of technical employees was 2,690 (2,587 in the same period of the previous year, an increase of 103).」
The Engineering business increased both revenue and profit while continuing the resumption of One UT, expansion of training centers and stepped-up hiring, demonstrating further improvement in profit following the previous fiscal year. - FY2022-Q3Continued slight decline in profit amid the resumption of One UT and expansion of training centersAnnual report
「As a result, revenue was ¥12,584 million (¥12,196 million in the same period of the previous year, up 3.2%), segment profit was ¥1,835 million (¥1,862 million in the same period of the previous year, down 1.4%), and the number of technical employees was 2,698 (2,542 in the same period of the previous year, an increase of 156).」
Revenue and the number of technical employees increased in the Engineering business, while segment profit declined 1.4% year on year due to higher recruitment-related costs. - FY2022-Q1Slight decline in profit amid the resumption of One UT and expansion of training centersAnnual report
「Demand for field engineers, mainly from major semiconductor manufacturing equipment manufacturers and semiconductor manufacturers, expanded in the Engineering business. In the previous fiscal year, the company resumed its internal program, “One UT,” which supports career changes from manufacturing operators to engineers, a transition that had been difficult to implement amid the spread of COVID-19, and hired new graduates in April 2021. As a result, the number of technical employees has continued to increase on a net basis from its low at the end of December 2020, compared with the previous quarter.」
While the resumption of One UT and expanding demand supported continued net additions to the workforce, the number of technical employees declined by 50 year on year and segment profit fell 3.6% year on year to ¥553 million. - FY2021-Q1MitigatedAnnual report
「On the other hand, utilization improved through greater operating efficiency following the reorganization of operating companies and a review of the training and assignment process for new graduates, resulting in a substantial increase in profit. As a result, revenue was ¥4,099 million (¥4,276 million in the same period of the previous year, down 4.1%) and segment profit was ¥574 million (¥87 million in the same period of the previous year).」
Revenue declined due to reduced new-graduate hiring, but segment profit improved from ¥87 million in the same period of the previous year to ¥574 million as utilization improved. - FY2020-Q3WorsenedAnnual report
「On the other hand, profit declined due in part to the impact of providing initial training in the first quarter to more than 900 new graduates, approximately twice last year's number. As a result, revenue was ¥12,768 million (¥10,455 million in the same period of the previous year, up 22.1%), segment profit was ¥582 million (¥761 million in the same period of the previous year, down 23.5%), and the number of technical employees was 2,804 (2,257 in the same period of the previous year, an increase of 547).」
Due in part to the impact of initial training for new graduates, segment profit in the Engineering business declined 23.5% year on year. Revenue and the number of technical employees increased. - FY2020-Q2WorsenedAnnual report
「On the other hand, profit declined due in part to the impact of providing initial training in the first quarter to more than 900 new graduates, approximately twice last year's number. As a result, revenue was ¥8,646 million (¥6,723 million in the same period of the previous year, up 28.6%), segment profit was ¥351 million (¥428 million in the same period of the previous year, down 18.1%), and the number of technical employees was 2,826 (2,135 in the same period of the previous year, an increase of 691).」
Due in part to the impact of initial training for new graduates, segment profit in the Engineering business declined 18.1% year on year. Revenue and the number of technical employees increased. - FY2020-Q1WorsenedAnnual report
「Because new graduates are non-operational for a certain period during initial training, the profit margin declined substantially year on year in the first quarter of the current consolidated fiscal year. This was a temporary factor associated with new-graduate hiring and had no impact on profitability for the full fiscal year. As a result, revenue was ¥4,276 million (¥3,328 million in the same period of the previous year, up 28.5%) and segment profit was ¥87 million (¥271 million in the same period of the previous year, down 67.8%).」
In the Engineering business, non-operational time due to initial training for new graduates actually occurred, and segment profit declined from ¥271 million in the same period of the previous year to ¥87 million. The company explained that this was a temporary factor with no impact on full-year profitability. - FY2019MitigatedAnnual report
「In addition, segment profit improved substantially through measures to improve profitability, including the integration of operating companies and more rigorous sales management. As a result, revenue was ¥14,051 million (¥10,655 million in the same period of the previous year, up 31.9%), operating profit was ¥1,074 million (¥238 million in the same period of the previous year, up 350.3%), and the number of technical employees was 2,291 (1,780 in the same period of the previous year, an increase of 511).」
The Engineering business improved from the profitability issues of previous years associated with upfront hiring and training investment to operating profit of ¥1,074 million, up 350.3% year on year. - FY2019-Q3MitigatedAnnual report
「In addition, segment profit improved substantially through measures to improve profitability, including the integration of operating companies and more rigorous sales management. As a result, revenue was ¥10,455 million (¥7,755 million in the same period of the previous year, up 34.8%), segment profit was ¥761 million (¥33 million in the same period of the previous year), and the number of technical employees was 2,257 (1,747 in the same period of the previous year, an increase of 510).」
The Engineering business improved from segment profit of ¥33 million in the same period of the previous year to ¥761 million, further easing the profitability issues associated with upfront investment and the establishment of the training system. - FY2019-Q2MitigatedAnnual report
「In addition, segment profit improved substantially through measures to improve profitability, including efficiency gains from integrating operating companies and more rigorous sales management. As a result, revenue was ¥6,723 million (¥4,959 million in the same period of the previous year, up 35.6%), segment profit was ¥428 million (a segment loss of ¥48 million in the same period of the previous year), and the number of technical employees was 2,135 (1,691 in the same period of the previous year, an increase of 444).」
The Engineering business improved from a segment loss of ¥48 million in the same period of the previous year to profit of ¥428 million, further easing the profitability issues associated with upfront investment. - FY2019-Q1MitigatedAnnual report
「In addition, segment profit improved substantially through measures to improve profitability, including efficiency gains from integrating operating companies and more rigorous sales management. As a result, revenue was ¥3,328 million (¥2,378 million in the same period of the previous year, up 39.9%), segment profit was ¥271 million (a segment loss of ¥94 million in the same period of the previous year), and the number of technical employees was 2,101 (1,661 in the same period of the previous year, an increase of 440).」
The Engineering business improved from a segment loss of ¥94 million in the same period of the previous year to profit of ¥271 million through the integration of operating companies and more rigorous sales management, addressing the decline in earnings and losses associated with upfront investment. - FY2018MitigatedAnnual report
「As a result, revenue was ¥106.55 million (¥7,688 million in the same period of the previous year, up 38.6%), operating profit was ¥238 million (¥98 million in the same period of the previous year, up 142.1%), and the number of technical employees was 1,780 (1,365 in the same period of the previous year, an increase of 415).」
The Engineering business improved from a temporary loss in the same period of the previous year to full-year operating profit of ¥238 million while continuing to expand through engineer training and hiring, resulting in a 142.1% year-on-year increase in profit. - FY2018-Q3AdvancedAnnual report
「However, segment profit declined because of higher costs for establishing an engineer training system to strengthen the business base and increased amortization of goodwill. As a result, revenue was ¥7,755 million (¥5,559 million in the same period of the previous year, up 39.5%), segment profit was ¥33 million (¥124 million in the same period of the previous year, down 72.8%), and the number of technical employees was 1,747 (1,287 in the same period of the previous year, an increase of 460).」
Revenue in the Engineering business increased 39.5% and the number of technical employees increased by 460, while segment profit fell to ¥33 million, down 72.8% year on year, due to higher costs for establishing the training system and increased amortization of goodwill. The business returned to profit from a loss in the previous cumulative quarter. - FY2018-Q2AdvancedAnnual report
「However, in addition to a temporary decline in utilization due to the increase in new-graduate hires, segment profit declined because of higher costs for establishing an engineer training system to strengthen the business base and increased amortization of goodwill. As a result, revenue was ¥4,959 million (¥3,576 million in the same period of the previous year, up 38.7%), the segment posted a loss of ¥48 million (segment profit of ¥82 million in the same period of the previous year), and the number of technical employees was 1,691 (1,235 in the same period of the previous year, an increase of 456).」
Revenue in the Engineering business increased 38.7% and the number of technical employees increased by 456, while the segment posted a loss of ¥48 million. The loss narrowed from ¥94 million in the previous quarter, but the business remains loss-making. - FY2018-Q1First statedAnnual report
「However, in addition to a temporary decline in utilization due to the increase in new-graduate hires, segment profit declined substantially because of higher costs for establishing an engineer training system to strengthen the business base and increased amortization of goodwill. As a result, revenue was ¥2,378 million (¥1,685 million in the same period of the previous year, up 41.1%), the segment posted a loss of ¥94 million (segment profit of ¥32 million in the same period of the previous year), and the number of technical employees was 1,661 (1,172 in the same period of the previous year, an increase of 489).」
Revenue in the Engineering business increased 41.1% and the number of technical employees increased by 489, but the segment moved from profit of ¥32 million in the same period of the previous year to a loss of ¥94 million due to a temporary decline in utilization from increased new-graduate hiring, higher costs to establish a training system and increased amortization of goodwill.