Strengthening the Profitability of the Manufacturing Operations
First written in FY2016. 14 of 32 entries say "Advanced", first in FY2017-Q1. Latest entry: FY2024.
No other company in this theme has enough history to compare yet.
- FY2024ReframedAnnual report
「On 1 April 2024, the Company transferred all shares of its consolidated subsidiary ビーネックスパートナーズ and withdrew from the manufacturing staffing business.」
The Company shifted from continuing to strengthen the manufacturing business's profit structure to a portfolio strategy centered on transferring and exiting the manufacturing staffing business and allocating management resources to the technology and construction businesses. - FY2024-Q3Revenue and profit decline due to automotive-related shutdowns and delayed organizational optimizationAnnual report
「During the nine-month period ended December 2023, demand for personnel in the manufacturing sector remained sluggish. As a result of continuing to broadly develop customers within our operating areas, the number of orders increased, but many were small-scale projects, causing the number of personnel ordered to decline and preventing growth in the number of personnel on assignment. In terms of profit, the gross profit margin declined slightly, partly due to temporary shutdowns related to the automotive industry. Although selling, general and administrative expenses were reduced by restraining recruitment costs, the optimization of the organizational structure lagged behind, and the previously high profit margins could not be maintained. As a result, revenue for this segment for the nine-month period ended December 2023 was ¥7,993 million, down 2.0% year on year, and segment profit was ¥182 million, down 56.8% year on year.」
In the manufacturing business, the number of orders increased through customer development, but many were small-scale projects, and the number of personnel ordered and personnel on assignment did not grow. Temporary shutdowns related to the automotive industry and delays in optimizing the organizational structure also contributed to a 2.0% decline in revenue and a 56.8% decline in segment profit. - FY2024-Q2Profit decline due to fewer employees at work, as small projects predominated, and the burden of strengthening the organizational structureAnnual report
「During the cumulative second quarter, demand for personnel in the manufacturing sector remained sluggish. The company continued to broadly develop customers in its operating area, increasing the number of orders, but many were small projects, so the number of personnel ordered declined and the number of employees at work failed to increase. On the earnings side, although recruitment costs were contained, the company strengthened its organizational structure for medium-term business expansion, while the gross profit margin also declined slightly, preventing it from maintaining its previously high profit margin. As a result, revenue for the segment was ¥5,415 million, up 0.4% year on year, while segment profit was ¥137 million, down 57.1%.」
Customer development increased the number of orders, but many were small projects and the number of employees at work did not increase. Strengthening the organizational structure for medium-term business expansion and the decline in the gross profit margin limited revenue growth to a slight increase, while segment profit fell 57.1% year on year. - FY2024-Q1Profit fell sharply as operating hours declined and organizational expansion was brought forwardAnnual report
「During the cumulative first quarter, revenue increased slightly due to growth in the number of employees and improved billing rates. On the earnings side, the gross profit margin declined as operating hours trended lower. In addition, although recruitment costs were contained, selling, general and administrative expenses increased because the company brought forward the expansion of its organizational structure to support medium-term growth. As a result, revenue for the segment was ¥2,667 million, up 2.3% year on year, while segment profit was ¥25 million, down 82.3%.」
Revenue rose 2.3% due to growth in the number of employees and improved billing rates, but lower operating hours reduced the gross profit margin and the early expansion of the organizational structure for medium-term growth increased selling, general and administrative expenses, resulting in an 82.3% decline in segment profit. - FY2023Profit margin declined due to higher recruitment and personnel costsAnnual report
「Cost ratios remained stable or improved, but recruitment costs and personnel expenses increased, causing the profit margin to decline slightly. As a result, revenue for the segment was ¥10,992 million, up 13.5% from the previous fiscal year, while segment profit was ¥556 million, down 0.8%.」
In the manufacturing-related area, the company continued to develop demand, negotiate unit prices and manage cost ratios, but higher recruitment and personnel costs resulted in a 0.8% decline in segment profit despite 13.5% revenue growth. - FY2023-Q3Recruitment and personnel costs increasedAnnual report
「Cost ratios remained stable or improved in both the temporary staffing and contract operations businesses, but recruitment and personnel costs increased slightly as a percentage of revenue. As a result, revenue for the segment in the cumulative third quarter was ¥8,159 million, up 15.2% year on year, while segment profit was ¥423 million, up 1.9%.」
While cost ratios remained stable or improved, recruitment and personnel costs increased as a percentage of revenue, limiting segment profit growth to 1.9% against 15.2% revenue growth. - FY2023-Q2AdvancedAnnual report
「As a result, revenue for the segment in the cumulative second quarter was ¥5,391 million, up 14.9% year on year, and segment profit was ¥319 million, up 13.6%.」
In the manufacturing-related area, the company developed demand, increased the number of employees at work, negotiated unit prices and improved cost ratios in the temporary staffing and contract operations businesses. Revenue rose 14.9% year on year and segment profit rose 13.6%. - FY2023-Q1AdvancedAnnual report
「During the cumulative first quarter, the company continued to broadly develop demand for personnel in its operating area, without concentrating on particular industries or major customers, as it had in the previous fiscal year. At the same time, it worked to maintain and improve profitability through measures such as unit-price negotiations. As a result, the number of employees at work increased, particularly in materials, electrical equipment and precision equipment, while cost ratios improved in both the temporary staffing and contract operations businesses. As a result, revenue for the segment was ¥2,607 million, up 14.1% year on year, and segment profit was ¥145 million, up 32.0%.」
In the manufacturing-related area, the company broadened demand development, negotiated unit prices and improved cost ratios in the temporary staffing and contract operations businesses, resulting in a 32.0% year-on-year increase in segment profit. - FY2022Profit decline despite continued order acquisition and cost-ratio managementAnnual report
「During the fiscal year, conditions varied by area and customer. Demand for personnel was weak in some industries due to supply constraints affecting parts and semiconductors, while production recovered in areas such as materials as consumption recovered following the easing of movement restrictions. The company nevertheless pursued orders through detailed sales activities and continued to focus on controlling cost ratios in the contract operations business to maintain margins. As a result, revenue for the segment was ¥9,682 million, up 11.8% year on year, while segment profit was ¥561 million, down 11.8%.」
The company continued detailed sales activities and cost-ratio control in the contract operations business, but varying demand conditions and supply constraints contributed to an 11.8% increase in revenue alongside an 11.8% decline in segment profit. - FY2022-Q3RestatedAnnual report
「During the nine months ended [the third quarter], demand for personnel varied across manufacturing subsectors, but the Group continued to secure orders through detailed sales activities. In the contract services business, it also continued to maintain profit margins by controlling cost ratios. As a result, segment revenue for the nine months ended [the third quarter] was ¥7,082 million, up 12.5% year on year, and segment profit was ¥402 million, up 10.2%.」
In the manufacturing-related area, the company continued to secure orders and maintain margins by controlling cost ratios in the contract operations business. Revenue and segment profit both exceeded the previous year's levels. - FY2022-Q2AdvancedAnnual report
「During the cumulative second quarter, the company accurately responded to recovering demand for personnel across the manufacturing sector, while the benefits of the cost-ratio improvements pursued in the contract operations business during the previous fiscal year continued. As a result, revenue for the segment was ¥4,692 million, up 14.6% year on year, and segment profit was ¥266 million, up 35.7%.」
The company captured recovering demand for personnel in the manufacturing sector, while the benefits of improved cost ratios in the contract operations business continued. Revenue in the manufacturing-related area rose 14.6% year on year and segment profit rose 35.7%. - FY2022-Q1AdvancedAnnual report
「During the three months ended [the first quarter], the Group responded accurately to recovering demand for personnel across the manufacturing industry, while the benefits of improved cost ratios in the contract services business implemented during the previous consolidated fiscal year continued. As a result, segment revenue for the three months ended [the first quarter] was ¥2,285 million, up 18.1% year on year, and segment profit was ¥110 million, up 261.6%.」
The continuing benefits of improved cost ratios in the contract operations business resulted in a 261.6% year-on-year increase in segment profit in the manufacturing-related area. - FY2021AdvancedAnnual report
「The company worked to optimize costs in the contract operations business, and the recovery in order volumes also supported an improvement in profitability. As a result, revenue for the segment was ¥8,662 million, down 4.0% from the previous fiscal year, while segment profit was ¥550 million, up 238.6%.」
While revenue declined in the manufacturing-related area, cost optimization in the contract operations business and a recovery in order volumes resulted in segment profit of ¥550 million, up 238.6% from the previous fiscal year. - FY2021-Q3AdvancedAnnual report
「In the contracting business, profitability improved as we optimized costs in line with order volumes and order volumes also began to recover. As a result, revenue for the cumulative third quarter of the current consolidated fiscal year was ¥6,294 million, down 10.3% year on year, while segment profit was ¥364 million, up 42.9%.」
In the manufacturing-related area, revenue declined 10.3%, but profitability improved through cost optimization in the contract operations business and a recovery in order volumes, resulting in a 42.9% increase in segment profit. - FY2021-Q2AdvancedAnnual report
「During the cumulative second quarter, production recovery at customer companies remained weak even after the state of emergency was lifted, although some production increases were seen toward year-end and the number of employees at work showed signs of bottoming out. In the contract operations business, the company worked to improve profitability by optimizing costs in line with order volumes. As a result, revenue for the segment was ¥4,092 million, down 14.4% year on year, while segment profit was ¥196 million, up 7.5%.」
While revenue declined in the manufacturing-related area, the company optimized costs in the contract operations business in line with order volumes, resulting in a 7.5% year-on-year increase in segment profit. - FY2021-Q1Revenue and profit decline due to weak production recoveryAnnual report
「During the cumulative first quarter, production recovery at customer companies remained weak even after the state of emergency was lifted, and the gradual decline in the number of employees at work continued. As a result, revenue for the segment was ¥1,935 million, down 19.0% year on year, and segment profit was ¥30 million, down 53.3%.」
In the manufacturing-related area, weak production recovery led to a continued decline in the number of employees at work, resulting in a 19.0% year-on-year decline in revenue and a 53.3% decline in segment profit. - FY2020Revenue and profit declines widened due to production adjustments and the COVID-19 pandemicAnnual report
「During the fiscal year, the company conducted sales activities focused on key strategic regions to improve the efficiency of recruitment and employment management, and pursued measures to increase the number of matches with applicants. However, production adjustments in Japan's manufacturing sector and the spread of COVID-19 resulted in some terminations at the end of temporary staffing contract periods. As of the end of June 2020, the segment had 2,093 employees, down 208 from the end of the previous fiscal year, and revenue was ¥9,021 million, down 9.4%. Although hourly billing rates for temporary staffing contracts rose in the fourth quarter in line with equal pay for equal work, margins at contract operation sites declined against the backdrop of adjustments in domestic manufacturing. In addition, the uniform payment of a ¥30,000 special allowance to all employees in Japan as a support measure during the COVID-19 pandemic resulted in temporary costs, leaving segment profit at ¥162 million, down 70.3%.」
The company continued sales and matching initiatives in key regions, but the number of employees, revenue and profit declined due to production adjustments in the manufacturing sector and the COVID-19 pandemic. Revenue fell 9.4% from the previous fiscal year and segment profit fell 70.3%. - FY2020-Q3Revenue and profit decline due to production adjustments and lower unit pricesAnnual report
「During the cumulative third quarter, the company conducted sales activities focused on key strategic regions to improve the efficiency of recruitment and employment management, and pursued measures to increase the number of matches with applicants. However, it was unable to secure operating levels sufficient to offset production adjustments in Japan's manufacturing sector. As of the end of March 2020, the segment had 2,301 employees, down 72 from the end of the previous fiscal year, and revenue was ¥7,016 million, down 5.9% year on year. Segment profit was ¥255 million, down 29.4%, due to lower hourly billing rates for temporary staffing and lower margins at contract operation sites.」
The company pursued sales and matching initiatives in key strategic regions but could not secure operating levels sufficient to offset production adjustments. Temporary staffing rates and margins at contract operation sites also declined. Revenue fell 5.9% and segment profit fell 29.4%. - FY2020-Q2Revenue and profit decline; initiatives fell short of expectationsAnnual report
「During the cumulative second quarter, the company pursued measures in key strategic regions to increase the number of job orders acquired and the number of matches with applicants, but these measures did not make a significant contribution to performance during the period. As a result, revenue for the segment was ¥4,779 million, down 6.4% year on year, and segment profit was ¥182 million, down 29.9%.」
Measures to increase job orders and matching volumes were pursued in key strategic regions, but did not make a significant contribution to performance, resulting in a 6.4% year-on-year decline in revenue and a 29.9% decline in profit in the manufacturing-related area. - FY2020-Q1Revenue decline but profit growth despite production adjustmentsAnnual report
「During the cumulative first quarter, the company focused on key strategic regions to increase its employee base, but could not fully offset the termination of contracts due to production adjustments by customer companies, resulting only in higher profit. As a result, revenue for the segment was ¥2,388 million, down 2.2% year on year, while segment profit was ¥65 million, up 49.2%.」
Although the company sought to increase its employee base in key strategic regions, it could not offset contract terminations due to production adjustments. Revenue therefore declined 2.2% year on year, while segment profit was ¥65 million, up 49.2%. - FY2019Limited growth due to hiring shortfallAnnual report
「The company pursued revenue growth by focusing on locally based sales activities and winning high-value orders, but hiring fell below expectations and did not result in substantial business growth. As a result, revenue for the segment was ¥9,989 million, up 0.9% from the previous fiscal year, and segment profit was ¥548 million, up 4.3%.」
While pursuing growth through high-value orders, hiring fell below expectations, limiting revenue growth in the manufacturing-related area to 0.9% and segment profit growth to 4.3%. - FY2019-Q3Slight profit growth despite a temporary production cutbackAnnual report
「During the cumulative third quarter, temporary production cutbacks occurred at some sites in the contract operations business. Nevertheless, the company pursued revenue growth by continuing to focus on locally based sales activities and winning high-value orders. As a result, revenue for the segment was ¥7,488 million, up 2.1% year on year, and segment profit was ¥361 million, up 2.7%.」
Despite temporary production cutbacks, the company continued locally based sales activities and the acquisition of high-value orders, resulting in revenue of ¥7,488 million and segment profit of ¥361 million in the manufacturing-related area. - FY2019-Q2Recruitment investment returned to normal levelsAnnual report
「During the cumulative second quarter, the company pursued revenue growth by continuing to focus on locally based sales activities and winning high-value orders. In addition to acquiring such orders, the company returned investment to normal levels because the impact of aggressive recruitment investment in the first quarter had been limited. As a result, revenue for the segment was ¥5,105 million, up 3.8% year on year, and segment profit was ¥260 million, up 4.7%.」
Recruitment investment increased in the first quarter was returned to normal levels because its impact had been limited. Together with the acquisition of high-value orders, this resulted in a 4.7% year-on-year increase in segment profit in the manufacturing-related area. - FY2019-Q1Profit decline due to increased recruitment investmentAnnual report
「During the cumulative first quarter, the company increased investment in recruitment advertising to pursue more active hiring, resulting in a decline in segment profit. As a result, revenue for the segment was ¥2,442 million, up 1.7% year on year, and segment profit was ¥43 million, down 53.1%.」
While continuing locally based sales activities and the acquisition of high-value orders, the company saw segment profit in the manufacturing-related area decline 53.1% year on year due to increased investment in recruitment advertising. - FY2018-Q3AdvancedAnnual report
「Demand for personnel from transportation equipment and machinery companies remained strong from the previous fiscal year. In addition, the company pursued the maintenance and strengthening of its earnings structure through more efficient recruitment activities, centered on local hiring, and by winning higher-margin orders. As a result, revenue for the segment in the cumulative third quarter was ¥7,333 million, up 11.5% year on year, and segment profit was ¥351 million, up 20.6%.」
The company continued to improve recruitment activities centered on local hiring and secure higher-margin projects, resulting in revenue of ¥7,333 million and segment profit of ¥351 million in the manufacturing-related area. - FY2018-Q2AdvancedAnnual report
「Demand for personnel from transportation equipment and machinery companies remained strong from the previous fiscal year. In addition, the company pursued the maintenance and strengthening of its earnings structure through more efficient recruitment activities, centered on local hiring, and by winning higher-margin orders. As a result, revenue for the segment in the cumulative second quarter was ¥4,918 million, up 14.1% year on year, and segment profit was ¥249 million, up 45.0%.」
The company continued to improve recruitment activities centered on local hiring and secure higher-margin projects, resulting in a 14.1% year-on-year increase in revenue and a 45.0% increase in segment profit in the manufacturing-related area. - FY2018-Q1AdvancedAnnual report
「Demand for personnel from transportation equipment and machinery companies remained strong from the previous fiscal year. In addition, the company pursued the maintenance and strengthening of its earnings structure through more efficient recruitment activities, centered on local hiring, and by winning higher-margin orders. As a result, revenue for the segment in the cumulative first quarter was ¥2,402 million, up 16.4% year on year, and segment profit was ¥93 million, up 40.6%.」
The company improved recruitment activities, mainly through local hiring, and secured higher-margin projects, resulting in a 16.4% year-on-year increase in revenue and a 40.6% increase in segment profit in the manufacturing-related area. - FY2017AdvancedAnnual report
「During the fiscal year, orders from transportation equipment and electrical equipment companies increased by industry. In addition, progress was made in strengthening the earnings structure, an area of focus since the previous fiscal year, through measures including securing profitability by project and improving labor productivity through workforce efficiency. The segment profit margin therefore improved. As a result, revenue for the segment was ¥8,957 million, up 9.0% from the previous fiscal year, and segment profit was ¥423 million, up 48.8%.」
The company pursued higher orders, profitability by project, locally based sales activities and improved labor productivity through workforce efficiency, resulting in segment profit of ¥423 million in the manufacturing-related area, up 48.8% from the previous fiscal year. - FY2017-Q3AdvancedAnnual report
「During the cumulative third quarter, orders from transportation equipment and electrical equipment companies increased by industry. In addition, progress was made in strengthening the earnings structure, an area of focus since the previous fiscal year, through measures including securing profitability by project and improving workforce efficiency through locally based sales activities. The segment profit margin therefore improved. As a result, revenue for the segment was ¥6,575 million, up 6.7% year on year, and segment profit was ¥291 million, up 59.8%.」
The company continued to secure profitability by project, pursue locally based sales activities and improve workforce efficiency, resulting in segment profit of ¥291 million in the manufacturing-related area, up 59.8% year on year. - FY2017-Q2AdvancedAnnual report
「During the cumulative second quarter, orders from transportation equipment and electrical equipment companies increased by industry. In addition, progress was made in strengthening the earnings structure, an area of focus since the previous fiscal year, through measures including securing profitability by project and improving workforce efficiency through locally based sales activities. The segment profit margin therefore improved. As a result, revenue for the segment was ¥4,308 million, up 4.3% year on year, and segment profit was ¥171 million, up 61.4%.」
The company pursued profitability by project, locally based sales activities and improved workforce efficiency, resulting in a 61.4% year-on-year increase in segment profit in the manufacturing-related area. - FY2017-Q1AdvancedAnnual report
「Orders from transportation equipment and electrical equipment companies increased, and the company pursued revenue growth and the maintenance and strengthening of its earnings structure, including by focusing on locally based sales activities to win higher-margin orders. As a result, revenue for the segment in the cumulative first quarter was ¥2,064 million, up 1.6% year on year, and segment profit was ¥66 million, up 60.8%.」
The company pursued higher-margin orders through locally based sales activities, resulting in a 60.8% year-on-year increase in segment profit in the manufacturing-related area. - FY2016First statedAnnual report
「As a result of efforts to strengthen profitability by improving the efficiency of recruitment and matching, securing profitability on each assignment, and reducing fixed costs, revenue was ¥8,220 million, up 2.2% year on year, and segment profit was ¥284 million, up 58.1%.」
In the manufacturing business, the Group seeks to improve profitability through more efficient matching, securing profitability by assignment, and reducing fixed costs.