3% Operating Margin Target for Stable Earnings
First written in FY2018. 2 of 19 entries say "Advanced", first in FY2025. Latest entry: 2026-08-10.
The whole theme swung hardest in 2019: 13 of 101 companies on the "Worse" side.
18 other companies' latest entry also says "Worsened".
- 2026-08-10WorsenedEarnings
「As a result, consolidated performance for the first quarter cumulative period exceeded the previous period's sales, including those of sales subsidiaries. However, sluggish growth in the middle of the period after Golden Week meant that the increase was insufficient to cover higher manufacturing costs caused by overall cost increases, resulting in a loss at the operating income level despite higher sales.」
Although sales increased, the company could not absorb higher costs and posted an operating loss of ¥40 million, with profitability and the operating margin deteriorating. - FY20263.0% operating marginAnnual report
「Operating margin on sales (%) Negative 1.8 Negative 1.0 2.7 3.3 3.0」
The policy of using the operating margin on sales as an indicator of strengthening the earnings base continues. The operating margin for the fiscal year ending March 2026 was 3.0%, down from 3.3% in the previous fiscal year but at the previously stated 3% level. - FY2026-H1Decline in first-half operating profitAnnual report
「In terms of profit and loss, the benefit of higher revenue was insufficient to absorb downward pressure from higher raw material and other expenses. Operating profit therefore fell to ¥156 million, down 46.2% year on year,」
Despite the stated goal of securing stable profits, operating profit for the cumulative interim period under review fell 46.2% year on year to ¥156 million, as the benefit of higher revenue could not offset rising raw material and other expenses. - FY2025AdvancedAnnual report
「Operating margin on sales (%) 0.8 Negative 1.8 Negative 1.0 2.7 3.3」
The policy of using the operating margin on sales as an indicator of strengthening the earnings base continues. The operating margin for the fiscal year ended March 2025 was 3.3%, improving from 2.7% in the previous fiscal year and exceeding the previously stated 3% level. - FY2025-H1Increase in interim operating profitAnnual report
「In terms of profit and loss, revenue continued to increase, and manufacturing costs improved due to lower raw material and labor costs. As a result, operating profit rose to ¥290 million, up 250.9% year on year,」
Operating profit for the interim consolidated period under review was ¥290 million, up 250.9% year on year. The disclosure identifies improved manufacturing costs due to lower raw material and labor costs as a factor. - FY2024-Q3Cumulative return to operating profitabilityAnnual report
「In terms of profit and loss, revenue continued to increase, while controls on raw material and labor costs and reductions in electricity and fuel costs improved manufacturing costs. As a result, operating profit was ¥620 million, compared with a loss of ¥229 million in the same period of the previous year, securing profitability.」
Cumulative operating performance for the third quarter under review swung from an operating loss of ¥229 million in the same period of the previous year to operating profit of ¥620 million, securing cumulative profitability. - FY2024-Q2First-half return to operating profitabilityAnnual report
「In terms of profit and loss, revenue remained higher, while the effects of price revisions and lower fuel and labor costs led to an improving trend in manufacturing costs. As a result, operating profit was ¥82 million, compared with a loss of ¥267 million in the same period of the previous year, securing profitability.」
Operating profit for the cumulative second quarter under review was ¥82 million, a shift to first-half operating profitability from an operating loss of ¥267 million in the same period of the previous year. The disclosure cites the effects of price revisions, lower fuel and labor costs, and improved manufacturing costs as factors. - FY2024-Q1Increase in quarterly operating profitAnnual report
「In terms of profit and loss, manufacturing costs generally remained high, but lower fuel and labor costs, together with the benefit of higher revenue, improved the gross profit margin. As a result, operating profit was ¥131 million, up 86.7% year on year, securing profitability.」
Operating profit in the first quarter under review was ¥131 million, an 86.7% year-on-year increase and a profit. Despite the stated goal of securing stable profits, this was up from operating profit of ¥70 million in the same period of the previous year. - FY2023Operating margin indicator maintained; loss reportedAnnual report
「Our group uses the operating margin on sales as an indicator of strengthening its earnings base and aims to secure and expand stable profits. The latest situation is as follows.」
The policy of using the operating margin on sales as an indicator continues, but the specific 3% target is not reiterated. The operating margin on sales for the fiscal year ended March 2023 was negative 1.0%. - FY2023-Q3Expansion of cumulative operating lossAnnual report
「As a result, performance for the cumulative third quarter under review showed an upward trend as the impact of substitute demand persisted after a pause in the summer and demand entered its peak season. However, manufacturing costs, including raw materials and fuel, remained high, and operating performance fell slightly short of the previous year despite higher revenue. Revenue was ¥15,087 million, up 12.9% year on year, reflecting the overall impact of substitute demand, including growth at the beginning of the period, a summer lull and increased autumn and winter demand, as well as the successful expansion of fabric production capacity. In terms of profit and loss, results improved slightly in the third quarter, the peak demand period, but absorbing higher manufacturing costs was difficult. In addition, logistics were disrupted by heavy snowfall, resulting in an operating loss of ¥229 million, compared with a loss of ¥203 million in the same period of the previous year,」
While revenue increased, the operating loss for the cumulative third quarter under review widened from ¥203 million in the previous year to ¥229 million. The disclosure states that results improved slightly in the third quarter alone. - FY2023-Q2Quarterly operating losses continue, but losses narrowAnnual report
「In terms of profit and loss, manufacturing costs remained high, and the company was unable to absorb higher costs because sales stalled after the summer. It therefore posted an operating loss of ¥267 million, compared with a loss of ¥367 million in the same period of the previous year,」
Although the operating loss narrowed from ¥367 million to ¥267 million year on year, the company remained in the red in the cumulative second quarter under review. - FY2023-Q1Quarterly return to operating profitabilityAnnual report
「In terms of profit and loss, promotional expenses remained high due to sales centered on standard products, preventing the company from generating sufficient margins. Nevertheless, despite surging costs for raw materials, supplies and energy, operating profit was ¥70 million, compared with an operating loss of ¥144 million in the same period of the previous year, securing profitability.」
Despite the stated goal of securing stable profits, the company swung from an operating loss in the same quarter of the previous year to operating profit of ¥70 million in the first quarter under review, securing quarterly profitability. - FY2022-Q3Quarterly operating loss recordedAnnual report
「In terms of profit and loss, higher costs for raw materials, supplies and energy began to weigh on results as the effects of lower revenue in the first half persisted. The company posted an operating loss of ¥203 million, compared with operating profit of ¥384 million in the same period of the previous year, without being able to absorb the increased fixed-cost burden, including depreciation expenses.」
Despite the stated goal of securing stable profits, operating performance deteriorated from operating profit of ¥384 million in the previous year to an operating loss of ¥203 million in the cumulative third quarter under review. - FY2021-Q2Failure to meet quarterly planAnnual report
「Operating profit was ¥76 million, compared with ¥5 million in the same period of the previous year, falling short of the ¥100 million plan for the cumulative period after taking into account the change in the depreciation method for business equipment to the straight-line method.」
The disclosure states that operating profit was ¥76 million against a ¥100 million plan for the cumulative period under review. - FY2020SoftenedAnnual report
「Our group uses the operating margin on sales as an indicator of establishing a profitable core business and aims to secure stable profits.」
The specific previous target of a 3% operating margin on sales is not reiterated in this description of management objectives and has been replaced by the wording "securing stable profits." The actual operating margin was 0.8% and ROE was 3.3%. - FY2019RestatedAnnual report
「Our group regards the operating margin as an indicator of establishing a profitable core business, and considers improving asset efficiency and making effective use of shareholders' equity to be in the interests of all stakeholders. Accordingly, we have positioned return on equity (ROE) as an important indicator. For the fiscal year under review, the operating margin was 0.04%, down 0.26% year on year, while ROE was 2.4%, up 0.4% year on year. We will continue working to improve these indicators.」
The disclosure continues the earnings improvement policy, including the 3% target for operating margin on sales, and reports an operating margin of 0.04% and ROE of 2.4%, together with a policy of improving both indicators. - FY2018First statedAnnual report
「Our group places importance on securing stable earnings and has set a target operating margin on sales of 3%.」
The disclosure explicitly sets a 3% operating margin on sales as an objective indicator for securing stable earnings. The operating margin for the fiscal year under review was 0.3% and ROE was 2.0%, and the group states that it will work to improve both indicators.