Cost burden associated with the ramp-up of U.S. operations
First written in FY2016. 15 of 31 entries say "Mitigated", first in FY2018-Q1. Latest entry: FY2026.
Wakou Shokuhin 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 2023: 8 of 17 companies on the "Worse" side.
3 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「In the U.S. segment, operating profit was ¥1,052 million, down 16.3% year on year, mainly due to higher labor costs associated with strengthening the sales and production systems.」
The actual increase in labor costs associated with strengthening the sales and production systems resulted in a 16.3% year-on-year decline in operating profit in the U.S. segment. - 2026-05-15MaterialisedResults
「In the U.S. segment, operating profit was ¥1,052 million, down 16.3% year on year, mainly due to higher labor costs associated with strengthening the sales and production systems.」
営業・生産体制強化に伴う人件費負担が通期の米国営業利益減少として実績化した。 - FY2026-H1MaterialisedAnnual report
「In the U.S. segment, operating profit was ¥356 million, down 31.1% year on year, due mainly to lower sales and higher personnel expenses associated with strengthening the sales and production systems.」
The actual increase in labor costs associated with strengthening the U.S. business's sales and production systems, together with the decline in net sales, contributed to a 31.1% year-on-year decline in operating profit. - FY2025-H1MitigatedAnnual report
「In the U.S. segment, operating profit was ¥518 million, up 29.8% year on year, due to strong sales growth, improved productivity and cost reductions.」
The U.S. business posted operating profit as sales increased, productivity improved and costs were reduced, containing the earnings impact of costs associated with the ramp-up of the plant. - FY2024-Q3MitigatedAnnual report
「In the U.S. segment, operating profit was ¥703 million, up 41.9% year on year, as the company continued to improve productivity and reduce costs while maintaining the high margins of commercial products.」
The U.S. business posted operating profit of ¥703 million through maintaining its profit margin, improving productivity and reducing costs, further containing the earnings impact of costs associated with the ramp-up of the plant. - FY2024-Q2MitigatedAnnual report
「In the U.S. segment, operating profit was ¥399 million, up 20.7% year on year, due to strong sales growth and improvements in productivity and cost reductions.」
The U.S. business posted profit as sales recovered and productivity improved and costs were reduced, mitigating the earnings impact of costs associated with the ramp-up of the plant. - FY2023MitigatedAnnual report
「In the U.S. segment, operating profit was ¥712 million, up 66.9% year on year, as a result of ongoing efforts to improve productivity and reduce costs.」
The U.S. business posted operating profit of ¥712 million as a result of continued productivity improvements and cost reductions, mitigating the earnings impact of costs associated with the ramp-up of the plant. - FY2023-Q2MitigatedAnnual report
「In the U.S. segment, operating profit was ¥330 million, compared with ¥136 million in the same period of the previous year, as a result of continued efforts to improve productivity and reduce costs.」
The U.S. business posted operating profit of ¥330 million as a result of improved productivity and lower costs, further mitigating the impact of costs associated with the ramp-up of the plant. - FY2023-Q1MitigatedAnnual report
「In the U.S. segment, operating profit was ¥187 million, up 206.7% year on year, due to strong sales and improvements in productivity and cost reductions.」
The U.S. business posted operating profit as productivity improved, costs were reduced and sales recovered, further mitigating the earnings impact of costs associated with the ramp-up of the plant. - FY2022MitigatedAnnual report
「In the U.S. segment, operating profit was ¥427 million, compared with an operating loss of ¥47 million in the previous fiscal year, as the company worked to improve productivity and reduce costs.」
The U.S. business recorded operating profit of ¥427 million, and improved productivity and cost reductions eased the impact of costs associated with the plant ramp-up on performance. - FY2022-Q3MitigatedAnnual report
「In the U.S. segment, operating profit was ¥274 million as a result of continued efforts to improve productivity and reduce costs.」
The U.S. business recorded operating profit of ¥274 million, while improved productivity and cost reductions eased the impact of costs associated with the plant ramp-up. - FY2022-Q2MitigatedAnnual report
「In the U.S. segment, operating profit was ¥136 million as a result of continued efforts to improve productivity and reduce costs.」
The U.S. business recorded operating profit as a result of improved productivity and cost reductions, easing the impact of costs associated with the plant ramp-up on performance. - FY2021WorsenedAnnual report
「Although sales and plant utilization gradually recovered in the second half, the impact of difficult conditions through the first half resulted in an operating loss of ¥47 million in the U.S. segment, compared with operating profit of ¥28 million in the same period of the previous year.」
Although sales and plant utilization recovered in the second half, the U.S. segment changed from operating profit in the previous year to an operating loss of ¥47 million. - FY2021-Q3WorsenedAnnual report
「In the U.S. segment, sales and plant utilization gradually recovered in the second half, but the impact of the difficult conditions through the first half resulted in an operating loss of ¥72 million, compared with an operating loss of ¥14 million in the same period of the previous year.」
Although sales and plant utilization showed signs of recovery from the second half, the operating loss widened from ¥14 million in the same period of the previous year to ¥72 million, indicating that the cost burden continued to affect performance. - FY2021-Q2WorsenedAnnual report
「In the Japan segment, the operating loss was ¥221 million, compared with operating profit of ¥111 million in the same period of the previous year, due to lower gross profit resulting from declines in sales and plant utilization. In the U.S. segment, the operating loss was ¥124 million, compared with an operating loss of ¥47 million in the same period of the previous year, also due to lower gross profit resulting from declines in sales and plant utilization.」
In both Japan and overseas, lower sales and plant utilization intensified the impact of fixed manufacturing costs, with Japan shifting from operating profit to a loss and the U.S. loss widening. - FY2021-Q1WorsenedAnnual report
「In the U.S. segment, the operating loss was ¥82 million, compared with an operating loss of ¥26 million in the same period of the previous year, due to lower sales and plant utilization.」
The operating loss of the U.S. business widened year on year, and the impact of costs associated with lower plant utilization intensified. - FY2020-Q2RestatedAnnual report
「At overseas subsidiaries, higher sales increased plant utilization, reducing the manufacturing cost ratio and substantially improving the loss amount.」
Although the overseas business remains loss-making, the company continues to explain that the impact of costs associated with launching the U.S. business has eased as plant utilization increased and the manufacturing cost ratio declined. - FY2020-Q1MitigatedAnnual report
「The loss amount improved as higher sales at the overseas subsidiary increased plant utilization and reduced the manufacturing cost ratio.」
Although losses associated with operating the overseas plant remain, the loss amount improved as sales and plant utilization increased and the manufacturing cost ratio declined. - FY2019MitigatedAnnual report
「Although the burden of depreciation, personnel and other expenses associated with the initial investment remains heavy, the loss amount has improved substantially as sales growth increased plant utilization and reduced the manufacturing cost ratio. Under the current 3-year medium-term plan, the company will seek to achieve profitability on a full-year basis.」
Although the burden of depreciation and personnel expenses associated with the initial investment remains heavy, the loss amount improved substantially as higher plant utilization reduced the manufacturing cost ratio. - FY2019-Q3RestatedAnnual report
「Although higher raw material prices, increased personnel expenses amid improving employment conditions and higher logistics costs led to lower profit in Japan, losses at the overseas subsidiary improved substantially as higher sales increased plant utilization and reduced the manufacturing cost ratio.」
The company continues to explain that although the overseas business remains loss-making, the loss amount improved substantially as sales expanded and higher plant utilization reduced the manufacturing cost ratio. - FY2019-Q2MitigatedAnnual report
「Overseas, the loss amount improved substantially as higher sales increased plant utilization and reduced the manufacturing cost ratio.」
Although the overseas business remains loss-making, the impact of costs associated with launching the plant has eased further as sales and plant utilization increased and the manufacturing cost ratio declined. - FY2019-Q1MitigatedAnnual report
「Overseas, the loss amount improved substantially as higher sales increased plant utilization and reduced the manufacturing cost ratio.」
Although overseas operations continue to incur losses associated with plant operations, the impact of the cost burden has eased as sales and plant utilization increased and the manufacturing cost ratio declined. - FY2018MaterialisedAnnual report
「The burden of the initial investment remains heavy, with substantial expenses including plant depreciation and personnel costs for production staff continuing to arise and significantly affect the consolidated results. Under the current 3-year medium-term plan, the company will seek to accelerate business growth with the goal of achieving profitability on a full-year basis.」
The company states that the initial investment burden, depreciation and personnel expenses of the U.S. business remain heavy and continue to have a significant impact on consolidated results. - FY2018-Q3RestatedAnnual report
「Overseas, profit margins improved substantially and profit increased as higher sales and plant utilization reduced the manufacturing cost ratio.」
Overseas operations reported higher profit as plant utilization increased and the manufacturing cost ratio declined, continuing to indicate that the impact of costs associated with launching the plant is being contained. - FY2018-Q2MitigatedAnnual report
「Overseas, profit margins improved substantially and profit increased as higher sales and plant utilization reduced the manufacturing cost ratio.」
Although costs associated with operating the U.S. plant and other facilities remained, overseas earnings improved as sales and plant utilization increased and the manufacturing cost ratio declined. - FY2018-Q1MitigatedAnnual report
「Overseas, profit margins improved and losses narrowed as the increase in sales and higher plant utilization reduced the manufacturing cost ratio.」
Although the cost burden associated with operating the U.S. plant continued to result in losses, the losses narrowed as sales and plant utilization increased and the manufacturing cost ratio declined. - FY2017MaterialisedAnnual report
「Overseas operations reported lower profit as the burden of depreciation, personnel and other expenses increased after one year of U.S. plant operations, which marked the first year of full-year operations.」
The burden of depreciation, personnel and other expenses associated with full-year operations at the U.S. plant became an actual factor behind the full-year decline in profit. - FY2017-Q3MaterialisedAnnual report
「Overseas operations reported lower profit due to depreciation following the start-up of the U.S. plant, higher personnel expenses and other factors.」
Higher depreciation and personnel expenses associated with the operation of the U.S. plant continued to weigh on profit. - FY2017-Q2MaterialisedAnnual report
「The operating loss was ¥31 million, compared with operating profit of ¥77 million in the same period of the previous year. The main factors were, as in the cumulative first-quarter period, higher fixed manufacturing costs in Japan resulting from investments in personnel and production equipment to strengthen capacity for further sales expansion, as well as higher overseas expenses, including depreciation following the start-up of the U.S. plant.」
The continuing burden of depreciation and other costs associated with the operation of the U.S. plant is cited as a factor behind the operating loss. - FY2017-Q1MaterialisedAnnual report
「The operating loss was ¥15 million, compared with operating profit of ¥27 million in the same quarter of the previous year. The main factors were an increase in the cost of sales ratio in Japan resulting from investments in production equipment and personnel to strengthen cost competitiveness and expand sales, and higher expenses overseas, including depreciation following the start-up of the U.S. plant completed at the end of the previous year.」
The company states that the expected burden of depreciation and other costs following the start-up of the U.S. plant actually materialized and was one factor behind the ¥15 million operating loss. - FY2016First statedAnnual report
「In the next fiscal year, the U.S. subsidiary plans to record substantial expenses, including depreciation and personnel costs for production staff, as the plant operates. Difficult conditions are expected until sales reach a larger scale.」
The company states that depreciation, personnel and other expenses may weigh on consolidated performance after the plant begins operations until sales expand.