Seasonality of earnings associated with capital expenditure budget execution
First written in FY2017. 1 of 3 entries say "Materialised", first in FY2018-Q3. Latest entry: FY2020.
The whole theme swung hardest in 2024: 4 of 13 companies on the "Worse" side.
13 other companies' latest entry also says "Restated".
- FY2020RestatedAnnual report
「Sales tend to be concentrated in the fourth quarter, and profit is similarly structured to be concentrated in the fourth quarter.」
The company continues to disclose the concentration of performance in the fourth quarter due to the timing of capital expenditure budget execution. - FY2018-Q3MaterialisedAnnual report
「In the plant and equipment construction-related business, many projects were completed in December in the previous period, while project completions are concentrated in the fourth quarter in the current period. As a result, sales in the related segment were ¥2,331 million, a decrease of ¥490 million (17.4%) from the same quarter of the previous year. Segment operating profit was ¥57 million, down ¥277 million (83.0%) from the same quarter of the previous year.」
Due to the concentration of project completions in the fourth quarter, sales in the plant and equipment construction-related business declined 17.4% and operating profit declined 83.0% in the third quarter, bringing the seasonal fluctuation risk into the actual results. - FY2017First statedAnnual report
「The performance of the Group's industrial machinery and construction machinery-related, environmental facilities-related, and plant and equipment construction-related businesses tends to be weighted toward the fourth quarter in terms of sales, due to the timing of customers' capital expenditure budget execution. Profit is similarly concentrated in the fourth quarter.」
The company has explicitly identified for the first time the concentration of sales and profit in the fourth quarter, depending on the timing of capital expenditure budget execution, as a risk.