Shortages of Semiconductors and Components

「デバイス調達難が続くなか、在庫販売を進めた画像処理ボード等が高粗利のスポット需要として貢献した」

「Although production in the automotive industry, our major market, recovered as the shortage of automotive semiconductors eased, sales to customers whose business is primarily based on exports to China remained weak.」

「In the cutting tools business, although production volumes in the automotive industry, the Company's main customer industry, were on a recovery trend after production adjustments caused by the global semiconductor shortage had eased, the year was affected throughout by production adjustments resulting from supply chain constraints on semiconductors and other components.」

「In the automotive industry, our major market, factory operations have been recovering as supply constraints on parts such as automotive semiconductors have eased and exports have remained firm due to the weaker yen. We also worked to expand sales of our core products and original products.」

「In the cutting tools business, the company worked to expand sales of its core products and original products, but sales were sluggish amid severe market conditions, including production cuts and stoppages caused by the semiconductor shortage in the automotive industry, a major customer base. At the same time, the steady pass-through of higher procurement costs into product sales prices resulted in revenue of ¥8,214 million, down 0.2% year on year, and segment profit of ¥124 million, up 325.8% year on year, resulting in lower revenue but higher profit.」

「In the cutting tools business, we pursued proactive sales activities amid disruptions to manufacturers' production caused by the prolonged semiconductor shortage and disruptions in the supply of parts in the automotive industry, our major market. However, sales were ¥3,968 million, down 0.8% year on year, and segment profit was ¥42 million, down 11.7%, resulting in lower sales and profit.」

「In the cutting tools business, although concerns remain, including production adjustments accompanying the resurgence of COVID-19 infections and soaring raw material prices, production activity and capital investment are showing signs of recovery.」

「In the cutting tools business, some concerns remained, including delays in the delivery of certain products due to the global parts shortage. However, proactive initiatives such as developing new customers resulted in higher sales and profit, with sales of ¥12,446 million, up 31.9% year on year, and segment profit of ¥116 million, compared with a segment loss of ¥172 million in the same period of the previous year.」

「In the cutting tools business, although business conditions remain stagnant due to the prolonged semiconductor shortage and insufficient procurement of components from Asia,」