Earnings volatility in the mat business due to model changes, bidding competition and vehicle grades
First written in FY2018. 9 of 13 entries say "Materialised", first in FY2019-Q1. Latest entry: FY2024.
The Seima Holdings moved to the "Worse" side of this theme in 2018.
1 other company's latest entry also says "Restated".
- FY2024RestatedAnnual report
「The Mat business mainly manufactures and sells automotive floor mats, securing orders through competitive bidding for each model change by each automaker. Competition for orders has intensified year by year, and new technologies and lower costs are required.」
The company reconfirmed its view that model-change bidding, competition for orders, and requirements for new technologies and lower costs undermined business stability. - FY2023RestatedAnnual report
「The Mat business mainly manufactures and sells automotive floor mats, securing orders through competitive bidding for each model change by each automaker. Competition for orders has intensified year by year, and new technologies and lower costs are required.」
The company reconfirmed its view that model-change bidding, competition for orders, and requirements for new technologies and lower costs undermined business stability. - FY2022-Q2MaterialisedAnnual report
「Domestic sales of automotive floor mats increased slightly in terms of shipment volume. Overseas shipment volume also increased, but sales rose only slightly and margins narrowed because the proportion of premium products was low and the product mix was centred on lower-priced products.」
Because the product mix had a high proportion of lower-priced products and a low proportion of premium types, sales increased only slightly and margins narrowed. - FY2021WorsenedAnnual report
「The Mat business mainly manufactures and sells automotive floor mats, securing orders through competitive bidding for each model change by each automaker. Competition for orders has intensified year by year, and new technologies and lower costs are required.」
The company explicitly stated that competition for orders through competitive bidding had intensified and that new technologies and lower costs were required, while the Mat business recorded segment losses for 3 consecutive periods. - FY2020MaterialisedAnnual report
「In the Mats Business, selling prices deteriorated due to a decline in demand resulting from the recent global downturn in the automotive industry, as well as increased sales of mats for mass-market vehicles such as kei cars and compact cars.」
The risk that vehicle type and product mix would affect selling prices and profit margins materialised over the full fiscal year through increased sales to low-priced vehicle segments and deterioration in selling prices. - FY2020-Q3MaterialisedAnnual report
「The proportion of lower-priced products, including those for kei cars and compact cars, increased further in Japan and overseas, worsening the average selling price. Rising personnel costs, including an increase in the provision for retirement benefits due to amendments to labor laws in Thailand, the production base, also put pressure on profit. As a result, net sales were ¥1,391 million, a decrease of ¥69 million (4.8%) from the same quarter of the previous year, while the operating loss was ¥56 million, compared with an operating loss of ¥1 million in the same quarter of the previous year.」
The risk that vehicle type and product mix would affect selling prices and profit margins continued to materialise through a higher weighting of lower-priced types and an operating loss of ¥56 million. - FY2020-Q2MaterialisedAnnual report
「Sales volumes in Japan and overseas increased, driven mainly by lower-priced products for kei cars and compact cars, resulting in higher net sales. However, rising personnel costs, including an increase in the provision for retirement benefits due to amendments to labor laws in Thailand, the production base, put pressure on profit. As a result, net sales were ¥942 million, an increase of ¥18 million (2.0%) from the same quarter of the previous year, while the operating loss was ¥26 million, compared with an operating loss of ¥10 million in the same quarter of the previous year.」
The risk that the sales mix, selling prices and profit margins of the Mat business would affect performance continued to materialise as an operating loss, due to a sales mix centred on lower-priced models and the cost burden. - FY2020-Q1MaterialisedAnnual report
「Sales in Japan and overseas were centred on lower-priced types, including mass-market vehicles and minicars.」
The risk that vehicle type and product mix would affect selling prices and profit margins continued to materialise through sales centred on lower-priced types and an operating loss in the Mat business. - FY2019MaterialisedAnnual report
「Net sales remained weak and the profit margin deteriorated as lower-priced products, including a higher proportion of floor mats for compact and kei cars, increased in Japan and overseas. As a result, net sales were ¥1,875 million, a decrease of ¥34 million (1.8%) from the previous consolidated fiscal year, while the operating loss was ¥10 million, compared with operating profit of ¥47 million in the previous consolidated fiscal year.」
The risk that vehicle grades and product mix would affect selling prices and profit margins materialised through an increase in low-priced products and a full-year operating loss. - FY2019-Q3MaterialisedAnnual report
「Sales of low-priced vehicles such as mass-market and kei cars increased volumes, but lowered the average selling price and profit margin. As a result, net sales were ¥1,461 million, a decrease of ¥1 million (0.1%) from the same quarter of the previous year, while the operating loss was ¥1 million, compared with operating profit of ¥64 million in the same quarter of the previous year.」
The risk that the vehicle price range and product mix would affect selling prices and profit margins materialised through increased sales of low-priced vehicles and an operating loss. - FY2019-Q2MaterialisedAnnual report
「Sales of low-priced vehicles such as mass-market and kei cars increased, lowering the average selling price and causing the profit margin to deteriorate. As a result, net sales were ¥924 million, a decrease of ¥58 million (6.0%) from the same quarter of the previous year, while the operating loss was ¥10 million, compared with operating profit of ¥58 million in the same quarter of the previous year.」
The risk that the vehicle price range and product mix would affect selling prices and profit margins materialised through increased sales of low-priced vehicles and an operating loss. - FY2019-Q1MaterialisedAnnual report
「Sales in Japan and overseas consisted mainly of lower-priced products for mass-market and kei cars rather than premium products. As a result, net sales were ¥472 million, an increase of ¥9 million (2.1%) from the same quarter of the previous year, while the operating loss was ¥0 million, compared with operating profit of ¥25 million in the same quarter of the previous year.」
The risk that vehicle grades and product mix would affect the Mat business's profit, as the sales mix shifted toward lower-priced models and products, materialised as an actual operating loss. - FY2018First statedAnnual report
「The Mat business mainly sells automotive floor mats, securing orders through competitive bidding for each model change by each automaker. The success of these bids has a significant impact on sales and profit. In addition, the selling price and profit margin are affected by the grade of the vehicles for which orders are secured. Accordingly, although the Mat business currently drives the performance of the Group, it also has factors that undermine stability.」
The company stated that, apart from factors such as production adjustments by automakers, order wins through competitive bidding at each model change and vehicle grades affected sales and profit and were factors undermining business stability.