Profitability pressures on the domestic architectural glass business due to declining housing starts and structural changes in demand
First written in FY2020. 3 of 7 entries say "Materialised", first in FY2021-Q1. Latest entry: FY2023-Q3.
Central Glass moved to the "Worse" side of this theme in 2020, the same year as the typical company in this theme.
The whole theme swung hardest in 2023: 15 of 21 companies on the "Worse" side.
3 other companies' latest entry also says "Restated".
- FY2023-Q3RestatedAnnual report
「In architectural glass, construction demand remained approximately at the same level as the same period of the previous year. However, sales fell below the same period of the previous year as the company reviewed unprofitable transactions and other activities, downsized sales and production sites to appropriate levels, and consolidated them as part of structural improvement initiatives implemented in the previous year.」
Although construction demand remained at the same level as in the same period of the previous year, the situation continues in which the review of unprofitable transactions and the downsizing and consolidation of sites as part of structural improvements are factors behind the revenue decline. - FY2023-Q1Revenue declines from structural improvements despite resilient demandAnnual report
「In architectural glass, construction demand remained relatively firm. However, sales fell below the same period of the previous year as the company reviewed unprofitable transactions and other activities, downsized sales and production sites to appropriate levels, and consolidated them as part of structural improvement initiatives implemented in the previous year.」
Although demand itself was relatively resilient, structural improvements, including the review of unprofitable transactions and the downsizing and consolidation of sites, have materialized in lower revenue. - FY2022-Q1MaterialisedAnnual report
「In architectural glass, sales fell below the same period of the previous year due to declining domestic construction demand and the impact of reviewing unprofitable transactions.」
Declining domestic construction demand and the review of unprofitable transactions have materialized in a year-on-year decline in architectural glass revenue. - FY2021WorsenedAnnual report
「The operating environment surrounding the business is difficult, with construction demand expected to decline as the population decreases in the future, in addition to market contraction resulting from the impact of the COVID-19 pandemic.」
The company explicitly identifies declining construction demand due to population decline and market contraction caused by the COVID-19 pandemic as sources of profit pressure on the domestic architectural glass business. - FY2021-Q2MaterialisedAnnual report
「In architectural glass, sales fell significantly below the same period of the previous year due to declining construction demand, lower sales for certain industrial applications, and the withdrawal from the US architectural processed glass business.」
Declining construction demand, lower sales to certain industrial applications and the withdrawal from the U.S. business have materialized in a substantial year-on-year decline in architectural glass revenue. - FY2021-Q1MaterialisedAnnual report
「In architectural glass, sales fell significantly below the same period of the previous year due to declining construction demand, construction delays, lower sales for certain industrial applications, and the withdrawal from the US architectural processed glass business.」
The difficult operating environment, including declining domestic demand for architectural glass and construction delays, has materialized in a substantial year-on-year decline in revenue. - FY2020First statedAnnual report
「The domestic architectural glass business has continued to undergo rationalization and changes in distribution channels in response to declining new housing starts and structural changes in demand accompanying the spread of insulated glass. However, the operating environment remains difficult. As demand is expected to decline further due to the declining birthrate and aging population, among other factors, the industry as a whole is being urged to undertake reforms.」
The company newly provides a separate explanation of declining housing starts, the spread of insulated glass and declining demand due to the declining birthrate and aging population as structural factors shaping the operating environment for the domestic architectural glass business.