Stagnant Sales Volumes of Existing Products Due to Multiple Sourcing by Customers and the Shift of Production Overseas
First written in FY2018-Q2. 9 of 25 entries say "Worsened", first in FY2018. Latest entry: FY2025.
Nihon Kagaku Sangyo moved to the "Worse" side of this theme in 2019, 3 years before the typical company in this theme (2022).
The whole theme swung hardest in 2018: 6 of 10 companies on the "Worse" side.
4 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「Shipments in the main electronic industry sector were on a recovery trend, although lacking strength. Expanded sales volumes resulting from a recovery in domestic demand and rising nonferrous metal prices, among other factors, contributed to higher sales.」
Shipments in the electronic industry entered a recovery trend, and the recovery in domestic demand led to higher sales volumes, partly easing the impact of inventory adjustments and weak demand through the previous year. - FY2025-H1MitigatedAnnual report
「Shipments in the main electronic industry sector were on a recovery trend, although lacking strength. Expanded sales volumes resulting from a recovery in domestic demand and rising nonferrous metal prices, among other factors, contributed to higher sales.」
Shipments in the electronic industry entered a recovery trend, and the recovery in domestic demand led to higher sales volumes. The deterioration in the sales environment caused by inventory adjustments and weak demand in electronic component-related markets through the previous year was partly eased. - FY2024-Q3RestatedAnnual report
「Although inventories had declined at some companies in the electronic component industry, the impact of inventory adjustments across the supply chain lasted longer than expected, and product sales volumes declined.」
Prolonged inventory adjustments across the electronic component supply chain and declining product sales volumes continued. - FY2024-Q2WorsenedAnnual report
「We also promoted the early commercialization of new products and products developed for new applications and the acquisition of new users, and sought to secure sales and production volumes of existing products. However, product sales volumes declined because inventory adjustments across the entire electronics-component supply chain lasted longer than expected.」
Inventory adjustments across the electronic component supply chain lasted longer than expected, with the impact becoming evident in lower sales volumes, including for existing products. - FY2024-Q1WorsenedAnnual report
「Although contract manufacturing of cathode materials for secondary batteries at the Fukushima Daiichi Plant and Saitama Plant remained solid, inventory adjustments for electronic component- and automotive-related applications lasted longer than expected. As a result, sales volumes of existing products declined significantly at both domestic and overseas subsidiaries, and net sales fell by ¥1,380 million, or 23.6%, year on year to ¥4,478 million.」
Inventory adjustments for electronic component- and automotive-related applications lasted longer than expected, causing sales volumes of existing products to decline significantly at domestic and overseas subsidiaries. - FY2023WorsenedAnnual report
「In the core chemicals business, demand remained broadly in line with the previous fiscal year through the beginning of the current consolidated fiscal year. From the latter half of the second quarter, however, customer inventory adjustments became pronounced, particularly for electronic component- and automotive-related applications, and sales volumes of existing products declined significantly.」
Customer inventory adjustments became pronounced in electronic component- and automotive-related applications, and sales volumes of existing products declined significantly. - FY2023-Q3RestatedAnnual report
「In the core chemicals business, demand stagnated, particularly for electronic component- and catalyst-related applications, and sales volumes of existing products stagnated, although」
Demand stagnation, particularly for electronic component- and catalyst-related applications, and stagnant sales volumes of existing products continued. - FY2023-Q2RestatedAnnual report
「In the core chemicals business, sales volumes of existing products stagnated, particularly for electronic component-related applications. Overall, however, nonferrous metal prices remained high, and related selling prices rose from the year-earlier quarter, in addition to」
Although sales volumes of existing products, particularly for electronic component-related applications, continued to stagnate, higher selling prices resulting from sustained high nonferrous metal prices supported sales. - FY2023-Q1WorsenedAnnual report
「In the core chemicals business, sales volumes of existing products stagnated partly because of inventory adjustments by customers. However, nonferrous metal prices remained high, and related selling prices rose from the year-earlier quarter. In addition, contract manufacturing of cathode materials for secondary batteries began at the Saitama Plant, among other factors. As a result, net sales increased by ¥1,242 million, or 26.9%, year on year to ¥5,858 million.」
While demand recovered and selling prices rose, sales volumes of existing products stagnated because of inventory adjustments by customers. - FY2022-Q3MitigatedAnnual report
「As demand for existing products continued to recover and sales volumes increased, among other factors, net sales increased by ¥2,942 million, or 25.7%, year on year to ¥14,378 million.」
The recovery in demand for existing products and the increase in sales volumes continued, leading to further improvement in the sales environment for the chemicals business. - FY2022-Q2MitigatedAnnual report
「In addition to a broad-based recovery in demand and the continued upward trend in nonferrous metal prices in the chemicals business, consolidated net sales for the 6-month period ended in the second quarter increased by ¥2,443 million, or 28.0%, year on year to ¥11,163 million」
The recovery in domestic and overseas demand and higher nonferrous metal prices partly eased the challenging sales environment, including for existing products, and company-wide net sales increased year on year. - FY2021MitigatedAnnual report
「From the third quarter onward, demand gradually recovered as economic activity improved, while rising nonferrous metal prices in the chemicals business also contributed,」
The resumption of economic activity, recovery in automotive demand and rise in nonferrous metal prices led to signs of recovery in the sales environment. However, it remained below pre-pandemic levels. - FY2021-Q3MitigatedAnnual report
「Thereafter, from around the middle of the year, when the COVID-19 pandemic began to subside temporarily, economic activity resumed globally, including in Japan, and exports and domestic and overseas automotive demand recovered. Against this backdrop, the business showed signs of recovery, although the pace remained slow.」
The resumption of economic activity and recovery in domestic and overseas automotive demand led to signs of recovery in the sales environment, including for existing products. However, the recovery was not sufficient to offset the decline through the second quarter. - FY2021-Q2RestatedAnnual report
「Due in part to the continuing impact of COVID-19, demand failed to recover broadly in Japan and overseas, particularly in information technology-related and automotive markets,」
Demand remained below recovery levels in Japan and overseas, particularly in information technology-related and automotive markets. - FY2021-Q1RestatedAnnual report
「Due in part to the continuing impact of COVID-19, demand failed to recover broadly in Japan and overseas, particularly in information technology-related and automotive markets,」
Demand continued to decline in Japan and overseas, particularly in information technology-related and automotive markets, and the challenging sales environment persisted. - FY2020WorsenedAnnual report
「In addition to lower selling prices resulting from the delayed recovery in nonferrous metal market prices, broad-based demand declined, particularly in information technology-related and automotive markets, and sales of core products at the overseas Thai subsidiary Siam NKS also declined,」
The factors affecting full-year performance in the sales environment were identified as lower nonferrous metal prices, weaker demand in information technology-related and automotive markets, and lower sales of core products at the Thai subsidiary. - FY2020-Q3RestatedAnnual report
「In addition to lower selling prices resulting from the delayed recovery in nonferrous metal market prices, broad-based demand continued to decline, particularly in information technology-related markets, and sales of core products at the overseas Thai subsidiary Siam NKS also declined,」
Broad-based demand continued to decline, particularly in information technology-related markets, and sales of core products at the Thai subsidiary also continued to fall. - FY2020-Q2WorsenedAnnual report
「Although stable supply of contract-manufactured cathode materials for secondary batteries had been largely achieved following the establishment of a 600-ton monthly production system, selling prices declined as the recovery in nonferrous metal market prices was delayed. In addition, broad-based demand continued to decline, particularly in information technology-related markets, and sales of core products at the overseas Thai subsidiary Siam NKS also declined,」
In addition to the existing issues of customers adopting multiple suppliers and a shift overseas, broad-based demand in information technology-related markets declined and sales of core products at the Thai subsidiary fell, indicating that the challenging sales environment continued. - FY2020-Q1WorsenedAnnual report
「Demand continued to decline, particularly in information technology-related markets, and sales of core products at the overseas Thai subsidiary Siam NKS also declined,」
In addition to the existing issues of customers adopting multiple suppliers, a shift overseas and price competition, declining demand in information technology-related markets and lower sales of core products at the Thai subsidiary were specifically identified. - FY2019-Q3WorsenedAnnual report
「In Japan, a challenging business environment continued, including customers adopting multiple suppliers, a shift of production bases overseas and intensifying price competition. In addition, market prices for nonferrous metals, which had contributed to higher sales through the second quarter, began to decline from the latter half of the second quarter, while demand declined broadly, particularly in information technology-related markets. As a result, sales of core products stagnated, although」
In addition to the existing issues of customers adopting multiple suppliers, a shift overseas and price competition, declining demand in information technology-related markets and stagnant sales of core products were specifically identified, indicating that the sales environment had become more challenging. - FY2019-Q2RestatedAnnual report
「In Japan, a challenging business environment continued, including customers adopting multiple suppliers, a shift of production bases overseas and intensifying price competition,」
A challenging business environment continues, including customers adopting multiple suppliers, a shift of production bases overseas and intensifying price competition. - FY2019-Q1RestatedAnnual report
「In Japan, a challenging business environment continued, including customers adopting multiple suppliers, a shift of production bases overseas and intensifying price competition,」
A challenging business environment continues, including customers adopting multiple suppliers, a shift of production bases overseas and intensifying price competition. - FY2018WorsenedAnnual report
「Existing products excluding contract-manufactured products showed some signs of recovery in the third quarter, but sales began to stagnate again in the fourth quarter, particularly in products related to electronic components.」
Following signs of recovery in the third quarter, sales began to stagnate again in the fourth quarter, particularly in products related to electronic components. - FY2018-Q3MitigatedAnnual report
「Against the backdrop of an economic recovery, existing products excluding contract-manufactured products showed signs of recovery in the third quarter.」
Sales volumes of existing products had stagnated amid customers adopting multiple suppliers and a shift of production overseas, but signs of recovery emerged in the third quarter. The disclosure does not state that the recovery was complete. - FY2018-Q2First statedAnnual report
「In Japan, difficult operating conditions continued, including customers adopting multiple sourcing and production sites shifting overseas. Sales volumes of existing products excluding contract-processed products remained sluggish, and sales also declined following the closure of Nexus Elekemik Co., Ltd., among other factors.」
Multiple sourcing by customers and the shift of production overseas continued to create a difficult operating environment, with stagnant sales volumes of existing products and lower sales following the closure of a subsidiary.