Demand, Operations and Supply-Chain Risks from COVID-19
First written in FY2020. 3 of 8 entries say "Worsened", first in FY2021-Q1. Latest entry: FY2023-Q1.
Daicel moved to the "Worse" side of this theme in 2022, 2 years before the typical company in this theme (2024).
The whole theme swung hardest in 2022: 3 of 12 companies on the "Worse" side.
0 other companies' latest entry also says "Worsened".
- FY2023-Q1WorsenedAnnual report
「Although sales volumes for some products declined due to the impact of lockdowns in China and reduced automobile production, we steadily captured sales opportunities and increased sales volumes for products with growing demand. We also passed soaring raw material and fuel prices and logistics costs through to selling prices and implemented thorough cost reductions.」
Regarding infectious disease-related risks, lockdowns in China and reduced automotive production materialized as lower sales volumes for certain products. At the same time, the Company captured the recovery in demand and implemented price pass-throughs and cost reductions. - FY2022-Q3Additional logistics disruptions alongside recovering demandAnnual report
「During the cumulative first 3 quarters of the current consolidated fiscal year, the global economy remained uncertain. Although some economic activity affected by COVID-19 showed signs of recovery, the period was marked by the renewed spread of COVID-19, automotive production cuts due to semiconductor shortages, and logistics disruptions.」
In addition to the renewed spread of COVID-19 and semiconductor shortages, logistics disruptions were explicitly identified as sources of uncertainty. Meanwhile, earnings improved year on year as demand recovered, with risks persisting alongside the recovery. - FY2022-Q1The risk of a renewed spread of infection persists amid recovering demandAnnual report
「As demand recovered from the effects of COVID-19, which had significantly affected the same period of the previous year, revenue for the cumulative first quarter of the current consolidated fiscal year was ¥111.358 billion, up 34.3% year on year.」
Demand recovered from the significant effects of COVID-19 in the same period of the previous year, resulting in a 34.3% year-on-year increase in revenue. Meanwhile, uncertainty about the outlook for the global economy continued due to the renewed spread of infection. - FY2021MitigatedAnnual report
「Although the group was affected by sluggish demand across various industries in the first half of the fiscal year, it worked intensively to reduce costs and steadily captured sales opportunities arising from the recovery in demand, including automobile production, restoring results as the period progressed.」
The Company explained that although weak demand caused by COVID-19 affected the first half of the fiscal year, earnings recovered toward the second half as the recovery in demand, including automotive production, was captured. - FY2021-Q3MitigatedAnnual report
「During the current consolidated fiscal year, the Group’s economic activities in Japan and overseas were constrained in the first half. For the second half, although the effects of COVID-19 continued during the third quarter of the current consolidated fiscal year, demand recovered more than expected, and as of now the Company expects the recovery trend to continue during the fourth quarter.」
The effects of COVID-19 continued into the third quarter, but demand recovered more than expected, and the Company expects the recovery trend to continue in the fourth quarter. The Company continued to disclose the possibility that a longer-than-expected spread of the infection could affect accounting estimates. - FY2021-Q2WorsenedAnnual report
「The Group was affected mainly by lower demand for automotive airbag inflators and engineering plastics due to COVID-19. While carefully considering the situation based on available information, it is difficult to accurately predict how the infection will spread or when it will subside. If the effects of the spread of COVID-19 continue longer than expected, or if the conditions or assumptions underlying the estimates change, this could affect the valuation of deferred tax assets and other items, as well as impairment losses on property, plant and equipment and intangible assets, from the current consolidated fiscal year onward.」
The Company also indicated that continued declines in demand for automotive safety components and engineering plastics due to COVID-19, together with a prolonged spread of the infection, could affect estimates for deferred tax assets and impairment of fixed assets. - FY2021-Q1WorsenedAnnual report
「The Group was affected mainly by lower demand for automotive airbag inflators and engineering plastics due to COVID-19.」
The decline in demand caused by COVID-19 continued into the first quarter, affecting revenue and profit, particularly for automotive airbag inflators and engineering plastics. The Company stated that if the spread of the infection were to continue longer than expected, it could also affect accounting estimates, including impairment losses. - FY2020MaterialisedAnnual report
「With respect to serious infectious diseases such as novel influenza and COVID-19, economic activity may be restricted to prevent the spread of infection. If an infectious disease becomes widespread and large numbers of employees and business partners become infected, plant operating rates may decline or production may cease, and supply chains may be disrupted, potentially adversely affecting the performance of the Group.」
Infectious disease risk was disclosed explicitly as a standalone risk item for the first time, and its effects during the fiscal year emerged as lower demand in China and declining sales of automotive safety components and engineering plastics.