Customer Inventory Adjustments and Slower Progress on Capital Investment Projects
First written in FY2017-Q1. 10 of 31 entries say "Mitigated", first in FY2018-Q1. Latest entry: 2026-08-12.
Cluster Technology moved to the "Worse" side of this theme in 2021, 1 year before the typical company in this theme (2022).
The whole theme swung hardest in 2023: 9 of 16 companies on the "Worse" side.
1 other company's latest entry also says "Materialised".
- 2026-08-12MaterialisedFinancial results
「Sales in the office equipment field declined year on year because sales failed to grow owing to the impact of inventory adjustments at certain customers.」
The impact of customer inventory adjustments materialized as lower sales in the first quarter. - FY2026MitigatedAnnual report
「In the Macro Technology-related business, the recovery in sales of resin-molded products and resin molding materials continued from the second half of the previous fiscal year, supported by active domestic capital investment and demand for renewal of power receiving equipment, while mold sales also contributed, resulting in a substantial year-on-year increase.」
The impact of stagnant customer demand and capital investment projects eased, and revenue in the macro-technology-related business increased 21.9% year on year. - FY2025MitigatedAnnual report
「Although orders remained sluggish in the first half of the fiscal year under review, partly reflecting a reaction to the previous fiscal year's results, they recovered in the second half, narrowing the year-on-year decline.」
Weak customer demand and order intake occurred in the first half of the fiscal year, but recovered in the second half, narrowing the decline in revenue in the macro-technology-related business. - FY2025-H1MaterialisedAnnual report
「In the Macro Technology-related business, sales of both resin-molded products and resin molding materials had remained solid since the second half of the previous fiscal year, supported by active domestic capital investment and demand for renewal of power receiving equipment installed during the bubble era. However, orders were sluggish during the interim accounting period, resulting in a substantial year-on-year decline.」
Weak order intake materialized in the macro-technology-related business, resulting in a 16.0% decline in revenue and a 24.8% decline in segment profit. - FY2024-Q3MaterialisedAnnual report
「Sales in the industrial equipment field declined year on year despite increased sales of new models and other products, due to delays in ramping up mass production of new models and a decline in mold sales.」
In the industrial equipment field, delays in ramping up mass production of new models and lower mold sales materialized as a year-on-year decline in sales. The impact of slower progress on customer production and capital investment projects continues. - FY2024-Q2MaterialisedAnnual report
「Sales in the industrial equipment field declined year on year despite increased sales of new models and other products, due to the impact of inventory adjustments at some customers and a decline in mold sales.」
Inventory adjustments at some customers and lower mold sales materialized as a year-on-year decline in sales in the industrial equipment field. Meanwhile, sales across the macro-technology-related business increased due to demand for product updates. - FY2024-Q1MitigatedAnnual report
「In the macro-technology-related business, revenue from both resin-molded products and resin molding materials increased significantly year on year as demand for product updates from some customers overlapped with other demand.」
Although the impact of inventory adjustments at some customers and other factors remains, revenue in the macro-technology-related business increased 33.4% year on year due to demand for product updates, partially easing the impact of stagnant customer demand and capital investment projects during the quarter. - FY2023-Q3RestatedAnnual report
「In the nano/micro-technology-related business, sales, which had been expected to improve from the second half onward, remained sluggish, particularly in the industrial equipment field and inkjet-related components, because production of products ordered by the company was adjusted amid the economic slowdown caused by China’s lockdowns and the impact of semiconductor shortages affecting products made by some customers.」
The industrial equipment field and other areas have remained sluggish due to China’s lockdowns, semiconductor shortages and production adjustments. - FY2023-Q2MaterialisedAnnual report
「The industrial equipment field declined significantly year on year due to the impact of China’s lockdowns and customer production adjustments.」
China’s lockdowns and customer production adjustments materialized as a decline in sales in the industrial equipment field. - FY2022WorsenedAnnual report
「In the macro-technology-related business, resin molding materials and resin-molded products are both relatively resilient to economic trends, but revenue declined due to lower sales to some customers and supply shortages caused by an accident at a raw-material manufacturer.」
In addition to lower sales to some customers, supply shortages caused by an accident at a raw-material manufacturer occurred, contributing to the decline in revenue in the macro-technology-related business. - FY2022-Q3WorsenedAnnual report
「In the macro technology-related business, although both resin molding materials and resin-molded products are relatively resistant to economic trends, sales have declined due to lower sales to certain customers. Sales of functional resin composite materials, resin-molded insulators, and molds and components for the cumulative third quarter amounted to ¥119 million, down 9.3% year on year, while segment profit was ¥30 million, up 7.8%.」
Sales to some customers continued to decline, resulting in a 9.3% year-on-year decrease in revenue in the macro-technology-related business. The impact of weaker customer demand and lower sales has materialized in the quarterly results. - FY2022-Q2MitigatedAnnual report
「In the macro-technology-related business, revenue from functional resin composite materials, resin-molded insulators, and molds and parts for the cumulative second quarter was ¥80 million, down 13.6% year on year, while segment profit was ¥20 million, up 0.5%.」
Revenue continued to decline, down 13.6% year on year, but the decline narrowed from the 25.0% year-on-year decrease in FY2022-Q1, while segment profit increased 0.5% year on year. - FY2022-Q1WorsenedAnnual report
「In the macro-technology-related business, revenue from functional resin composite materials, resin-molded insulators, and molds and parts for the cumulative first quarter was ¥39 million, down 25.0% year on year, while segment profit was ¥10 million, down 18.7%.」
In the macro-technology-related business, revenue declined 25.0% year on year and segment profit declined 18.7%. Lower sales to some customers, which continued from the previous fiscal year, materialized in the quarterly results. - FY2021WorsenedAnnual report
「In the macro-technology-related business, sales declined despite the relative resilience of resin molding materials and resin-molded products to economic trends, partly due to a reaction to the increase in maintenance demand for electrical equipment such as high-voltage switchgear and distribution boards in the previous fiscal year. In the next fiscal year, demand is expected from regular replacement needs, as well as from products used in infrastructure supporting lifelines, such as undergrounding of power lines and resin-insulated components for high-voltage switchgear and distribution boards. However, sales are expected to remain weak because sales to some customers are projected to decline.」
Sales declined as a reaction to the increase in maintenance demand in the previous fiscal year, and sales are expected to remain weak in the next fiscal year due to lower sales to some customers. - FY2021-Q3WorsenedAnnual report
「In the macro-technology-related field, both resin molding materials and resin-molded products declined slightly despite being relatively resilient to economic trends.」
The macro-technology-related field remained firm but declined slightly. Revenue for the cumulative third quarter was down 14.3% year on year, while segment profit was up 12.7%. - FY2021-Q1MitigatedAnnual report
「In the macro technology-related business, sales of functional resin composite materials, resin-molded insulators, and molds and components for the cumulative first quarter amounted to ¥52 million, up 11.6% year on year, while segment profit was ¥12 million, up 96.3%.」
Revenue and segment profit in the macro-technology-related business exceeded the previous year’s levels, and the impact of previously reported stagnation in customer demand and capital investment projects eased during the quarter. - FY2020MitigatedAnnual report
「In the macro-technology-related business, demand for molded products such as insulators and functional resin molding materials (Epohard®) remained firm, supported by overlapping maintenance demand for electrical equipment such as high-voltage switchgear and distribution boards, and sales increased.」
Although slower progress on capital investment projects and inventory adjustments had been issues, demand remained firm and sales increased due to maintenance demand for electrical equipment. - FY2020-Q3MitigatedAnnual report
「In the macro-technology-related field, sales of both resin-molded products and resin composite materials increased slightly. However, profit margins on resin-molded products remain extremely tight, partly due to soaring raw-material costs, although the effects of initiatives to improve profitability launched this fiscal year are gradually emerging.」
Although profit margins remain under pressure from soaring raw-material costs, sales growth and the effects of profitability improvement initiatives are gradually emerging, indicating that pressure on demand and profitability has eased somewhat. - FY2020-Q2RestatedAnnual report
「In the macro-technology-related field, sales of resin composite materials increased, but profit margins on resin-molded products remain extremely tight, partly due to soaring raw-material costs.」
While sales of resin composite materials increased, profit margins on resin-molded products remain tight due to soaring raw-material costs. - FY2020-Q1WorsenedAnnual report
「In the macro-technology-related field, sales of resin composite materials increased, but profit margins on resin-molded products remain extremely tight, partly due to soaring raw-material costs.」
While sales of resin composite materials increased, profit margins on resin-molded products remain extremely tight due to soaring raw-material costs. - FY2019ReframedAnnual report
「In the macro-technology-related business, demand for general high-voltage switchgear and distribution boards and molded products for the heavy electrical equipment industry remained firm, but sales volumes of molding materials did not grow. In addition, higher component and raw-material prices have made it difficult to generate profit, and this situation continues.」
The assessment has shifted from one focused on inventory adjustments and slower progress on capital investment projects to one in which, despite firm demand, stagnant sales volumes of molding materials and higher component and raw-material prices are making it difficult to generate profit. - FY2019-Q3MitigatedAnnual report
「In the macro technology-related field, orders overall have increased toward the end of the fiscal year, maintaining solid conditions.」
The disclosure states that overall orders increased toward the end of the fiscal year and that the business remained firm, despite slower progress on capital investment projects and sluggish demand seen in the previous fiscal year. - FY2019-Q2RestatedAnnual report
「In the macro technology-related field, although demand for general high-voltage switchgear and distribution equipment and from the power industry remains flat, demand for replacement heavy electrical equipment components and conversions from existing materials has kept business conditions solid.」
While general demand was flat, it remained firm due to replacement and changeover demand, and the impact of sluggish customer demand continues to be described as limited. - FY2019-Q1MitigatedAnnual report
「In the macro technology-related field, although demand for general high-voltage switchgear and distribution equipment and from the power industry remains flat, orders for resin insulation components are increasing.」
Demand for general high-voltage switchgear and distribution boards and from the power industry was flat, but orders for resin-insulated components increased, partially easing the impact of the demand and capital investment stagnation seen in the previous fiscal year. - FY2018WorsenedAnnual report
「In the macro-technology-related business, revenue from functional resin composite materials, resin-molded insulators, and molds and parts was ¥167 million, down 11.1% year on year, while segment profit was ¥26 million, down 30.2%.」
In the macro-technology-related business, revenue declined 11.1% year on year and segment profit declined 30.2%, quantifying performance pressure from demand and competitive conditions. - FY2018-Q3WorsenedAnnual report
「In the macro-technology-related business, demand for new molds and mold replacements reached a peak, resulting in year-on-year declines in both molding materials and molded-insulator-related products. As a result, revenue from composite materials for molded insulators, composite molded insulators, and molds and parts was ¥127 million, down 11.3% year on year, while segment profit was ¥21 million, down 23.6%.」
As demand for new molds and mold replacements reached a peak, revenue in the macro business declined 11.3% year on year and segment profit declined 23.6%. The impact of sluggish capital investment and demand has been quantified. - FY2018-Q1MitigatedAnnual report
「In the macro-technology-related field, demand for general high-voltage switchgear and distribution boards and for the power industry has remained firm, but the company’s revenue tends to be affected by business trends between its supply customers, meaning customers to which it sells its products, and power equipment manufacturers. In the current first quarter, sales to its supply customers remained firm.」
Demand from the power industry and sales to supply customers remained firm, and the impact of customer inventory adjustments and sluggish capital investment eased during the quarter. However, dependence on business trends between sales customers and power equipment manufacturers remains. - FY2017RestatedAnnual report
「Sales to the heavy electrical equipment industry grew only slightly because the outlook for the domestic economy was uncertain and domestic capital investment remained sluggish.」
The company reaffirmed sluggish domestic capital investment as a constraint on the demand environment. At the same time, it also disclosed an increase in orders for construction projects for the full fiscal year. - FY2017-Q3RestatedAnnual report
「In the macro-technology-related business, sales of molds, including for infrastructure projects, increased despite continued customer inventory adjustments.」
Although customer inventory adjustments are continuing, the disclosure reports growth in mold sales, including sales related to infrastructure projects. - FY2017-Q2RestatedAnnual report
「In the macro-technology-related business, order intake progressed slowly for new capital investment projects, and customer inventory adjustments also contributed to a decline in combined sales of molding materials and molded insulators.」
Slower progress in orders for new capital investment projects and customer inventory adjustments continue to weigh on sales. - FY2017-Q1MaterialisedAnnual report
「In the macro-technology-related business, order intake progressed slowly for new capital investment projects, and customer inventory adjustments also contributed to a decline in combined revenue from molding materials and molded insulators. As a result, revenue from composite materials for molded insulators, composite molded insulators, and molds and parts for the cumulative first quarter was ¥38 million, down 12.0% year on year, while segment profit was ¥8 million, down 8.8%.」
Customer inventory adjustments and slower progress in orders for capital investment projects materialized as declines in revenue and segment profit in the macro business.