Risk of market demand and plant shutdowns due to COVID-19
First written in FY2020. 3 of 8 entries say "Mitigated", first in FY2022-Q1. Latest entry: FY2024-Q1.
atect moved to the "Worse" side of this theme in 2020, the same year as the typical company in this theme.
0 other companies' latest entry also says "Mitigated".
- FY2024-Q1MitigatedAnnual report
「As demand for eating out has recovered to almost pre-COVID-19 levels following the reclassification of COVID-19 as a Class 5 infectious disease, demand for home dining, delivery and takeout has also been maintained at a certain level, and sales by our principal customers remained strong.」
Following the reclassification of COVID-19 as a Class 5 disease, demand for dining out recovered to approximately the level before the pandemic, mitigating the impact on demand in the Hygiene Testing Equipment Business. - FY2022MitigatedAnnual report
「We believe that this business grew substantially as changes in eating habits under new lifestyles resulting from the impact of COVID-19 led to a sharp increase in demand for home dining.」
Although market-demand risks from COVID-19 remain, sales in the Hygiene Testing Equipment Business increased 9.2% year on year due to higher demand for home dining, and the PIM business reached the start of mass production. - FY2022-Q2WorsenedAnnual report
「We had been preparing for the agreed October 2021 start of mass production with IHI Corporation, but production is expected to be delayed because of delays in commissioning some equipment and repeated postponements of the entry into Japan of foreign technical intern trainees during the COVID-19 pandemic. The automobile manufacturer's final test, the high-temperature endurance test, has also been delayed by 2 months because of the pandemic and is expected to be completed at the end of October.」
The impact of COVID-19 increased due to the repeated postponement of the entry of foreign technical intern trainees and a 2-month delay in automobile manufacturers’ final testing, affecting the production start schedule for automotive components. - FY2022-Q1MitigatedAnnual report
「In the Hygiene Testing Equipment Business, sales increased 15.3% year on year due to continuing demand for home dining, delivery and takeaway during the COVID-19 pandemic, recovering to a level above that before the pandemic.」
Regarding the impact of COVID-19 on demand, sales in the Hygiene Testing Equipment Business increased 15.3% year on year and recovered to a level above that before the pandemic. No material changes were reported in business and other risks relating to the possibility of plant shutdowns due to infections. - FY2021-Q3WorsenedAnnual report
「Regarding the prototype event for diesel VG turbo components targeted for mass production in October 2021, the components passed the final test, a high-temperature durability test, conducted by the major domestic turbo manufacturer that is our customer, and were scheduled to move on to the automaker's final approval testing. However, we have been informed that the start of the planned testing will be delayed due to the resurgence of COVID-19.」
The resurgence of COVID-19 delayed the start of final approval testing by automobile manufacturers, increasing its impact on existing prototyping and mass-production schedules. - FY2021-Q2MaterialisedAnnual report
「During the 6-month period ended in the second quarter, consolidated group sales declined 12.3% year on year due to the ongoing impact of COVID-19, for which there was no clear end in sight, and prolonged US-China trade friction.」
The impact of COVID-19 and US-China trade friction on market demand continued, resulting in a 12.3% year-on-year decline in consolidated sales for the first half. - FY2021-Q1MaterialisedAnnual report
「During the first quarter of the current consolidated fiscal year, the impact of the prolonged US-China trade friction and the spread of COVID-19 widened. Consolidated group revenue fell 14.4% year on year in the semiconductor materials business, which had expanded continuously for 4 consecutive periods, with shipment volume down 5.1%. In the sanitary inspection equipment business, demand recovery remained slow even after the lifting of the state of emergency, and revenue declined 7.5%. In the PIM business, global weakness in demand for semiconductor equipment and machine tools caused order volume for new projects whose launch had been completed to fall far below expectations, resulting in a 57.6% decline in revenue.」
The spread of COVID-19 has had an actual impact on demand, orders and sales in the Semiconductor Materials, Hygiene Testing Equipment and PIM businesses. - FY2020First statedAnnual report
「If COVID-19 negatively affects the markets served by any of our businesses, it may affect our financial condition and operating results. In addition, if an employee contracts COVID-19 and guidance from a public health center or other authority requires us to suspend plant operations, making production impossible, our operating results may be affected.」
The Company explicitly identified as a new risk the potential negative impact of COVID-19 on markets and the possibility of plant shutdowns and an inability to produce due to internal infections. In practice, the automotive-component prototyping schedule is expected to be delayed by at least 6 months, while operating adjustments at panel manufacturers and difficulties starting up a sintering furnace manufactured in China have also occurred.