Delayed Profitability and Impairment Indicators at the New U.S. Plant
First written in FY2023. 5 of 6 entries say "Mitigated", first in FY2024. Latest entry: FY2026.
2 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「(North America) In North America, although customer production volumes declined in Mexico, sales increased by ¥535 million, or 1.2%, from the previous consolidated fiscal year to ¥46,872 million, owing to higher customer production volumes in the United States and new orders for exterior parts. Segment profit (operating profit) increased by ¥2,649 million, or 89.6%, to ¥5,607 million, reflecting the positive effect of higher sales in the United States and foreign-exchange effects resulting from the appreciation of the Mexican peso.」
Higher customer production volumes in the United States and new orders for exterior parts resulted in higher sales and profit in the North America segment, and earnings improvement in the North American business, including the new U.S. plant, is progressing. - 2026-05-13MitigatedEarnings
「Net sales increased by ¥535 million, or 1.2%, year on year to ¥46,872 million, owing to an increase in customer production volumes in the United States and new orders for exterior parts. Segment profit (operating profit) increased by ¥2,649 million, or 89.6%, year on year to ¥5,607 million, owing to the increase in revenue in the United States and foreign-exchange effects arising from the appreciation of the Mexican peso.」
The North America segment recorded increases in both revenue and profit, confirming improved profitability in the U.S. business in the full-year results. - FY2026-H1MitigatedAnnual report
「In North America, although sales declined due to lower customer production volumes and tooling sales in Mexico, sales increased by ¥1,920 million, or 8.2%, from the same period of the previous year to ¥25,203 million, owing to higher customer production volumes in the United States and new orders for exterior parts. Segment profit (operating profit) increased by ¥902 million, or 47.4%, to ¥2,807 million, reflecting the positive effect of higher sales in the United States and foreign-exchange effects in Mexico, despite the impact of lower sales in Mexico.」
Higher customer production volumes in the United States and new orders for exterior parts resulted in higher sales and profit in the North America segment. Although this does not directly indicate that the new U.S. plant itself became profitable, earnings improvement in the North American business is continuing. - FY2025MitigatedAnnual report
「Revenue increased by ¥9,541 million, or 6.0%, from the previous fiscal year to ¥168,561 million, due to the full-year contribution from two-shift production at the U.S. manufacturing site and the impact of translating into yen, among other factors.」
Regarding the delayed profitability and impairment indicators at the new U.S. plant, the contribution from 2-shift production for the full fiscal year resulted in sales of ¥46,336 million and operating profit of ¥2,957 million for the Central and North America segment. - FY2024MitigatedAnnual report
「However, during the consolidated fiscal year, a major customer began production on a two-shift, day-and-night basis, sales volume to the customer exceeded the plan and operating income was recorded. In addition, operating profitability is expected under the business plan for the following consolidated fiscal year and beyond. Accordingly, we determined that there was no indication of impairment.」
Regarding the delayed profitability and impairment indicators at the new U.S. plant, the company recorded operating profit as 2-shift production by customers began and sales exceeded plan, and determined that there were no impairment indicators for the fiscal year. - FY2023MaterialisedAnnual report
「For DaikyoNishikawa USA Inc., which was determined to have delayed profitability and indicators of impairment because production adjustments by major customers and the delayed start of production on a 2-shift basis, against a backdrop of shortages in the supply of automotive parts, including semiconductors, delayed the timing of profitability compared with the original business plan, the company assessed whether to recognize an impairment loss. As total undiscounted future cash flows exceeded the carrying amount of the assets, comprising ¥23,962 million in property, plant and equipment and ¥345 million in intangible assets, no impairment loss was recognized.」
At the new U.S. plant, profitability was delayed and indicators of impairment emerged because of production adjustments by major customers and the delay in starting 2-shift production. No impairment loss itself was recognized.