Profit Pressure from Higher Depreciation Expense Associated with Capital Investment
First written in FY2020-Q1. 4 of 8 entries say "Materialised", first in FY2020-Q2. Latest entry: FY2025.
Hosoya Pyro-Engineering moved to the "Worse" side of this theme in 2019, 1 year before the typical company in this theme (2020).
The whole theme swung hardest in 2026: 6 of 14 companies on the "Worse" side.
4 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「Personnel costs also increased due to wage increases and the payment of year-end allowances, but earnings increased substantially as the effect of higher sales was supplemented by thorough improvements in operating efficiency.」
While the burden of higher personnel and equipment-related costs continued, a substantial increase in profit during the fiscal year, driven by higher revenue and improved work efficiency, eased the pressure that fixed costs placed on profit. - FY2024MitigatedAnnual report
「In terms of earnings, fixed costs increased as the Company invested in human capital and plant and equipment, but earnings increased as improvements in workability across all operations enhanced profitability.」
Although the increase in fixed costs associated with capital investment continued, profit increased as improvements in work efficiency and profitability across all operations eased the pressure that the capital investment burden placed on profit during the fiscal year. - FY2022MaterialisedAnnual report
「Fixed costs increased as a result of capital investment to improve the working environment and efforts to improve employee compensation, resulting in lower profit than in the previous fiscal year.」
The increased burden of depreciation and other costs associated with capital investment actually emerged in business performance as higher fixed costs and lower profit. - FY2021MitigatedAnnual report
「In terms of profit and loss, efforts to update machinery and equipment and review work practices to improve profitability proved effective. As a result, the profit margin improved significantly despite investment in improving employee compensation and the work environment.」
Although depreciation associated with capital investment continued to increase, the effects of machinery and equipment upgrades and work-process reviews absorbed the investment burden and improved the profit margin. - FY2021-Q2MaterialisedAnnual report
「However, manufacturing costs rose as a result of higher outsourcing expenses due to the acceleration of the production plan and higher depreciation from continued capital investment. In addition, repair costs for products delivered to the Ministry of Defense increased, resulting in lower profit.」
The increase in depreciation associated with ongoing capital investment has actually emerged as a factor behind higher manufacturing costs and lower profit. - FY2020-Q3MaterialisedAnnual report
「In terms of profit and loss, cost reductions from process improvements for each product achieved a certain level of results, but profit declined compared with the previous fiscal year because of the effects of capital investment, improved employee compensation and investments in personnel to support business expansion.」
The burden associated with capital investment, together with personnel expenses and investment in human resources, has actually emerged in business performance as a factor behind the decline in profit from the previous fiscal year. - FY2020-Q2MaterialisedAnnual report
「Profit declined from the previous fiscal year, mainly due to higher depreciation resulting from capital expenditures planned continuously since the previous fiscal year and higher personnel costs associated with improving employee compensation.」
The increase in depreciation associated with capital investment, together with higher personnel expenses, has actually emerged in business performance as a factor behind the decline in profit. - FY2020-Q1First statedAnnual report
「In terms of profit and loss, although the company continued to improve efficiency in the manufacturing process, profit declined year on year because of higher personnel expenses resulting from improved employee compensation and higher depreciation expenses from capital investment.」
The increase in depreciation associated with capital investment, together with higher personnel expenses from improving employee compensation, has for the first time been identified independently as a factor behind the year-on-year decline in profit. Depreciation was ¥13,506 thousand, up from ¥12,431 thousand in the same period of the previous year.