Impact of Raw Material and Component Supply Shortages on the Machinery Business
First written in FY2022-Q3. 1 of 4 entries say "Materialised", first in FY2022-Q3. Latest entry: FY2023-Q2.
The whole theme swung hardest in 2021: 43 of 72 companies on the "Worse" side.
25 other companies' latest entry also says "Worsened".
- FY2023-Q2WorsenedAnnual report
「Demand for surface-treatment machinery for semiconductors and electronic components, primarily in the Japanese and Taiwanese markets, remained strong, and net sales exceeded those in the same quarter of the previous year. However, in addition to difficulties procuring materials and longer lead times due to the global shortage of components, prices for various materials used to manufacture surface-treatment machinery, including resin plates, electronic components and filters, rose sharply. As a result, segment profit fell below the level of the same quarter of the previous year. Accordingly, net sales for the six months ended the second quarter of the current fiscal year were ¥3,995 million, up 42.2% year on year, while segment profit was ¥230 million, down 21.5%.」
Although sales in the machinery business increased, segment profit fell 21.5% year on year as component shortages, procurement difficulties and longer lead times continued, compounded by higher material prices. - FY2023-Q1RestatedAnnual report
「During the first quarter of the current fiscal year, Japan's economy continued to face an uncertain outlook. Although efforts to balance COVID-19 infection control with economic activity progressed, concerns remained over the impact of lockdowns that continued in major Chinese cities, including Shanghai, and the situation in Ukraine. In addition to soaring resource prices and supply constraints, the rapid depreciation of the yen also contributed to the uncertainty.」
Supply-side constraints continue to be cited as a source of economic uncertainty, and awareness of the risks associated with constraints on the supply of raw materials and components remains unchanged. - FY2022MitigatedAnnual report
「Because it remains difficult amid the COVID-19 pandemic to procure materials used to manufacture surface-treatment machinery, including electronic components, piping materials, and electric motors, the Company is working to secure materials by reviewing procurement routes and placing orders early.」
While difficulty procuring materials continues in the Machinery Business, the company is implementing measures to secure supplies by reviewing procurement routes and placing orders early. - FY2022-Q3MaterialisedAnnual report
「Demand for semiconductors and electronic components remained firm, but sales and segment profit both fell below the year-earlier quarter due to shortages of raw materials and components and higher logistics costs. As a result, sales for the cumulative third quarter of the fiscal year were ¥4.351 billion, down 24.5% year on year, and segment profit was ¥349 million, down 32.7%.」
In the Machinery Business, demand remained firm, but shortages of raw materials and components had an actual impact on performance, with sales down 24.5% and segment profit down 32.7%.