Ongoing Cost and Manufacturing Cost Reductions
First written in FY2016. 15 of 32 entries say "Advanced", first in FY2017-Q1. Latest entry: FY2026.
Soken Chemical & Engineering moved to the "Worse" side of this theme in 2022, 1 year before the typical company in this theme (2023).
The whole theme swung hardest in 2022: 3 of 24 companies on the "Worse" side.
1 other company's latest entry also says "Other".
- FY2026Lower operating income despite an improved gross margin and higher selling, general and administrative expensesAnnual report
「Although sales volume remained at the same level as in the same period of the previous year, gross profit rose 2.0% from the previous fiscal year to ¥1,609 million due to lower raw material prices and improved profitability. The gross profit margin rose 0.5 percentage points to 33.6%.」
Although lower raw material prices and improved profitability raised the gross profit margin to 33.6%, operating income fell 2.8% from the previous fiscal year due to higher personnel, logistics, and other expenses. - FY2026-H1WorsenedAnnual report
「Sales fell to ¥2,275 million, down 6.5% year on year, and operating income fell to ¥2,968 million, down 21.7%, while ordinary income fell to ¥2,878 million, down 20.7%, due mainly to a substantial decline in the yen-denominated translation of the Chinese subsidiary's results as the yen appreciated sharply against the same period of the previous year, as well as higher personnel and other expenses」
Despite continuing cost-reduction measures, higher personnel and other expenses and lower translated amounts due to the stronger yen caused operating income to fall 21.7% year on year and ordinary income to fall 20.7%. - FY2025AdvancedAnnual report
「Operating income rose 65.8% from the previous fiscal year to ¥6,347 million, while the operating margin rose 4.0 percentage points to 13.3%.」
In addition to higher adhesive sales, cost reductions, production streamlining, and improved profitability lifted operating income 65.8% from the previous fiscal year and raised the operating margin to 13.3%. - FY2024AdvancedAnnual report
「Gross profit rose 23.3% from the previous fiscal year to ¥1,254 million, due to higher adhesive sales, improved profitability, and raw material prices being lower than in the previous fiscal year. The gross profit margin rose 3.7 percentage points to 30.4%.」
Higher adhesive sales, improved profitability, and lower raw material prices lifted gross profit 23.3% and improved the gross profit margin by 3.7 percentage points, quantifying the benefits of improved earnings. - FY2024-Q3AdvancedAnnual report
「In addition to the benefits of increased production of adhesives for liquid-crystal display applications, cost reductions and improved profitability lifted operating income to ¥3,133 million, up 112.4% year on year, ordinary income to ¥3,126 million, up 88.6%, and net income attributable to owners of the parent to ¥2,362 million, up 106.8%.」
Increased adhesive production, cost reductions, and improved profitability lifted operating income 112.4% year on year, with the effects of cost-reduction and earnings-improvement measures reflected in the figures. - FY2024-Q2AdvancedAnnual report
「In terms of profit, operating profit was ¥1.670 billion, up 53.7% year on year, ordinary profit was ¥1.777 billion, up 22.4%, and profit attributable to owners of the parent was ¥1.374 billion, up 27.3%, owing to the effects of increased production of adhesives for liquid-crystal-display-related applications, cost reductions, and improved profitability.」
The benefits of increased production, cost reductions, and improved profitability pushed operating income and other measures above the same period of the previous year, and the effects of cost-reduction measures were reflected in profit figures. - FY2024-Q1WorsenedAnnual report
「Although passing through higher raw material prices improved profit, the decline in sales of specialty functional materials and processed products could not be offset. Operating income fell to ¥650 million, down 17.8% year on year, ordinary income fell to ¥695 million, down 35.9% due in part to lower foreign exchange gains, and net income attributable to owners of the parent fell to ¥548 million, down 34.4%.」
Although passing through higher costs improved profit, the decline in sales of specialty functional materials and processed products, among others, could not be absorbed, and operating income, ordinary income, and net income attributable to owners of the parent all fell below the same period of the previous year. - FY2023WorsenedAnnual report
「Although price adjustments in response to higher raw material prices had a positive effect on profit, sales of chemicals declined due to production adjustments in the liquid-crystal panel industry. As a result, gross profit fell 0.8% from the previous fiscal year to ¥1,017 million, while the gross profit margin rose 0.1 percentage points to 26.7%.」
Although price adjustments and cost reductions had a positive effect, they could not offset lower sales caused by production adjustments in the liquid-crystal panel industry, resulting in a 0.8% decline in gross profit. - FY2023-Q3WorsenedAnnual report
「Although the company advanced price pass-through and cost-reduction measures in response to higher raw material prices, it was unable to offset the profit decline accompanying lower chemical sales volume. Operating income fell to ¥1,475 million, down 20.4% year on year, ordinary income fell to ¥1,657 million, down 22.3%, and net income attributable to owners of the parent fell to ¥1,142 million, down 32.2%.」
Despite advancing price pass-through and cost-reduction measures, the company could not absorb the profit decline caused by lower chemical sales volume, and operating income, ordinary income, and net income attributable to owners of the parent all fell below the same period of the previous year. - FY2023-Q2WorsenedAnnual report
「The lag in passing through higher raw material prices continued, and factory utilization fell in the second quarter due to customer production adjustments. As a result, operating income fell to ¥1,087 million, down 18.7% year on year, while ordinary income fell 2.0% to ¥1,452 million due in part to foreign exchange gains, and net income attributable to owners of the parent fell 8.4% to ¥1,080 million.」
Despite efforts to pass costs on to customers and reduce costs, the delay in passing through higher raw material prices and lower factory utilization due to customer production adjustments could not be absorbed, and operating income, ordinary income, and net income attributable to owners of the parent all fell below the same period of the previous year. - FY2023-Q1WorsenedAnnual report
「Although higher sales had a positive effect on profit, the lag in passing through higher raw material prices continued. Operating income rose only 1.4% year on year to ¥791 million, while ordinary income rose 21.8% to ¥1,084 million due in part to foreign exchange gains, and net income attributable to owners of the parent rose 21.6% to ¥836 million.」
Despite higher sales and efforts to pass costs on to customers and reduce costs, the growth in operating income was limited to 1.4% year on year due to surging raw material prices and the lag in passing costs through to customers. - FY2022WorsenedAnnual report
「Although increased production accompanying higher sales volume had a positive effect, price increases failed to keep pace with the sharp rise in raw material prices. Gross profit fell 3.1% from the previous fiscal year to ¥1,026 million, and the gross profit margin fell 7.1 percentage points to 26.6%.」
Despite the benefits of increased production and efforts to pass costs on to customers and reduce costs, the sharp rise in raw material prices could not be absorbed, and the gross profit margin fell 7.1 percentage points to 26.6%. - FY2022-Q3WorsenedAnnual report
「Although higher sales had a positive effect on profit, the rise in raw material prices caused by surging crude oil prices and tight supply and demand showed no sign of abating. Despite efforts to reduce costs and pass costs on to customers, short-term deterioration in profitability was unavoidable. Operating income fell to ¥1,853 million, down 24.1% year on year, ordinary income fell to ¥2,132 million, down 13.2%, and net income attributable to owners of the parent fell to ¥1,685 million, down 17.9%.」
Despite the benefits of higher sales and efforts to reduce costs and pass costs on to customers, the rise in raw material prices could not be absorbed, and operating income, ordinary income, and net income attributable to owners of the parent all fell below the same period of the previous year. - FY2022-Q2WorsenedAnnual report
「Although higher sales had a positive effect on profit, the impact of surging raw material prices caused by rising crude oil prices and tight supply and demand was significant. Despite efforts to pass costs on to customers and reduce costs, operating income fell to ¥1,337 million, down 6.5% year on year, ordinary income fell to ¥1,481 million, down 0.1%, and net income attributable to owners of the parent fell to ¥1,179 million, down 1.1%.」
Despite the benefits of higher sales, cost pass-through, and cost-reduction efforts, the impact of surging raw material prices could not be absorbed, and operating income, ordinary income, and net income attributable to owners of the parent all fell below the same period of the previous year. - FY2022-Q1WorsenedAnnual report
「Difficult conditions have continued, including deteriorating margins due to the impact of higher raw material prices caused by rising crude oil prices and tight supply and demand.」
Higher raw material prices deteriorated margins, intensifying external cost pressures on earnings improvements previously driven by cost reductions and increased production. - FY2021AdvancedAnnual report
「Gross profit rose 16.4% from the previous fiscal year to ¥1,058 million, despite higher depreciation expenses, due to lower raw material prices and the benefits of increased production accompanying higher sales volume. The gross profit margin rose 1.9 percentage points to 33.6%.」
Lower raw material prices and the benefits of increased production improved the gross profit margin by 1.9 percentage points to 33.6%. The full-year figures show the benefits of cost improvements. - FY2020AdvancedAnnual report
「Cost of sales fell 11.8% from the previous fiscal year to ¥1,960 million. Gross profit remained at the same level as in the previous fiscal year at ¥909 million, supported by lower raw material prices and cost-reduction efforts, while the gross profit margin rose 2.7 percentage points to 31.7%.」
Despite lower sales, lower raw material prices and cost-reduction efforts improved the gross profit margin by 2.7 percentage points, quantifying the benefits of cost reductions. - FY2020-Q3WorsenedAnnual report
「Although the company worked to reduce raw material costs and expenses, ordinary income fell to ¥1,528 million, down 8.7% year on year, due to the impact of lower profit from reduced sales volume and the recording of foreign exchange losses resulting from the weaker renminbi.」
Although the company worked to reduce raw material costs and expenses, it could not absorb the impact of lower sales volume and foreign exchange losses due to the weaker renminbi, resulting in an 8.7% year-on-year decline in ordinary income. - FY2020-Q2WorsenedAnnual report
「Although the company worked to reduce raw material prices and expenses, it was unable to offset the profit decline caused by lower sales. In addition, it recorded foreign exchange losses due to the weaker renminbi, resulting in ordinary income of ¥878 million, down 17.7% year on year, and net income attributable to owners of the parent of ¥708 million, down 12.7%.」
Although the company worked to reduce raw material costs and expenses, it could not absorb the profit decline caused by lower sales, and the benefits of its cost-reduction measures were insufficient to offset the decline in profit. - FY2019WorsenedAnnual report
「In the current fiscal year, sales of chemicals for liquid-crystal display-related applications in the Chinese market increased, while orders received and revenue from completed projects for equipment systems rose against a backdrop of solid domestic capital investment. As a result, sales reached a record high for the second consecutive fiscal year. Profit, however, fell below the previous fiscal year because the company was unable to offset the impact of higher raw material prices despite efforts to pass costs on to customers.」
Despite efforts to pass costs on to customers, the impact of higher raw material prices could not be absorbed, resulting in record-high sales but lower profit than in the previous fiscal year. - FY2018AdvancedAnnual report
「Although the company was affected by higher raw material prices, ordinary income rose to ¥2.6 billion, up 36.4% from the previous consolidated fiscal year, and net income attributable to owners of the parent rose to ¥1,964 million, up 46.3%, due to the benefits of increased production, ongoing cost-reduction efforts, and lower foreign exchange losses, among other factors.」
Ordinary income rose 36.4% and net income attributable to owners of the parent rose 46.3%, driven by ongoing cost reductions and the benefits of increased production. - FY2018-Q3AdvancedAnnual report
「Although the company was affected by higher raw material prices, ordinary income rose to ¥2,259 million, up 61.4% year on year, and net income attributable to owners of the parent rose to ¥1,785 million, up 73.1%, due to the benefits of increased production, ongoing cost-reduction efforts, and lower foreign exchange losses, among other factors.」
Ordinary income and net income attributable to owners of the parent exceeded the same period of the previous year, driven by the benefits of increased production and ongoing cost-reduction efforts. - FY2018-Q2AdvancedAnnual report
「Although profits were affected by higher raw-material prices, the effects of increased production and ongoing cost-reduction efforts, together with the decrease in foreign-exchange losses from the previous year, lifted ordinary profit 59.7% year on year to ¥1,217 million, while profit attributable to owners of the parent rose 76.8% to ¥936 million.」
The company states that ongoing cost-reduction efforts and the benefits of increased production led to a 59.7% increase in ordinary income and a 76.8% increase in net income attributable to owners of the parent. - FY2018-Q1AdvancedAnnual report
「Although profits were affected by higher raw-material prices, the effects of increased production and ongoing cost-reduction efforts lifted ordinary profit 54.6% year on year to ¥550 million, while profit attributable to owners of the parent rose 77.6% to ¥420 million.」
The company states that ongoing cost reductions and the benefits of increased production led to profit improvement, including a 54.6% increase in ordinary income and a 77.6% increase in net income attributable to owners of the parent. - FY2017AdvancedAnnual report
「Although sales volume increased, cost of sales fell 3.9% from the previous fiscal year to ¥1,701 million due to lower manufacturing costs and other factors, while the gross profit margin rose 2.9 percentage points to 34.9%.」
Lower manufacturing costs reduced cost of sales by 3.9% and improved the gross profit margin by 2.9 percentage points. - FY2017-Q3AdvancedAnnual report
「Although the company recorded foreign exchange losses due to the stronger yen, ordinary income rose to ¥1,399 million, up 62.4% year on year, and net income attributable to owners of the parent rose to ¥1,031 million, up 91.1%, due to lower depreciation expenses, streamlining of the production and supply structure, and cost-reduction efforts.」
The company identifies lower depreciation expenses, streamlining of the production and supply structure, and cost-reduction efforts as factors behind profit improvement, and quantifies the increases in ordinary income and net income attributable to owners of the parent. - FY2017-Q2AdvancedAnnual report
「Although the company recorded foreign exchange losses due to the stronger yen, ordinary income rose to ¥762 million, up 81.2% year on year, and net income attributable to owners of the parent rose to ¥529 million, up 121.8%, due to lower depreciation expenses, streamlining of the production and supply structure, and cost-reduction efforts.」
The disclosure links the streamlining of the production and supply structure and cost-reduction efforts to increases in ordinary income and net income attributable to owners of the parent. - FY2017-Q1AdvancedAnnual report
「As a result of progress from its ongoing cost-reduction efforts, ordinary income rose to ¥355 million, up 58.9% year on year, and net income attributable to owners of the parent rose to ¥236 million, up 72.9%.」
The company quantified the contribution of ongoing cost reductions to profit improvement in the first quarter. - FY2016First statedAnnual report
「The company reported progress from its ongoing cost-reduction efforts.」
It states that the gross profit margin increased 1.9 percentage points from the previous fiscal year due to lower manufacturing costs.