Selling Expense Burden and Profit Decline from Increased North American Sales Staff
First written in FY2017-Q3. 4 of 13 entries say "Worsened", first in FY2018-Q1. Latest entry: FY2024-Q3.
The whole theme swung hardest in 2023: 8 of 11 companies on the "Worse" side.
4 other companies' latest entry also says "Mitigated".
- FY2024-Q3MitigatedAnnual report
「Specialty lubricant revenue increased substantially due to higher volumes resulting from increased automobile production. Shipments of high-value-added products, including low-application-volume release agents, also progressed steadily. As a result, revenue from external customers in the segment was ¥872 million, up 14.4% year on year, and segment profit was ¥112 million, up 43.1% year on year.」
In North America, sales and profit improved due to shipments of higher-value-added products and increased automobile production, temporarily easing the impact of the previously observed deterioration in profitability caused by the burden of selling, general and administrative expenses. - FY2024-Q1WorsenedAnnual report
「Specialty lubricant revenue increased substantially due to higher volumes resulting from increased automobile production in Mexico. As a result, revenue from external customers in the segment was ¥278 million, up 53.0% year on year, but segment profit was ¥11 million, down 23.4% from the prior fiscal year, due to higher general and administrative expenses.」
In North America, although sales increased 53.0% year on year, segment profit declined 23.4% year on year due to higher general and administrative expenses, with the risk to profitability from the cost burden re-emerging. - FY2023-Q2WorsenedAnnual report
「Although volumes declined due to lower operating rates at Japanese automakers in Mexico and other factors, revenue increased due to price adjustments and the yen's depreciation. As a result, revenue from external customers in the segment was ¥436 million, up 1.0% year on year, but segment profit was ¥32 million, down 57.9% from the prior fiscal year, due to the impact of higher raw material prices.」
In North America, segment profit declined 57.9% year on year due to lower volumes and higher raw material prices. Sales increased only slightly as a result of selling price adjustments and the weaker yen. - FY2022AdvancedAnnual report
「As in other regions, increased automobile production resulted in higher sales of specialty lubricants, including die-casting lubricants. Expanded sales of the focus product, low-application-volume die-casting release agent, also progressed steadily. As a result, segment revenue was ¥813 million, up 27.3% from the prior fiscal year, and segment profit was ¥107 million, up 151.5% from the prior fiscal year.」
In North America, segment profit increased 151.5% from the previous fiscal year due to expanded sales of low-application-volume die-casting release agents and the recovery in automobile production. - FY2022-Q1MitigatedAnnual report
「Automobile production remained at roughly the same level as the year-earlier period, held back by supply disruptions in petroleum-related products caused by the global semiconductor shortage and severe cold weather. Despite these conditions, sales of specialty lubricants increased through expanded sales of low-application-volume die-casting release agents and cutting fluids, while total sales increased only slightly year on year due to lower sales of sulfonates. As a result, segment sales were ¥209 million, up 3.4% year on year, and segment profit was ¥35 million, up 24.4% year on year.」
Despite the continuing semiconductor shortage and supply disruptions in North America, expanded sales and higher-value-added products led to a 24.4% year-on-year increase in segment profit, easing the deterioration in profitability caused by the burden of selling expenses. - FY2021MitigatedAnnual report
「As a result, segment sales were ¥639 million, down 12.9% from the previous fiscal year, but segment profit was ¥43 million, compared with a segment loss of ¥21 million in the previous fiscal year, due to the higher sales mix of higher-value-added products and controls on selling, general and administrative expenses.」
In North America, although sales continued to decline, the segment improved from a loss of ¥21 million in the previous fiscal year to profit of ¥43 million due to the higher sales mix of higher-value-added products and controls on selling, general and administrative expenses. - FY2021-Q3AdvancedAnnual report
「As a result, segment sales were ¥460 million, down 18.9% year on year, but segment profit was ¥40 million, compared with a segment loss of ¥6 million in the year-earlier period, due to the higher sales mix of higher-value-added products and controls on selling, general and administrative expenses.」
In North America, sales declined 18.9% year on year, while the segment improved from a ¥6 million loss in the year-earlier period to ¥40 million in profit due to the higher sales mix of higher-value-added products and controls on selling, general and administrative expenses. - FY2021-Q2MitigatedAnnual report
「As a result, segment sales were ¥282 million, down 23.3% year on year, but segment profit was ¥15 million, compared with a segment loss of ¥9 million in the year-earlier period, due to the higher sales mix of higher-value-added products and controls on selling, general and administrative expenses.」
Although sales declined in North America, the segment returned to profit from a loss, including the burden of selling expenses, due to controls on selling, general and administrative expenses and other factors, posting profit of ¥15 million. - FY2018-Q3RestatedAnnual report
「As a result, segment sales were ¥636 million, up 2.0% year on year, while the segment posted a loss of ¥3 million, compared with profit of ¥50 million in the year-earlier period, due to higher personnel expenses resulting from the increase in staff and costs related to the acquisition of a company, among other factors.」
In North America, personnel expenses due to the increase in staff and acquisition-related costs continued to be incurred, resulting in a segment loss of ¥3 million compared with profit in the year-earlier period. - FY2018-Q2WorsenedAnnual report
「As a result, segment sales were ¥408 million, down 5.3% year on year, while the segment posted a loss of ¥3 million, compared with profit of ¥25 million in the year-earlier period, due to higher personnel expenses resulting from the increase in staff and costs related to the acquisition of a company, among other factors.」
In North America, in addition to higher personnel expenses due to the increase in staff, costs related to an acquisition were incurred, causing the segment to deteriorate from profit to a loss of ¥3 million. - FY2018-Q1WorsenedAnnual report
「Automobile sales volumes declined year on year for 5 consecutive months from the beginning of the year. Against this backdrop, sales of the core die-casting fluids exceeded the year-earlier period, while sales of sulfonates fell below the year-earlier period. As a result, segment sales were ¥206 million, down 5.4% year on year, while segment profit was ¥8 million, down 55.1% year on year, due to higher selling, general and administrative expenses resulting from the increase in staff.」
In North America, automobile sales volumes fell below the year-earlier period for 5 consecutive months, and the burden of higher selling expenses due to the increase in staff continued. As a result, sales declined 5.4% year on year and segment profit declined 55.1%. - FY2017RestatedAnnual report
「As a result, segment sales were ¥831 million, down 3.9% from the previous fiscal year, while segment profit was ¥52 million, down 40.5% from the previous fiscal year, due mainly to higher selling expenses associated with the increase in sales staff.」
In North America, the burden of higher selling expenses associated with the increase in sales staff continued, resulting in a 40.5% year-on-year decline in segment profit. - FY2017-Q3First statedAnnual report
「As a result, segment sales were ¥623 million, down 6.6% year on year, while segment profit was ¥50 million, down 41.6% year on year, due to higher selling expenses associated with the increase in sales staff.」
In North America, higher selling expenses associated with the increase in sales staff resulted in a 41.6% year-on-year decline in segment profit.