Production cuts by major customers due to difficulties procuring components such as semiconductors
First written in FY2023-Q1. 3 of 11 entries say "Worsened", first in FY2023-Q2. Latest entry: FY2027-H1.
Fujikura Composites moved to the "Worse" side of this theme in 2022, 1 year after the typical company in this theme (2021).
The whole theme swung hardest in 2025: 11 of 40 companies on the "Worse" side.
64 other companies' latest entry also says "Mitigated".
- FY2027-H1MitigatedAnnual report
「In the industrial products segment, business earnings were driven by a significant recovery in orders for automotive-related components and housing-equipment-related components in Japan, as well as the normalization of transaction prices.」
The report states that orders for automotive-related components and other products in Japan recovered significantly, following a period when difficulties in procuring components and production cuts by major customers had affected results. - FY2025MitigatedAnnual report
「The core semiconductor market remained firm in both domestic and overseas markets as distribution inventory adjustments were nearly complete and capital investment in AI semiconductors drove demand.」
Conditions changed from difficulties procuring components and production cuts by major customers to a situation in which distribution inventory adjustments in the semiconductor market were nearly complete and domestic and overseas markets were firm, supported by investment in AI semiconductors. - FY2025-H1MitigatedAnnual report
「The Industrial Products segment reported higher revenue as orders for automotive-related components recovered in Japan and overseas and the housing equipment market gradually recovered, but recorded an operating loss because price increases failed to keep pace with rising domestic manufacturing costs and other costs.」
Conditions changed from production cuts and sluggish orders by major customers to a recovery in domestic and overseas orders for automotive-related components and a gradual recovery in the housing equipment-related market. However, higher manufacturing costs and delays in passing costs through to prices remain. - FY2024Automotive orders show signs of recovery, but excess housing-equipment inventories persistAnnual report
「Although signs of a recovery in orders for automotive-related parts were visible, excess distribution inventories of housing equipment-related products in Japan had not been cleared, resulting in an operating loss. However, profit increased as orders recovered in China and the United States, price increases were passed through, and fixed costs were reduced.」
While production and orders by major customers showed signs of recovery, excess distribution inventories in Japan's housing equipment-related businesses remained unresolved, and the delay in order recovery persisted. - FY2024-Q3Customer inventories remain excessive, while automotive orders show signs of recoveryAnnual report
「Although signs of a recovery in orders for automotive-related components were emerging, revenue declined because excess distribution inventory in domestic housing equipment-related products had not yet been cleared. Profit nevertheless increased as order recovery and price pass-through progressed in China and the U.S., together with fixed-cost reductions.」
While orders for automotive-related components showed signs of recovery, excess distribution inventories remained unresolved in Japan's housing equipment-related businesses, continuing to affect orders and operations. - FY2024-Q2Order recovery delayed as excess global distribution inventories remained unresolvedAnnual report
「The Industrial Products segment reported lower revenue because excess global distribution inventories had not yet been resolved and the recovery in orders for the company remained delayed. However, income increased as price pass-through advanced in China and the United States and fixed costs were reduced.」
Excess global distribution inventories have not yet been resolved, and the delay in the recovery of orders for the company continues. However, price pass-through in China and the United States and fixed-cost reductions resulted in higher income despite lower revenue. - FY2024-Q1Customer production began to recover, but orders stalled due to excess distribution inventoriesAnnual report
「In the Industrial Products segment, production by major customers showed signs of partial recovery, but this did not translate into orders for the company because of customers' excess distribution inventories. Utilization rates declined, resulting in an operating loss.」
While production by major customers showed signs of partial recovery, excess customer distribution inventories prevented this from translating into orders, resulting in lower utilization rates and an operating loss. - FY2023WorsenedAnnual report
「The Industrial Products segment reported lower revenue as production cuts by major customers continued because difficulties procuring semiconductors and components remained unresolved. Operating loss resulted as the continued increases in raw material, energy and logistics costs, together with lower utilization rates, substantially exceeded the amounts passed through to selling prices.」
Production cuts by major customers due to difficulties procuring components continued throughout the fiscal year, and the combination of lower utilization rates, higher costs and insufficient price pass-through resulted in an operating loss. - FY2023-Q3WorsenedAnnual report
「The Industrial Products segment reported lower revenue and an operating loss as production cuts at major customers continued due to difficulties procuring components such as semiconductors and disruption caused by China's zero-COVID policy. Results were also affected by external factors including lower operating rates and persistently high raw material, energy and logistics costs, as well as delays in passing these costs through to selling prices.」
Production cuts by major customers due to difficulties procuring components continued, and the combination of disruptions in the Chinese market, lower utilization rates, higher costs and delays in passing costs through to prices resulted in an operating loss. - FY2023-Q2WorsenedAnnual report
「The Industrial Products segment reported lower revenue and an operating loss as production cuts at major customers continued due to difficulties procuring components such as semiconductors and the impact of lockdowns in China. Results were also affected by external factors including lower operating rates and persistently high raw material, energy and logistics costs.」
Production cuts by major customers due to difficulties procuring semiconductors and other components continued, and the combination of China's lockdowns, lower utilization rates, and higher raw material, energy and logistics costs resulted in an operating loss. - FY2023-Q1First statedAnnual report
「The Industrial Products segment reported lower revenue and profit as production rates declined after major customers significantly cut production due to difficulties procuring components such as semiconductors, with results also affected by external factors including soaring raw material, energy and logistics costs.」
The company states that difficulties procuring semiconductors and other components resulted in actual production cuts by major customers, lower equipment utilization, and lower revenue and income in the Industrial Products segment.