Burden from upfront investment and rising costs
First written in FY2017-Q1. 16 of 39 entries say "Worsened", first in FY2019-Q3. Latest entry: 2026-08-06.
Fukoku moved to the "Worse" side of this theme in 2019, 1 year after the typical company in this theme (2018).
The whole theme swung hardest in 2020: 6 of 21 companies on the "Worse" side.
6 other companies' latest entry also says "Mitigated".
- 2026-08-06MitigatedEarnings
「Operating profit increased 51.4% year on year to ¥1,515 million, as the company absorbed increases in raw material and labor costs, among others, through productivity improvements, streamlining, selling-price pass-through and other measures, in addition to higher net sales,」
The company explains that it absorbed increases in raw material and labor costs through productivity improvements, streamlining, selling-price pass-through and other measures, resulting in a 51.4% year-on-year increase in operating profit. - FY2026WorsenedAnnual report
「While net sales remained broadly in line with the same period of the previous year, the company pursued measures to improve productivity, rationalize operations and reflect costs in selling prices, but was unable to absorb increases in raw material and labor costs and other expenses.」
Although the company pursued productivity improvements, rationalization and reflecting costs in selling prices, it was unable to absorb increases in raw material and labor costs and other expenses, resulting in operating profit of ¥3,806 million, down 19.4% year on year. - FY2026-H1WorsenedAnnual report
「Although sales remained sluggish and the company pursued measures to improve productivity, rationalize operations and reflect costs in selling prices, it was unable to absorb increases in raw material and labor costs and other expenses, resulting in operating profit of ¥1,549 million, down 24.8% year on year.」
The company said that although it pursued productivity improvements, rationalization and reflecting costs in selling prices, it was unable to absorb increases in raw material and labor costs and other expenses, resulting in a 24.8% year-on-year decline in operating profit. - FY2025MitigatedAnnual report
「Although affected negatively by higher raw material and labor costs and other factors, the company continued to pursue rationalization and improvements to its operating base throughout the year.」
The company said that despite continued increases in raw material and labor costs, rationalization and improvements to its operating base resulted in operating profit of ¥4,721 million, up 29.5% year on year. - FY2025-H1MitigatedAnnual report
「Operating profit rose 94.5% year on year to ¥2,060 million, as the impact of higher raw material and fuel costs was absorbed through rationalization, reflecting the increases in selling prices and other measures.」
The company said it absorbed higher raw material and fuel costs through rationalization, reflecting them in selling prices and other measures, resulting in a 94.5% year-on-year increase in operating profit. - FY2024MitigatedAnnual report
「Operating profit rose 81.4% year on year to ¥3,646 million, as the impact of higher raw material and fuel costs was absorbed through rationalization, reflecting the increases in selling prices and other measures.」
The company said it absorbed higher raw material and fuel costs by reflecting them in selling prices through rationalization and other measures, resulting in an 81.4% year-on-year increase in operating profit. - FY2024-Q3MitigatedAnnual report
「Operating profit rose 69.0% year on year to ¥2,254 million, as the impact of higher raw material and fuel costs was absorbed through rationalization, reflecting the increases in selling prices and other measures.」
The company said it absorbed higher raw material and fuel costs through rationalization and reflecting them in selling prices and other measures, resulting in a 69.0% year-on-year increase in operating profit. - FY2024-Q2RestatedAnnual report
「Operating profit rose 29.6% year on year to ¥1,059 million, as the impact of higher raw material and fuel costs was absorbed through rationalization, reflecting the increases in selling prices and other measures」
The company said it continued to absorb higher raw material and fuel costs through rationalization and reflecting them in selling prices, resulting in a 29.6% year-on-year increase in operating profit. - FY2024-Q1MitigatedAnnual report
「Operating profit rose 49.1% year on year to ¥667 million, as the impact of higher raw material and fuel costs was absorbed through rationalization, reflecting the increases in selling prices and other measures」
Although raw material and fuel costs continued to rise, the increases were absorbed through rationalization and reflecting them in selling prices, resulting in a 49.1% year-on-year increase in operating profit, according to the company. - FY2023MitigatedAnnual report
「Operating profit rose 14.9% year on year to ¥2,010 million, as the impact of external factors, including higher raw material, transportation and fuel costs, was absorbed through corporate efforts such as production in optimal locations worldwide, improved yield and rationalization, as well as passing costs on to selling prices」
The company said that the continued increases in raw material, transportation and fuel costs were absorbed through production in optimal locations, improved yield, rationalization and passing costs on to selling prices. - FY2023-Q3WorsenedAnnual report
「Operating profit declined 26.2% year on year to ¥1,334 million, as rationalization efforts and other measures were insufficient to offset the impact of higher raw material, transportation and fuel costs」
The increase in raw material, transportation and fuel costs could not be fully absorbed through rationalization efforts and other measures, resulting in a 26.2% year-on-year decline in operating profit, according to the company. The burden of higher costs continues to be reflected in lower profit. quantified=true、materialized=true。 - FY2023-Q2WorsenedAnnual report
「The decline in capacity utilization due to production adjustments by automakers, as well as increases in raw material, transportation and fuel costs resulting from soaring resource prices, is having a significant impact on earnings.」
In addition to the existing cost burden, the decline in capacity utilization caused by production adjustments by automakers and higher raw material, transportation and fuel costs are having a significant impact on earnings. - FY2023-Q1WorsenedAnnual report
「In terms of earnings, operating profit was ¥447 million, down 66.6% year on year, largely due to the impact of higher raw material, transportation and fuel costs,」
In addition to earnings pressure from upfront investment and higher costs, rising raw material, transportation and fuel costs were reflected in a 66.6% year-on-year decline in operating profit. - FY2022MitigatedAnnual report
「The increase in costs, including raw material, transportation and fuel costs, which rose far more than anticipated, was offset by continued efforts to strengthen the Group's operating base and improve its production structure, resulting in operating profit of ¥1,749 million, up 152.4% year on year.」
Although raw material, transportation and fuel costs continue to rise, the increase in costs was offset by strengthening the operating base and improving the production structure, resulting in a 152.4% year-on-year increase in operating profit, according to the company. - FY2022-Q3RestatedAnnual report
「Although rising raw material prices and transportation costs pushed up manufacturing costs, operating profit was ¥1,808 million, compared with a ¥304 million loss in the same period of the previous year,」
Although manufacturing costs continue to rise due to raw material prices and transportation costs, operating profit improved from a loss in the same period of the previous year to ¥1,808 million. - FY2022-Q2WorsenedAnnual report
「In addition, soaring raw material prices and transportation costs are pushing up manufacturing costs.」
In addition to the existing upfront investment and cost burdens, soaring raw material prices and transportation costs are described as new cost pressures pushing up manufacturing costs. - FY2022-Q1MitigatedAnnual report
「Improvement initiatives, including rationalizing production processes and improving the efficiency of indirect operations, undertaken to lower break-even revenue from the previous year proved effective, and operating profit was ¥1.337 billion, compared with ¥37 million in the same period of the previous year.」
The effects of measures to address earnings pressure, including upfront investment and cost burdens, are becoming evident in a substantial improvement in operating profit, driven by the streamlining of production processes and more efficient administrative operations. - FY2021MitigatedAnnual report
「In response to the substantial decline in orders, we undertook a range of improvement initiatives to lower break-even revenue, including rationalizing production processes, developing multi-skilled workers, improving the efficiency of indirect operations, and optimizing personnel allocation. As a result, profitability steadily improved and returned to the black.」
It states that multiple improvement initiatives enabled a return to profitability for the full fiscal year despite the decline in orders and cost burden, improving profitability. - FY2021-Q3MitigatedAnnual report
「In terms of profit and loss, profitability has steadily improved as a result of initiatives to develop an operating structure capable of generating profit even when revenue declines.」
It explains that profitability has steadily improved through initiatives to develop an operating structure capable of generating profit even when revenue declines, indicating progress in addressing the pressure on profitability from upfront investment and rising costs. However, operating loss was ¥304 million. - FY2021-Q2WorsenedAnnual report
「Vibration Isolation Business: Orders declined substantially due to the impact of the COVID-19 pandemic, and revenue decreased 28.3% year on year to ¥10.775 billion. Segment profit decreased 92.3% year on year to ¥92 million due to lower revenue and the burden of upfront investment to increase production, among other factors.」
In addition to lower revenue caused by the pandemic, the burden of upfront investment to increase production compounded the decline, reducing segment profit in the Vibration Isolation Business by 92.3% year on year. - FY2021-Q1WorsenedAnnual report
「While prioritizing measures to ensure employee safety in each region and adjusting production in response to the decline in orders, we implemented emergency measures, including productivity improvements and fixed-cost reductions, but these measures were not implemented in time to absorb the sharp decline in orders,」
Although emergency measures such as production adjustments, productivity improvements, and fixed-cost reductions were implemented, they could not absorb the sharp decline in orders, and pressure from costs and on profitability continues. - FY2020WorsenedAnnual report
「At a time when the Group's profitability had declined due to pressure from the costs of upfront investment and delays in improving the operating structure of existing businesses, the impact of the spread of the COVID-19 pandemic was added to these factors.」
It explains that the impact of the spread of the pandemic compounded the decline in profitability caused by upfront investment costs and delays in improving the operating structure of existing businesses. - FY2020-Q3WorsenedAnnual report
「In terms of profit and loss, in addition to lower revenue and higher personnel and other costs, operating profit decreased 61.3% year on year to ¥752 million, ordinary profit decreased 58.1% to ¥883 million, and quarterly net profit attributable to owners of the parent decreased 47.2% to ¥688 million.」
Higher personnel and other costs combined with lower revenue, resulting in substantial declines in operating profit, ordinary profit, and quarterly net profit attributable to owners of the parent. - FY2020-Q2WorsenedAnnual report
「In terms of profit and loss, in addition to lower revenue and higher personnel and other costs, operating profit decreased 53.3% year on year to ¥739 million, ordinary profit decreased 57.3% to ¥748 million, and quarterly net profit attributable to owners of the parent decreased 43.1% to ¥715 million.」
In addition to upfront investment and the existing cost burden, higher personnel and other costs combined with lower revenue, resulting in declines in operating profit, ordinary profit, and profit attributable to owners of the parent. - FY2020-Q1WorsenedAnnual report
「Segment profit decreased 3.8% year on year to ¥700 million due to the impact of lower revenue in China, the burden of upfront investment to increase production, and higher material and labor cost ratios, among other factors.」
In addition to the burden of upfront investment to increase production, higher material and labor cost ratios have actually emerged as factors reducing profit. - FY2019WorsenedAnnual report
「At present, profitability has temporarily weakened due to pressure from the costs of past upfront investment and delays in improving the operating structure of existing businesses, but」
In addition to the costs of upfront investment, delays in improving the operating structure of existing businesses are explicitly identified as a cause of lower profitability. Operating profit also declined 29.7% year on year. - FY2019-Q3WorsenedAnnual report
「In terms of profit and loss, a combination of factors, including market and currency market disruptions stemming from US-China trade friction, higher material and labor costs, changes in the product mix of major businesses, and delays in production transfers and rationalization, resulted in operating profit declining 13.1% year on year to ¥1.942 billion and ordinary profit declining 11.9% to ¥2.109 billion.」
In addition to the existing cost burden from upfront investment, higher material and labor costs and delays in transfers and rationalization combined to result in actual declines in operating profit and ordinary profit. - FY2019-Q2RestatedAnnual report
「At present, we are being pressured by rising costs resulting from upfront investment, but」
It describes a situation in which rising costs associated with upfront investment continue to weigh on results. - FY2019-Q1RestatedAnnual report
「At present, we are being pressured by rising costs resulting from upfront investment, but」
It describes a situation in which rising costs associated with upfront investment continue to weigh on results. - FY2018RestatedAnnual report
「As a result, costs associated with adding and refurbishing operating sites, expanding product lines overseas, and strengthening head-office functions, including R&D, are a burden, but」
It continues to identify the cost burden associated with developing operating sites, expanding product lines overseas, and strengthening head-office functions. - FY2018-Q3RestatedAnnual report
「For the time being, we are being pressured by rising costs resulting from upfront investment, but」
It describes a situation in which rising costs resulting from upfront investment continue to weigh on results. - FY2018-Q2RestatedAnnual report
「For the time being, we are being pressured by rising costs resulting from upfront investment, but」
It states that rising costs resulting from upfront investment are expected to remain a burden. - FY2018-Q1RestatedAnnual report
「For the time being, we are being pressured by rising costs resulting from upfront investment, but」
Upfront investment and rising costs associated with developing operating sites and expanding the business continue to be a burden. - FY2017RestatedAnnual report
「As a result, costs associated with adding and refurbishing operating sites, expanding product lines overseas, and strengthening head-office functions, including R&D, are a burden, but」
It continues to identify the cost burden associated with developing operating sites, expanding products overseas, and strengthening head-office functions. - FY2017-Q3RestatedAnnual report
「In terms of profit and loss, operating profit decreased 27.9% year on year to ¥2.079 billion due to higher manufacturing and administrative costs and the burden on the hose business in Thailand,」
Higher manufacturing and administrative costs and the burden of overseas operations continue to weigh on profit. - FY2017-Q2RestatedAnnual report
「As a result, we are bearing the burden of upfront investment and rising costs, but」
Upfront investment and rising costs associated with developing operating sites, expanding overseas sales of product lines, and strengthening head-office functions continue to be a burden. In addition, ¥3.105 billion was spent on the acquisition of property, plant and equipment. - FY2017-Q1First statedAnnual report
「As a result, we are bearing the burden of upfront investment and rising costs, but」
It states that upfront investment and rising costs associated with global expansion and strengthening the Group's operating structure are already emerging as a burden.