Production and Logistics Rationalization and Cost Reduction
First written in FY2016. 18 of 30 entries say "Advanced", first in FY2017-Q1. Latest entry: FY2026.
The whole theme swung hardest in 2025: 3 of 25 companies on the "Worse" side.
20 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「Although domestic cement sales volumes fell below the previous fiscal year, net sales increased by ¥2,359 million, or 1.5%, to ¥158,799 million, and operating income increased by ¥4,617 million, or 526.0%, to ¥5,495 million, mainly due to increases in domestic selling prices to address higher costs.」
In addition to price revisions, improved costs and other factors substantially improved operating profit in the cement business, with the effects of rationalization and earnings improvement reflected in the full-year figures. - 2026-05-13AdvancedEarnings
「Although domestic cement sales volumes fell below the previous fiscal year, net sales increased by ¥2,359 million, or 1.5%, to ¥158,799 million, and operating income increased by ¥4,617 million, or 526.0%, to ¥5,495 million, mainly due to increases in domestic selling prices to address higher costs.」
Operating income in the cement business improved substantially for the full year due to higher selling prices and measures to address cost increases. - FY2025AdvancedAnnual report
「In addition to domestic cement sales volumes falling below the previous fiscal year, revenue declined by ¥5,189 million, or 3.2%, to ¥156,440 million due mainly to lower purchase prices in the electricity supply business. However, operating profit improved by ¥2,313 million to ¥877 million due mainly to improved manufacturing costs and other factors.」
Despite lower sales volumes, the cement business improved from an operating loss to operating profit of ¥877 million due mainly to improved manufacturing costs and other factors. The effects of rationalization and cost improvements were reflected in the full-year figures. - FY2025-H1AdvancedAnnual report
「Profitability improved by ¥1,373 million from the year-earlier level due to improved manufacturing costs, but the company recorded an operating loss of ¥1,665 million.」
In the cement business, profitability improved by ¥1,373 million year on year due to improved manufacturing costs, with the effects of production rationalization and cost improvements reflected in the figures. However, the operating loss continues. - FY2024Rationalization benefits coexist with cost burdensAnnual report
「Although sales volume was below the previous fiscal year's level, revenue increased by ¥19,768 million, or 14.1%, year on year to ¥160,113 million, mainly because the Group implemented domestic selling price increases in response to higher costs. Profitability improved by ¥17,790 million from the previous fiscal year, but the Group recorded an operating loss of ¥1,752 million.」
Although the cement business's profitability improved substantially through price revisions and investment in its production and logistics infrastructure, cost burdens remain and the operating loss continues. - FY2024-Q2Higher production costs in some businessesAnnual report
「Due to higher sales volumes of precast concrete products, revenue increased by ¥189 million, or 1.8%, year on year to ¥10,533 million. However, operating profit declined by ¥106 million, or 15.4%, to ¥588 million due mainly to higher production costs.」
Even in the building materials business, where sales volumes increased, operating profit declined by 15.4% due to higher production costs. The effects of rationalization and cost reductions have not been uniform, and cost burdens vary by business. - FY2023-Q3Operating loss widens due to high coal prices even after price increasesAnnual report
「Although sales volumes fell below the year-earlier level, revenue increased by ¥8,491 million, or 9.0%, year on year to ¥103,104 million, due mainly to higher domestic selling prices to offset cost increases. However, due mainly to surging coal prices and other factors, the business recorded an operating loss of ¥15,271 million, a deterioration of ¥16,242 million from the year-earlier level.」
Although domestic selling prices were increased, the cement business recorded an operating loss of ¥15,271 million due mainly to surging coal prices and other factors, and the year-on-year deterioration widened. - FY2023-Q2Operating loss due to high coal prices even after price increasesAnnual report
「Although sales volumes fell below the year-earlier level, revenue increased by ¥3,588 million, or 5.8%, year on year to ¥65,008 million, due mainly to higher domestic selling prices to offset cost increases. However, due mainly to surging coal prices and other factors, the business recorded an operating loss of ¥11,399 million, a deterioration of ¥12,270 million from the year-earlier level.」
Although domestic selling prices were increased, the cement business recorded an operating loss of ¥11,399 million due mainly to surging coal prices and other factors, indicating that the cost burden could not be absorbed through rationalization and price measures alone. - FY2023-Q1Continued cost burden on the cement business due to high coal pricesAnnual report
「Due mainly to improved cement selling prices, revenue increased by ¥1,177 million, or 3.9%, year on year to ¥31,101 million. However, due mainly to surging coal prices, the business recorded an operating loss of ¥5,411 million, a deterioration of ¥6,332 million from the year-earlier level.」
Although selling prices improved, the cement business recorded an operating loss due to surging coal prices, indicating a cost burden distinct from the effects of rationalization and cost improvements. - FY2022Diverging effects of rationalization by businessAnnual report
「Due mainly to higher sales volumes of limestone for overseas and domestic steelmakers, …Operating profit increased by ¥423 million, or 23.0%, from the previous fiscal year to ¥2,264 million, due mainly to improved mining costs. …Due in part to a decline in electrical equipment construction and the application of the revenue recognition accounting standard and other changes, revenue declined by ¥122 million, or 2.4%, from the previous fiscal year to ¥4,954 million. However, operating profit increased by ¥84 million, or 5.2%, to ¥1,725 million due mainly to cost reductions.」
While the figures show the effects of improved mining costs and cost reductions in mineral products and other businesses, respectively, the cement business has been strongly affected by surging coal prices, and the benefits of rationalization vary by business. - FY2022-Q3AdvancedAnnual report
「Due mainly to a decline in electrical equipment construction, revenue declined by ¥166 million, or 4.4%, year on year to ¥3,603 million. However, operating profit increased by ¥45 million, or 3.8%, to ¥1,245 million due mainly to cost reductions.」
In other businesses, operating profit increased by 3.8% due mainly to cost reductions despite lower revenue, with the effects of the rationalization measures reflected in the figures. - FY2022-Q2AdvancedAnnual report
「Due mainly to a decline in electrical equipment construction, revenue declined by ¥164 million, or 6.2%, year on year to ¥2,504 million. However, operating profit increased by ¥114 million, or 14.3%, to ¥912 million due mainly to cost reductions.」
In other businesses, operating profit increased by 14.3% year on year due mainly to cost reductions, with the effects of the rationalization measures reflected in the figures. - FY2022-Q1Cement profit declines due to surging coal pricesAnnual report
「Although cement sales volumes exceeded the year-earlier level, revenue was ¥29,923 million due to the application of the revenue recognition accounting standard and other changes (year-earlier revenue: ¥41,712 million). Operating profit declined by ¥477 million, or 34.2%, to ¥920 million due mainly to surging coal prices.」
Despite higher sales volumes, cement operating profit declined by 34.2% year on year due to surging coal prices. The figures indicate a cost burden distinct from profit improvement through production and logistics rationalization. - FY2021AdvancedAnnual report
「We also rationalized logistics by integrating vessel allocation with Nippon Steel Cement Co., Ltd. Going forward, we will continue to strengthen the business foundation by expanding logistics rationalization, developing our production and logistics systems and making necessary investments, including in environmental initiatives.」
The company integrated vessel allocation with Nippon Steel Cement, putting logistics rationalization into practice. For the full year, cement operating profit increased by 17.3% due to reductions in production and other costs, with the effects of rationalization also reflected in the figures. - FY2021-Q3AdvancedAnnual report
「Due mainly to domestic sales volumes falling below the year-earlier level, revenue declined by ¥2,543 million, or 1.8%, year on year to ¥140,131 million. However, operating profit increased by ¥1,383 million, or 24.5%, to ¥7,037 million, due mainly to reductions in production and other costs following the decline in coal prices.」
Despite lower domestic sales volumes, operating profit in the cement business increased by 24.5% year on year due to reductions in production and other costs following the decline in coal prices. - FY2021-Q2AdvancedAnnual report
「Due to domestic sales volumes falling below the year-earlier level, revenue declined by ¥4,919 million, or 5.3%, year on year to ¥88,464 million. However, operating profit increased by ¥454 million, or 15.9%, to ¥3,311 million due mainly to reductions in production costs.」
Despite lower domestic sales volumes, operating profit in the cement business increased by 15.9% due to reductions in production costs, with the effects of the rationalization measures again reflected in the quarterly figures. - FY2021-Q1AdvancedAnnual report
「Due mainly to sales volumes falling below the year-earlier level, revenue declined by ¥5,093 million, or 10.9%, year on year to ¥41,712 million. However, operating profit increased by ¥24 million, or 1.8%, to ¥1,398 million due mainly to reductions in production and other costs. Due mainly to a decline in electrical equipment construction, revenue declined by ¥328 million, or 24.0%, to ¥1,040 million. However, operating profit increased by ¥12 million, or 3.5%, to ¥365 million due mainly to cost reductions.」
Despite lower sales volumes, cement operating profit increased by 1.8% due to reductions in production and other costs, while operating profit in other businesses increased by 3.5% due to cost reductions. The effects of the rationalization measures were again reflected in the figures for the quarter. - FY2020AdvancedAnnual report
「Due mainly to sales volumes falling below the previous fiscal year, revenue declined by ¥4,856 million, or 2.5%, to ¥188,800 million. However, operating profit increased by ¥667 million, or 8.8%, to ¥8,247 million due mainly to reductions in production and other costs.」
Despite lower cement sales volumes, operating profit increased by 8.8% due to reductions in production and other costs, demonstrating the full-year effect of the rationalization measures. - FY2020-Q3AdvancedAnnual report
「Due mainly to cement sales volumes falling below the year-earlier level, revenue declined by ¥3,949 million, or 2.7%, year on year to ¥142,675 million. However, operating profit increased by ¥83 million, or 1.5%, to ¥5,653 million, due mainly to reductions in production and other costs following the decline in coal prices.」
Despite lower cement sales volumes, operating profit increased by 1.5% year on year due to reductions in production and other costs following the decline in coal prices, demonstrating the concrete effect of cost improvements. - FY2020-Q2AdvancedAnnual report
「Due to higher sales volumes of optical communications components for new transmission systems, revenue increased by ¥610 million, or 23.7%, year on year to ¥3,184 million, and operating profit improved by ¥229 million to ¥28 million, helped in part by improved production costs. Due to lower sales volumes of secondary-battery cathode materials, revenue declined by ¥450 million, or 38.6%, to ¥717 million. Profitability improved by ¥53 million from the year-earlier level due mainly to improved production costs, but the business recorded an operating loss of ¥16 million. Due mainly to a decline in electrical equipment construction, revenue declined by ¥317 million, or 10.0%, to ¥2,854 million, but operating profit increased by ¥177 million, or 25.8%, to ¥867 million due mainly to cost reductions.」
The figures show improved production costs in optoelectronics and battery materials and higher profit from cost reductions in other businesses, indicating that the rationalization measures have produced concrete results in some businesses. - FY2019-Q3Continued impact of higher costs, but narrower decline in profitAnnual report
「Due mainly to cement sales volumes exceeding the year-earlier level, revenue increased by ¥4,563 million, or 3.2%, year on year to ¥146,625 million. However, operating profit declined by ¥3,949 million, or 41.5%, to ¥5,570 million, due mainly to surging coal prices.」
Despite higher cement sales volumes, operating profit declined by 41.5% year on year due to surging coal prices. The decline in profit narrowed from 50.0% in the previous quarter, but the impact of higher costs continues. - FY2019-Q2Continued impact of higher costsAnnual report
「Due mainly to cement sales volumes exceeding the year-earlier level, revenue increased by ¥625 million, or 0.7%, year on year to ¥93,249 million. However, operating profit declined by ¥2,860 million, or 50.0%, to ¥2,854 million, due mainly to surging coal prices.」
Despite higher sales volumes, cement profit declined sharply due to surging coal prices. In some businesses, the impact of higher costs has been more pronounced than the benefits of cost reductions and rationalization. - FY2019-Q1Diverging cost trends by businessAnnual report
「Due mainly to cement sales volumes exceeding the year-earlier level, revenue increased by ¥1,495 million, or 3.3%, year on year to ¥47,349 million. However, operating profit declined by ¥1,186 million, or 45.3%, to ¥1,433 million, due mainly to surging coal prices. Revenue from ground-improvement construction increased by ¥358 million, or 10.5%, to ¥3,777 million, but operating profit declined by ¥18 million, or 22.0%, to ¥66 million, due mainly to higher production costs for precast concrete products. Due to lower sales volumes of optical communications components for new transmission systems and other products, revenue declined by ¥586 million, or 37.3%, to ¥986 million. Profitability improved by ¥63 million from the year-earlier level, due mainly to lower production costs, but the business recorded an operating loss of ¥67 million.」
While surging coal prices and higher production costs for building materials weighed on profit, optoelectronics benefited from lower production costs and a narrower loss, with the effects of cost reductions and rationalization diverging by business. - FY2018-Q3Higher costs in some businessesAnnual report
「Although limestone sales volumes fell below the year-earlier level, revenue increased by ¥31 million, or 0.3%, year on year to ¥9,140 million, due mainly to higher sales at subsidiaries. Operating profit declined by ¥74 million, or 4.1%, to ¥1,742 million, due mainly to higher mining costs.」
Mining costs, which had previously been improving, increased, resulting in a 4.1% year-on-year decline in operating profit from mineral products. Higher costs also reduced profit in battery materials, indicating that the benefits of cost reductions have receded in some businesses. - FY2018-Q1AdvancedAnnual report
「Due mainly to higher sales volumes of cathode materials for rechargeable batteries, revenue was ¥738 million, up ¥189 million, or 34.4%, year on year, and operating profit was ¥70 million, up ¥41 million, or 144.8%, mainly due to cost reductions and other factors.」
Operating profit in the battery materials business increased by 144.8% year on year due mainly to cost reductions, demonstrating the concrete effects of the rationalization measures. - FY2017AdvancedAnnual report
「Due mainly to sales volumes of aggregates and limestone falling below the previous fiscal year, revenue declined by ¥779 million, or 6.1%, to ¥12,019 million. However, operating profit increased by ¥39 million, or 1.7%, to ¥2,290 million, due mainly to improved mining costs.」
Despite lower sales volumes, operating profit in the mineral products business increased by 1.7% due to improved mining costs, demonstrating the full-year effect of rationalization and cost reductions. - FY2017-Q3AdvancedAnnual report
「Due mainly to higher sales volumes of cathode materials for rechargeable batteries, revenue was ¥5,460 million, up ¥216 million, or 4.1%, year on year, and operating profit was ¥903 million, up ¥523 million, or 137.8%, mainly due to cost reductions and other factors.」
Operating profit in other businesses increased by 137.8% year on year due mainly to cost reductions. The concrete effects of the cost-reduction initiatives continue to be evident. - FY2017-Q2AdvancedAnnual report
「Due mainly to sales volumes of aggregates and limestone falling below the year-earlier level, revenue declined by ¥776 million, or 11.4%, year on year to ¥6,059 million. However, operating profit increased by ¥11 million, or 1.0%, to ¥1,200 million, due mainly to improved mining costs.」
Despite lower sales volumes, operating profit from mineral products increased by 1.0% due to improved mining costs, demonstrating the continued effect of cost improvements. - FY2017-Q1AdvancedAnnual report
「Due mainly to sales volumes of limestone and aggregates falling below the year-earlier level, revenue declined by ¥409 million, or 12.1%, year on year to ¥2,979 million. However, operating profit increased by ¥11 million, or 2.2%, to ¥554 million, due mainly to improved mining costs.」
The cost-reduction initiatives have produced concrete results, including improved mining costs in mineral products and higher operating profit from cost reductions in other businesses. - FY2016First statedAnnual report
「The Group promoted the stable supply of cement and other products while working as a group to reduce costs and pursue other initiatives for sustainable development.」
These measures are intended to improve the profitability of the core businesses through reductions in production and other costs, improvements in mining costs, selective capital investment, more efficient use of assets and rationalization.