Lower profit in the Ceramics Business and higher revenue in the Engineering Business

「By business, revenue from the Ceramics business rose 7.0% year on year to ¥3,899.113 million, as market conditions in the electronic components industry, our main customer base, showed signs of recovery. In terms of earnings, although raw material prices and other costs remained elevated, increased orders improved the factory operating rate, and the cost-of-sales ratio improved by 2.8 percentage points year on year. As a result, segment profit rose 41.4% year on year to ¥401.411 million. Meanwhile, revenue from the Engineering business rose 10.3% year on year to ¥1,421.008 million, as capital investment, particularly in the automotive and heavy machinery sectors, remained firm. Segment profit rose 12.7% year on year to ¥95.218 million, due largely to the effect of higher revenue.」

「Revenue from the Ceramics business fell 1.7% year on year to ¥7,405.514 million, as the recovery in market conditions in the electronic components industry, our main customer base, during the second half was insufficient to offset the weakness in the first half. In terms of earnings, …segment profit fell 37.8% year on year to ¥448.532 million. Revenue from the Engineering business fell 1.4% year on year, but …segment profit fell 4.0% year on year to ¥189.300 million.」

「By business, revenue from the Ceramics business fell 2.5% year on year to ¥3,643.258 million, as market conditions in the electronic components industry, our main customer base, remained sluggish. In terms of earnings, the cost-of-sales ratio rose 4.2 percentage points year on year due to higher raw material and energy prices and inflation in logistics and other costs. As a result, segment profit fell 33.6% year on year to ¥283.923 million. Meanwhile, revenue from the Engineering business fell 0.7% year on year to ¥1,288.285 million, despite the decline in revenue, as capital investment, particularly in the automotive and heavy machinery sectors, remained firm from the previous year. Segment profit rose 34.2% year on year to ¥84.523 million, driven by higher sales of high-margin heating equipment.」

「Revenue from the Ceramics business fell 8.0% year on year to ¥7,529.800 million, as market conditions in the electronic components industry, our main customer base, remained sluggish. …The Engineering business performed well, supported by strong market conditions in the automotive, heavy machinery and steel industries, among others, with revenue rising 6.2% year on year to ¥2,709.600 million.」

「Under these conditions, revenue from the Ceramics business was ¥5,466.360 million, down 10.2% year on year, while revenue from the Engineering business was ¥1,911.540 million, up 1.0% year on year. As a result, third-quarter revenue was ¥7,377.901 million, down 7.5% year on year. In terms of earnings, the Ceramics business was significantly affected by lower revenue and remained in a difficult environment due to persistently high energy and raw material prices, resulting in segment profit of ¥526.298 million, down 33.5% year on year. The Engineering business benefited significantly from improved margins on measuring instruments, with segment profit rising 40.7% year on year to ¥110.617 million.」

「Under these conditions, revenue from the Ceramics business was ¥3,735.596 million, down 8.9% year on year, while the Engineering business generated revenue of ¥1,297.694 million, up 8.2% year on year. …The Ceramics business's cost-of-sales ratio improved by 0.2 percentage points year on year to 73.6%, but segment profit fell 14.4% year on year to ¥427.847 million due to lower revenue. The Engineering business benefited significantly from higher revenue, with segment profit rising 49.6% year on year to ¥62.989 million.」

「Under these conditions, revenue in the company's core Ceramics business decreased 8.2% year on year to ¥1,873.252 million, while revenue in the Engineering business decreased 2.7% to ¥598.506 million. As a result, first-quarter revenue decreased 6.9% year on year to ¥2,471.759 million. In terms of earnings, the Ceramics business benefited from a 1.0-percentage-point year-on-year decline in the cost of sales ratio, partly because energy prices, which had continued to rise, fell in some areas. However, the impact of lower revenue was greater, and segment profit decreased 14.3% year on year to ¥220.335 million. The Engineering business also posted lower revenue, and segment profit decreased 26.2% year on year to ¥20.932 million.」

「In the Ceramics business, the company pursued active sales efforts and continued to review selling prices as described above, resulting in a 7.4% year-on-year increase in revenue to ¥8,181.672 million. The Engineering business also performed well, supported by active market conditions for semiconductors, electronic components, and related products, resulting in an 8.2% year-on-year increase in revenue to ¥2,551.465 million.」

「Under these conditions, revenue in the company's Ceramics business increased 7.7% year on year to ¥6,086.683 million, while revenue in the Engineering business increased 13.0% to ¥1,893.517 million. As a result, third-quarter revenue increased 9.0% year on year to ¥7,980.200 million. In terms of earnings, the Ceramics business benefited from higher plant operating rates supported by strong orders. Although conditions were difficult due to higher energy and raw material prices, the gradual pass-through to selling prices took effect, resulting in a 7.6% year-on-year increase in segment profit to ¥790.891 million. The Engineering business benefited significantly from higher revenue, with segment profit increasing 69.7% year on year to ¥78.613 million.」

「Revenue in the Ceramics business increased 9.2% year on year to ¥4,101.903 million, while revenue in the Engineering business increased 11.8% to ¥1,199.003 million. As a result, second-quarter revenue increased 9.8% year on year to ¥5,300.906 million. In terms of earnings, the Ceramics business posted higher revenue, but segment profit decreased 3.2% year on year to ¥499.777 million due partly to a 0.7-percentage-point increase in the cost of sales ratio caused by higher raw material prices and other factors. The Engineering business benefited significantly from higher revenue, with segment profit increasing 39.4% year on year to ¥42.114 million.」

「Under these conditions, revenue in the company's core Ceramics business increased 10.0% year on year to ¥2,040.405 million, while revenue in the Engineering business increased 28.2% to ¥614.910 million. As a result, first-quarter revenue increased 13.7% year on year to ¥2,655.315 million. In terms of earnings, the Ceramics business posted higher revenue, but segment profit decreased 6.5% year on year to ¥257.238 million because the cost of sales ratio increased 1.50 percentage points due to higher raw material prices and other factors. The Engineering business benefited significantly from higher revenue, with segment profit increasing 195.5% year on year to ¥28.380 million.」

「In terms of earnings, strong orders increased the plant operating rate in the Ceramics business, resulting in a 399.1% year-on-year increase in segment profit to ¥734.716 million. In the Engineering business, the effect of higher revenue was significant, and segment profit increased substantially to ¥46.334 million from ¥0.877 million in the same period of the previous year.」

「In terms of earnings, the Ceramics business posted a 291.2% year-on-year increase in segment profit to ¥516.335 million, as higher revenue substantially improved the plant operating rate. The Engineering business also benefited from higher revenue and efforts since the previous fiscal year to reduce fixed costs through organizational restructuring and other measures, resulting in segment profit of ¥30.219 million, compared with a segment loss of ¥3.876 million in the same period of the previous year.」

「Against this backdrop, market conditions in the electronic components industry, the company's main customer market, were favorable, and the company's supply-demand environment showed signs of improvement. Revenue in the core Ceramics business increased 15.7% year on year to ¥1,854.978 million. Revenue in the Engineering business also increased 26.0% year on year to ¥479.741 million. As a result, total revenue for the first quarter increased 17.6% year on year to ¥2,334.720 million. In terms of earnings, the higher revenue in the Ceramics business improved plant operating rates, resulting in a substantial increase in segment profit to ¥275.011 million from ¥33.380 million in the same period of the previous year. The Engineering business also benefited from higher revenue and from efforts since the previous fiscal year to reduce fixed costs through organizational restructuring and other measures, resulting in segment profit of ¥9.603 million, compared with a segment loss of ¥11.083 million in the same period of the previous year.」

「The Engineering business was also significantly affected by COVID-19, like the Ceramics business, and revenue decreased 8.7% year on year to ¥2,053.159 million. Operating profit increased to ¥27.209 million from a loss of ¥6.126 million in the same period of the previous year, reflecting the effect of lower fixed costs following the closure of the North Kanto Sales Office and organizational restructuring, as well as the effect of efforts over many years to improve the profit margin.」

「In terms of earnings, the Ceramics business posted a 73.8% year-on-year decline in segment profit to ¥147.211 million due to lower plant operating rates resulting from the suspension of operations and lower revenue, as well as higher depreciation expenses following the completion of the new building at the Higashiyama plant. Although revenue decreased, segment profit in the Engineering business increased to ¥0.877 million, compared with a segment loss of ¥30.125 million in the same period of the previous year, due to the effect of lower fixed costs and higher sales of some high-margin heating equipment.」

「In terms of earnings, the Ceramics business posted a 75.0% year-on-year decline in segment profit to ¥131.986 million due to lower plant operating rates resulting from the suspension of operations and lower revenue, as well as higher depreciation expenses from aggressive capital investment in recent years. The Engineering business also worked to reduce fixed costs and improve its profit margin, but was unable to absorb the impact of lower revenue and posted a segment loss of ¥3.876 million, compared with a loss of ¥19.469 million in the same period of the previous year.」

「Under these conditions, the core Ceramics business was significantly affected by the suspension of operations and restrictions on sales activities following the declaration of a state of emergency, resulting in an 18.9% year-on-year decline in revenue to ¥1,603.823 million. The Engineering business was also subject to restrictions on sales activities, resulting in a 25.2% year-on-year decline in revenue to ¥380.843 million. Total revenue for the first quarter decreased 20.2% year on year to ¥1,984.666 million. In terms of earnings, the Ceramics business was affected by lower revenue and lower plant operating rates due to the suspension of operations, resulting in an 88.6% year-on-year decline in segment profit to ¥33.380 million. The Engineering business benefited from lower fixed costs following the closure of the North Kanto Sales Office, but the impact of lower revenue resulted in a segment loss of ¥11.083 million, compared with a loss of ¥12.527 million in the same period of the previous year.」

「The Ceramics business was significantly affected in the second half of the fiscal year by the US-China trade friction and restrictions on business activities accompanying the spread of COVID-19, resulting in a 12.2% year-on-year decline in revenue to ¥7,081.369 million. The Engineering business was similarly affected by fewer orders, with revenue decreasing 14.2% year on year to ¥2,248.249 million. Operating profit was a loss of ¥6.126 million, compared with a loss of ¥12.858 million in the same period of the previous year, indicating difficult conditions.」

「Under these conditions, the core Ceramics business was particularly weak in the third quarter due to the impact of production adjustments by major customers, including those in the electronic components industry. Revenue decreased 9.1% year on year to ¥5,460.699 million. The Engineering business also focused on securing orders, but revenue decreased 20.0% year on year to ¥1,621.131 million due to sluggish capital investment by customers.」

「In terms of earnings, the Ceramics business posted a 17.2% year-on-year decline in earnings to ¥526.903 million, due to lower plant operating rates resulting from fewer orders and higher depreciation expenses from the capital investment undertaken aggressively since the previous fiscal year. The Engineering business worked to reduce expenses through organizational reform, but the impact of lower revenue was significant, resulting in a segment loss of ¥19.469 million, compared with a loss of ¥0.460 million in the same period of the previous year.」

「Under these conditions, the core Ceramics business posted a 1.8% year-on-year increase in revenue to ¥1,977.468 million, as the impact of production adjustments in the electronic components industry remained limited. The Engineering business posted a 16.9% year-on-year decline in revenue to ¥509.034 million, as activity related to equipment, including heating equipment, remained sluggish. Total revenue for the first quarter decreased 2.7% year on year to ¥2,486.502 million. In terms of earnings, although the plant operating rate in the Ceramics business remained high, it was insufficient to absorb higher expenses, including repair costs, and segment profit decreased 2.0% year on year to ¥292.959 million. The Engineering business was also affected by lower revenue and a decline in equipment-related business, which makes a significant contribution to earnings, and posted a segment loss of ¥12.527 million, compared with a loss of ¥1.293 million in the same period of the previous year.」

「The Ceramics business performed well, centered on YTZ balls for the electronic components industry, resulting in an 8.8% year-on-year increase in revenue to ¥8,061.784 million. Operating profit also increased 13.4% year on year to ¥1,174.654 million. The Engineering business also posted a 13.6% year-on-year increase in revenue to ¥2,621.049 million. However, operating profit was a loss of ¥12.858 million, compared with a loss of ¥4.478 million in the same period of the previous year, indicating difficult conditions.」

「Under these conditions, the core Ceramics business maintained steady orders and sales, supported by demand in the strong electronic components industry. Revenue increased 10.1% year on year to ¥6,005.208 million. The Engineering business also focused on winning orders from the previous fiscal year onward, resulting in a 31.8% year-on-year increase in revenue to ¥2,025.225 million.」

「Under these conditions, the core Ceramics business performed well, supported by increased demand in the vibrant electronic components industry accompanying IoT adoption and the electrification of automobiles. Revenue increased 10.1% year on year to ¥3,969.139 million. The Engineering business also focused on securing orders and sales, resulting in a 26.3% year-on-year increase in revenue to ¥1,208.507 million. In terms of earnings, the Ceramics business achieved a high plant operating rate and pursued rationalization and productivity improvements, resulting in a 29.1% year-on-year increase in segment profit to ¥636.240 million. The Engineering business also focused on improving earnings in addition to benefiting from higher revenue, but posted a loss of ¥0.460 million, compared with a loss of ¥27.385 million in the same period of the previous year.」

「Under these conditions, the core Ceramics business continued to perform steadily, with orders and sales supported by the strong electronic components industry. Revenue increased 10.2% year on year to ¥1,941.743 million. The Engineering business also showed improvement in orders from the end of the previous fiscal year, with revenue increasing 38.0% year on year to ¥612.704 million. Total revenue for the first quarter increased 15.8% year on year to ¥2,554.448 million. In terms of earnings, plant operating rates in the Ceramics business remained high, resulting in a 48.5% year-on-year increase in segment profit to ¥299.004 million. The Engineering business also showed slight improvement in earnings in addition to higher revenue, reducing its segment loss to ¥1.293 million from ¥17.388 million in the same period of the previous year.」

「Revenue in the Ceramics business increased 14.2% year on year for the 5th consecutive period, to ¥7,408.555 million. In the Engineering business, revenue from measuring instruments and other products increased year on year, but this was insufficient to offset the decline in heating equipment sales in the absence of large-scale projects. Revenue decreased 5.0% year on year to ¥2,308.052 million. The absence of high-margin heating equipment sales had a significant impact on earnings, and operating profit was a loss of ¥4.478 million, compared with profit of ¥39.933 million in the previous fiscal year.」

「Under these conditions, the Ceramics business posted steady orders and sales, supported by the strong electronic components industry, particularly for zirconia balls. Revenue increased 14.1% year on year to ¥5,455.885 million. Orders and revenue in the Engineering business showed signs of recovery in the third quarter, but performance remained weak, with revenue decreasing 7.3% year on year to ¥1,536.324 million. As a result, total revenue for the third quarter increased 8.6% year on year to ¥6,992.210 million, as the Ceramics business offset the decline in Engineering revenue. In terms of earnings, the Ceramics business posted a 71.1% year-on-year increase in earnings to ¥815.150 million, as higher plant operating rates accompanying higher revenue reduced the cost ratio. The Engineering business posted a loss of ¥15.630 million due to deterioration in the profit margin resulting from lower large-scale sales.」

「By business, the Ceramics business maintained strong performance in wear-resistant ceramics, which includes the aforementioned zirconia balls. In addition, heat-resistant ceramics, which had been relatively weak in the previous year, performed steadily, led by roller tubes, resulting in a 8.2% year-on-year increase in revenue to ¥3,605.240 million. The Engineering business had no large-scale projects in the first half and was also affected by postponements, resulting in a 16.7% year-on-year decline in revenue to ¥957.057 million. In terms of earnings, higher revenue in the Ceramics business raised plant operating rates across all divisions, resulting in a 59.0% year-on-year increase in earnings to ¥492.895 million. In the Engineering business, the decline in large-scale projects with high profit contributions caused the profit margin to deteriorate, resulting in a loss of ¥27.385 million.」

「The core Ceramics business continued to see stable orders and sales, centered on its major customers in the electronic components industry. Revenue increased 7.5% year on year to ¥1,762.832 million. Although orders in the Engineering business showed signs of improvement toward the end of the first quarter, overall performance remained weak, with revenue decreasing 14.6% year on year to ¥444.031 million. In terms of earnings, the Ceramics business posted a 63.9% year-on-year increase in earnings to ¥201.403 million, as plant operations remained strong. The Engineering business made efforts to improve its profit margin, but the impact of lower revenue was significant, resulting in a loss of ¥17.388 million.」

「The core Ceramics business maintained relatively stable sales despite challenging conditions, centered on its major customers in the electronic components industry. Revenue increased 1.8% year on year to ¥4,782.655 million. The Engineering business faced somewhat more challenging conditions than in the previous period, with revenue decreasing 3.2% year on year to ¥1,656.836 million. In terms of earnings, the Ceramics business posted an 11.8% year-on-year increase in earnings to ¥476.412 million, supported by higher revenue. The Engineering business posted a 35.3% year-on-year decline in earnings to ¥20.854 million, as it had no sales of the high-margin heating equipment seen in the previous year and large-scale sales were concentrated in the fourth quarter.」

「By business, revenue in the Ceramics business increased 3.1% year on year to ¥3,332.684 million. Strong performance in wear-resistant ceramics, which includes zirconia balls, and a slight increase in functional ceramics for the environmental sector during the period offset weak performance in heat-resistant ceramics. Revenue in the Engineering business increased 13.1% year on year to ¥1,148.588 million, partly because the first half of the previous year was weak. In terms of earnings, the Ceramics business offset lower selling prices with a higher operating rate in the manufacturing division, resulting in a 0.2% year-on-year increase in operating profit to ¥309.997 million. In the Engineering business, operating profit increased 16.6% year on year to ¥18.537 million, reflecting the effect of higher revenue and efforts to improve the profit margin.」

「However, in terms of earnings, the Ceramics business continued to struggle amid the recent economic conditions, with operating profit decreasing 19.5% year on year to ¥122.889 million. In the Engineering business, operating profit increased 141.8% year on year to ¥1.607 million, reflecting the effect of higher revenue described above.」