Deterioration in the financial condition of overseas subsidiaries and investment valuation and impairment risks
First written in FY2016. 10 of 19 entries say "Worsened", first in FY2018. Latest entry: FY2026.
Mitsubishi Steel Mfg. moved to the "Worse" side of this theme in 2018, 4 years before the typical company in this theme (2022).
The whole theme swung hardest in 2017: 5 of 11 companies on the "Worse" side.
3 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Although sales at MSSC CANADA were strong, costs deteriorated due to equipment problems, tariffs and other external factors. The company recorded an operating loss during the consolidated fiscal year and identified indications of impairment.」
Although sales at the North American subsidiary were strong, deteriorating costs caused by equipment problems and tariffs resulted in an operating loss and indications of impairment, causing the financial deterioration and investment valuation risks to re-emerge in concrete form. - FY2026-H1MitigatedAnnual report
「In addition, although operating profit declined, interim net profit attributable to owners of the parent increased by ¥641 million year on year to ¥674 million, due to lower non-operating expenses and the elimination of the extraordinary loss associated with the withdrawal from the German springs business in the previous period. Interim net profit attributable to owners of the parent was ¥32 million in the same period of the previous year.」
The extraordinary loss associated with the withdrawal from the German springs business in the previous period was eliminated in the current interim period, increasing interim net profit attributable to owners of the parent year on year. This does not state that the overall financial and investment valuation risks associated with overseas subsidiaries have been eliminated. - FY2025-H1MaterialisedAnnual report
「A reasonable estimate was calculated and recognised as a provision for losses associated with the liquidation and other actions involving MSSC Ahle GmbH, a consolidated subsidiary. These were losses associated with the liquidation and other actions involving MSSC Ahle GmbH, a consolidated subsidiary, including an asset valuation loss of ¥720 million.」
In connection with the liquidation and other actions involving the German subsidiary MSSC Ahle GmbH, ¥351 million was recognised as an expense for a provision for business restructuring losses and ¥720 million as an asset valuation loss, indicating that the financial and investment valuation risks of overseas subsidiaries had actually materialised. - FY2024-Q3WorsenedAnnual report
「Although the North American subsidiaries' results improved substantially due to progress in passing higher costs through to selling prices and the resolution of production disruptions, they recorded an operating loss in the third quarter, partly due to strikes by automakers and the fact that some selling price negotiations remained unresolved.」
Although the North American subsidiaries improved due to progress in passing higher costs through to selling prices and the resolution of production disruptions, they recorded an operating loss in the third quarter because of strikes by automakers and unresolved selling price negotiations, causing factors behind the deterioration in profitability to re-emerge. - FY2024-Q2MitigatedAnnual report
「The North American subsidiaries' results improved substantially due to progress in passing higher costs through to selling prices and the resolution of production disruptions, resulting in a return to operating profitability.」
The North American subsidiaries' results improved to operating profitability, further easing the risk of deteriorating profitability and financial condition at overseas subsidiaries from the continued losses in the previous quarter. However, the disclosure does not state that the financial deterioration, including at other overseas subsidiaries, has been resolved. - FY2024-Q1MitigatedAnnual report
「Operating profit was an operating loss of ¥295 million, with the loss narrowing by ¥810 million year on year, compared with an operating loss of ¥1,105 million in the same period of the previous year. Although the North American subsidiaries' results improved substantially due to the resolution of production disruptions and progress in passing higher costs through to selling prices, they still recorded a loss because the recovery did not reach the expected level, partly because material markets had recently risen again.」
At the North American subsidiaries, results improved substantially due to the resolution of production disruptions and progress in passing higher costs through to selling prices, narrowing the loss in the springs business by ¥810 million year on year. However, a loss remained. - FY2023WorsenedAnnual report
「The companies had negative net assets of ¥7,719 million for MSSC CANADA INC., ¥7,484 million for MSSC US INC., ¥153 million for MSM SPRING INDIA PVT. LTD., ¥190 million for MSSC MFG MEXICANA,S.A.DE C.V. and ¥1,258 million for MSSC Ahle GmbH.」
Negative net assets at overseas subsidiaries expanded to ¥7,719 million in Canada and ¥7,484 million in the US, among others, with Mexico and Germany also included among the companies disclosed. - FY2023-Q3WorsenedAnnual report
「Operating profit in the springs business as a whole declined by ¥1,787 million year on year to an operating loss of ¥2,817 million, compared with an operating loss of ¥1,029 million in the same period of the previous year. This was due to additional costs, including lower productivity and emergency transportation, resulting from production disruptions that had continued since the second half of the previous fiscal year, as well as the increase in losses at the North American subsidiaries caused by the weaker yen.」
Production disruptions at the North American subsidiaries and losses caused by the weaker yen continued, with the operating loss in the springs business expanding by ¥1,787 million year on year to ¥2,817 million. - FY2023-Q2WorsenedAnnual report
「Operating loss in the Spring segment widened by ¥1,139 million year on year to ¥2,032 million, compared with an operating loss of ¥893 million in the same period of the previous year. This reflected continued lower productivity and emergency transportation measures at the North American subsidiary due to production disruptions that had continued since the second half of the previous fiscal year, as well as the further widening of the subsidiary's loss due to the weaker yen.」
Production disruptions at the North American subsidiaries and losses caused by the weaker yen resulted in an operating loss of ¥2,032 million for the springs business as a whole, indicating further deterioration in the profitability and financial condition of overseas subsidiaries. - FY2023-Q1WorsenedAnnual report
「Operating profit in the springs business as a whole declined by ¥886 million year on year to an operating loss of ¥1,105 million, compared with an operating loss of ¥219 million in the same period of the previous year. This was because, at the North American subsidiaries, the impact of production disruptions caused by abrupt changes in orders from automakers and other factors since the second half of the previous fiscal year expanded further while lower productivity and additional costs for emergency transportation continued, and losses at the North American subsidiaries increased due to the weaker yen.」
At the North American subsidiaries, production disruptions and losses caused by the weaker yen resulted in an operating loss of ¥1,105 million for the springs business as a whole, indicating further deterioration in the financial condition and profitability of overseas subsidiaries. - FY2021WorsenedAnnual report
「The companies had negative net assets of ¥4,201 million for MSSC CANADA INC., ¥4,444 million for MSSC US INC. and ¥261 million for MSM SPRING INDIA PVT. LTD.」
Negative net assets at overseas subsidiaries were disclosed at ¥4,201 million for Canada, ¥4,444 million for the US and ¥261 million for India, indicating an expansion from previously disclosed levels in both the companies affected and the amounts involved. - FY2020MaterialisedAnnual report
「During the consolidated fiscal year, an impairment loss was recognised on fixed assets at overseas subsidiaries in connection with revisions to the business plan.」
The financial deterioration and investment valuation risks of overseas subsidiaries became substantially evident through impairment losses of ¥15,049 million, mainly on assets related to overseas subsidiaries, and a net loss attributable to owners of the parent of ¥14,070 million. - FY2020-Q2WorsenedAnnual report
「The quarterly net loss attributable to owners of the parent was ¥14,310 million, due to the recognition of ¥14,851 million in extraordinary losses as impairment losses at overseas subsidiaries. The corresponding figure for the same period of the previous year was quarterly net profit attributable to owners of the parent of ¥296 million.」
The risk associated with the profitability and asset valuations of overseas subsidiaries became substantially evident through impairment losses of ¥14,851 million across the overseas subsidiaries and a quarterly net loss attributable to owners of the parent of ¥14,310 million. - FY2020-Q1WorsenedAnnual report
「Because sales at PT. JATIM TAMAN STEEL MFG., a consolidated subsidiary of the Company, fell below a certain level in the previous consolidated fiscal year, ¥2,500 million of short-term borrowings are in breach of financial covenants. The Company has obtained the consent of its financial institutions not to exercise provisions concerning the loss of the benefit of time.」
Sales at JATIM fell below a certain level, causing ¥2.5 billion of short-term borrowings to breach financial covenants. Although the Company has obtained the consent of its financial institutions not to exercise provisions concerning the loss of the benefit of time, the deterioration in the financial condition of an overseas subsidiary has taken on a new, concrete form. - FY2019-Q2MaterialisedAnnual report
「In the special-steel materials business, profit fell by ¥887 million, or 52.3%, year on year to ¥808 million, due to higher costs resulting from increases in raw fuel and auxiliary-material prices, among other factors, and losses at JATIM.」
JATIM, which had been made a subsidiary, recorded a loss while expanding sales, becoming a factor behind the decline in profit in the specialty steel materials business. The deterioration in the financial condition and profitability of overseas subsidiaries continues to appear in results. - FY2019-Q1MaterialisedAnnual report
「Although operating profit was approximately in line with the same period of the previous year because domestic operations were able to offset the impact of higher costs, including raw material prices, through selling price adjustments, operating profit declined by ¥329 million, or 44.6%, year on year to ¥408 million. This was due to an operating loss at JATIM, which had been made a subsidiary and was still in the process of expanding sales.」
Regarding the financial deterioration and investment valuation risks of overseas subsidiaries, JATIM recorded an operating loss while still expanding sales after becoming a subsidiary, becoming a factor behind the decline in profit in the specialty steel materials business. - FY2018WorsenedAnnual report
「The companies had negative net assets of ¥1,432 million for MSSC CANADA INC. and ¥193 million for MSSC US INC.」
Regarding the deteriorating financial condition of overseas subsidiaries, negative net assets of ¥1,432 million at the Canadian subsidiary and ¥193 million at the US subsidiary were disclosed, expanding both the companies covered and the amounts from the previous ¥156 million for the US subsidiary. - FY2017RestatedAnnual report
「MSSC US INC. had negative net assets of ¥156 million.」
The negative net assets of MSSC US INC. continue to be disclosed as a risk associated with the deteriorating financial condition of overseas subsidiaries. - FY2016First statedAnnual report
「An extraordinary loss was recognised following a review of investments in overseas subsidiaries and the impairment of fixed assets.」
During the period, investment valuation reviews and impairment charges relating to overseas subsidiaries actually occurred. MSSC US INC. had negative net assets of ¥576 million and MSSC CANADA INC. had negative net assets of ¥258 million. An impairment loss of ¥423 million was recognised on manufacturing equipment for construction machinery at a Chinese subsidiary, and a ¥365 million loss was recognised on goodwill at a Canadian subsidiary.