Higher costs due to production equipment commissioning problems
First written in FY2019-Q2. 3 of 6 entries say "Worsened", first in FY2020-Q2. Latest entry: FY2026.
Mitsubishi Steel Mfg. moved to the "Worse" side of this theme in 2026, 5 years after the typical company in this theme (2021).
The whole theme swung hardest in 2021: 5 of 11 companies on the "Worse" side.
2 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.」
Equipment problems at the North American subsidiary caused cost deterioration and an operating loss, indicating that production equipment-related risks that had previously eased have resurfaced. - FY2021MitigatedAnnual report
「Operating profit improved significantly in the second half, owing to the resolution of production problems during the launch of a new product at the North American subsidiary in the previous fiscal year, lower depreciation expenses following impairment recognition, ongoing cost reductions and a recovery in demand from the second quarter onward.」
The production problems during the launch of a new product at the North American subsidiary were resolved and, together with ongoing cost reductions and other measures, contributed to improved earnings in the second half. - FY2021-Q1MitigatedAnnual report
「Operating profit was heavily affected by lower sales. Despite improvements from resolving production problems during the launch of a new product at the North American subsidiary, lower depreciation expenses following impairment recognition in the previous fiscal year, and expense reductions, the loss widened by ¥729 million year on year to ¥1,059 million, compared with an operating loss of ¥330 million in the same period of the previous year.」
The production problems during the launch of a new product at the North American subsidiary were reported to have been resolved. However, the spring business’s loss widened due to the impact of lower sales. - FY2020-Q3WorsenedAnnual report
「Although the Company benefited from lower depreciation expenses following the recognition of impairment losses on fixed assets and reductions in fixed and general administrative costs, lower sales in Japan and overseas, together with higher costs caused by production problems during the launch of a new product in North America, resulted in a year-on-year deterioration of ¥410 million and an operating loss of ¥1,125 million, compared with an operating loss of ¥714 million in the same period of the previous year.」
Production problems during the launch of a new product in North America continued to drive higher costs. Despite cost reductions and lower depreciation expenses following impairment recognition, the spring business’s operating loss widened from ¥714 million in the same period of the previous year to ¥1,125 million. - FY2020-Q2WorsenedAnnual report
「Operating profit was affected at the North American subsidiary by higher costs caused by production problems with new products in addition to lower sales, and at the European subsidiary by the impact of sluggish automotive demand. As a result, operating profit decreased by ¥548 million year on year, resulting in an operating loss of ¥996 million, compared with an operating loss of ¥447 million in the same period of the previous year.」
Higher costs caused by production equipment and new-product commissioning problems continued at the North American subsidiary, while sluggish demand at the European subsidiary also contributed, causing the spring business’s operating loss to widen year on year. - FY2019-Q2First statedAnnual report
「Operating profit was affected by market fluctuations in material prices at the North American subsidiary, higher material costs following tariff increases, and increased expenses caused by problems during the commissioning of production equipment introduced to improve costs, among other factors. As a result, operating profit decreased by ¥947 million year on year, resulting in an operating loss of ¥470 million.」
Problems during the commissioning of production equipment introduced to improve costs actually occurred and were disclosed as a factor behind higher costs and the operating loss in the spring business.