Sharp Demand Decline, Production Cuts and Business Impact Due to COVID-19
First written in FY2020. 5 of 11 entries say "Reframed", first in FY2021-Q3. Latest entry: FY2025.
Nichia Steel Works moved to the "Worse" side of this theme in 2021, 1 year after the typical company in this theme (2020).
The whole theme swung hardest in 2020: 112 of 175 companies on the "Worse" side.
55 other companies' latest entry also says "Dropped".
- FY2025DroppedAnnual reportThe discussion of the operating environment and major business and other risks for the current fiscal year contains no direct reference to a sharp decline in demand or production cuts caused by COVID-19.
- FY2023-Q1MaterialisedAnnual report
「For special wire rod products, the recovery in production by automakers, the main customers for these products, has been delayed due to disruptions in the supply chain and other factors, and sales were forced to decline from the same period of the previous year.」
Supply chain disruptions stemming from COVID-19 and other factors appeared in the current quarter's results as weaker demand for automotive applications and lower sales volumes of special wire rod products. - FY2022ReframedAnnual report
「The impact of COVID-19 was identified as one factor contributing to weak demand for ordinary wire rod products used in fences and wildlife damage prevention fences, as well as lower demand for special wire rod products due to reduced automobile production. Depending on future trends in these demand industries, this could affect our group's operating results.」
Rather than describing the sharp decline in demand caused by COVID-19 itself, the disclosure categorized it as one factor behind weak demand for fences, wildlife damage prevention fences and automotive applications, and described it as a risk that future trends in demand industries could affect operating results. - FY2022-Q3RestatedAnnual report
「Japan's economy was recovering from the severe recession caused by the global spread of COVID-19 in the same quarter of the previous year, but the recovery remained slow due in part to weak personal consumption.」
Although the business has recovered from the severe recession caused by the pandemic in the same period of the previous year, the explanation that the recovery remains sluggish due to weak personal consumption and other factors has continued. - FY2022-Q2ReframedAnnual report
「During the cumulative second quarter of the fiscal year, Japan's economy was recovering from the severe recession caused by the global spread of COVID-19 in the same quarter of the previous year, but the recovery remained slow due in part to weak personal consumption.」
A recovery from the severe recession caused by the pandemic that became evident in the same period of the previous year was indicated, and the risk description shifted from the sharp decline in demand itself to the ongoing recovery, including its sluggish pace. - FY2022-Q1ReframedAnnual report
「During the cumulative first quarter of the fiscal year, Japan's economy was recovering from the severe recession caused by the global spread of COVID-19 in the same quarter of the previous year, but remained midway through its recovery and had not reached pre-pandemic levels.」
Although the business is recovering from the severe recession caused by COVID-19 that became evident in the same period of the previous year, it has not yet returned to pre-pandemic levels, and the explanation of the impact has shifted to describe a recovery still in progress. - FY2021ReframedAnnual report
「Japan's economy, which was hit by a severe recession amid the global spread of COVID-19 and fell into substantial negative growth for FY2020, is expected to require a considerable period of time to achieve a full recovery. Against this backdrop, although activity levels in areas such as automotive are recovering, the outlook remains uncertain, including concerns that weakness in small and medium-sized construction projects will continue. Depending on trends in the industries that drive demand, this could affect our group's operating results.」
In addition to the recognition of a sharp decline in demand in the first half and recovery in automotive activity and construction demand in the second half, the prolonged path to a full recovery and continued weakness in small and medium-sized construction projects were identified as new uncertainties. - FY2021-Q3ReframedAnnual report
「During the first half, we were forced to contend with a sharp and substantial decline in demand, particularly in the automotive and construction sectors. In the second half, activity levels in the automotive sector recovered substantially, while construction demand showed some recovery as inventory adjustments progressed.」
While the sharp decline in demand caused by COVID-19 continued in the first half, the second half showed a substantial recovery in automotive activity levels and a recovery in construction demand, and the explanation of the impact shifted to include the recovery phase. - FY2021-Q2RestatedAnnual report
「Nevertheless, the impact of lower sales volumes was significant, and the financial position and operating results were as follows.」
The recognition that the impact of lower sales volumes caused by COVID-19 remained significant during the current quarter continued. - FY2021-Q1MaterialisedAnnual report
「Against this backdrop, our group worked hard to secure earnings. We took measures to recover sales volumes by focusing sales activities on public civil engineering, power and telecommunications, and wildlife damage prevention fences, which were less affected by COVID-19, while also promoting measures to improve the average selling price, including through a more favorable product mix, and to reduce various costs, including auxiliary materials, energy and other expenses. Nevertheless, the impact of lower production and sales volumes was significant, and the financial position and operating results were as follows.」
The decline in demand caused by COVID-19 and the decrease in production and sales volumes also occurred during the current quarter and were described as having a significant impact. The disclosures also cited a greater sales focus on less-affected sectors and cost reduction measures. - FY2020First statedAnnual report
「Since April 2020, our group has experienced a decline in sales volumes due to a sharp and substantial drop in demand and has been forced to make production cuts of a certain scale. By sector, the impact has been particularly significant in the automotive and construction sectors. In the automotive industry, reduced production by automakers has lowered the level of production activity at automotive parts manufacturers and led to inventory adjustments, while in the construction industry, cancellations and postponements of construction projects and inventory adjustments by wholesalers have each resulted in reduced demand.」
The sharp decline in demand for automotive and construction applications, the decrease in sales volumes and production cuts of a certain scale caused by COVID-19 were disclosed separately for the first time as risks that had actually materialized since April 2020. The impact could not be reasonably quantified.