Deteriorating Profitability and Impairment Losses Due to Changes in Market Conditions
First written in FY2016. 7 of 12 entries say "Materialised", first in FY2016. Latest entry: FY2026.
Swcc moved to the "Worse" side of this theme in 2016, 7 years before the typical company in this theme (2023).
The whole theme swung hardest in 2026: 6 of 10 companies on the "Worse" side.
2 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「During the current consolidated fiscal year, our group recorded impairment losses on the following assets.」
An impairment loss totaling ¥526 million was recorded on winding manufacturing equipment, seismic-isolation device manufacturing equipment, electrical equipment and materials manufacturing equipment, electron-beam manufacturing equipment, and manufacturing equipment for wiring materials for electronic devices in China. Each business had indicated plans to end manufacturing and sales or close its plant. - 2026-05-14MaterialisedRevision of earnings forecasts
「Impairment loss — 526」
No impairment loss was recorded in the previous fiscal year, whereas an impairment loss of ¥526 million was recorded in the current fiscal year. - FY2024RestatedAnnual report
「The optical fiber cable business in the Communications and Industrial Devices segment has continued to generate negative operating results, and the company determined that there were indications of impairment. In assessing whether to recognize an impairment loss, the company estimated the undiscounted future cash flows generated by the asset group. As the total exceeded its carrying amount, no impairment loss was recognized.」
Although the optical fiber cable business has continued to report negative operating results and indications of impairment, no impairment loss was recorded this fiscal year because undiscounted future cash flows exceeded the carrying amount. - FY2023MaterialisedAnnual report
「The power equipment and other manufacturing equipment has been valued at a net realizable value of zero because the site on which it is installed is scheduled to be leased out and the equipment is scheduled to be dismantled and removed. Accordingly, the carrying amount of the assets has been reduced. The reduction of ¥244 million has been recorded as an extraordinary loss.」
An impairment loss of ¥244 million was recorded on the power equipment and other manufacturing equipment because the site was scheduled to be leased out and the equipment was scheduled to be dismantled and removed. - FY2023-Q3RestatedAnnual report
「There were no material changes from the end of the previous consolidated fiscal year.」
The Group reconfirmed that there had been no material changes from the end of the previous fiscal year in its accounting estimates, including impairment accounting for fixed assets, taking into account the impact of COVID-19. - FY2022-Q3RestatedAnnual report
「There were no material changes from the end of the previous consolidated fiscal year.」
The Group reconfirmed that there had been no material changes from the end of the previous fiscal year in its accounting estimates, including impairment accounting for fixed assets, taking into account the impact of COVID-19. - FY2021-Q3RestatedAnnual report
「As of the end of the third-quarter consolidated accounting period, the Group had made no material changes to this assumption.」
The Group maintained the accounting assumption that, taking into account the impact of COVID-19, the business environment would gradually recover in the second half of the fiscal year after bottoming out in the first quarter. - FY2021-Q2RestatedAnnual report
「In the previous consolidated fiscal year, because the Group expected its principal businesses to be affected by factors including the partial postponement of demand for electric wires and cables for construction-related applications due to temporary construction delays caused by the spread of COVID-19, the Group evaluated accounting estimates, including impairment accounting for fixed assets and the recoverability of deferred tax assets, on the assumption that the Group's business environment in fiscal 2020 would gradually recover in the second half of the fiscal year after bottoming out in the first quarter. As of the end of the second-quarter consolidated accounting period, the Group had made no material changes to this assumption.」
The Group maintained its assumption that the business environment under COVID-19 would gradually recover in the second half of the fiscal year after bottoming out in the first quarter, and evaluated impairment accounting for fixed assets and the recoverability of deferred tax assets. - FY2020MaterialisedAnnual report
「In the consolidated fiscal year under review, the Group recorded impairment losses on the following assets: automotive wire manufacturing equipment, ¥119 million; and wire harness manufacturing equipment, ¥19 million.」
In addition to the automotive wire equipment's failure to meet the plan, an impairment loss arose on the wire harness equipment in connection with the planned dissolution of ダイジ, resulting in a total of ¥138 million being recorded. - FY2019MaterialisedAnnual report
「The recent performance of the automotive wire manufacturing equipment has fallen below the original business plan, and the current outlook indicates that the carrying amount of the assets related to this manufacturing equipment is unlikely to be recovered. Accordingly, the carrying amount has been written down to its recoverable amount. The reduction of ¥87 million has been recorded as an extraordinary loss.」
An impairment loss of ¥87 million newly arose for the automotive wire manufacturing equipment due to the failure to meet the plan amid changes in the market environment and performance. - FY2017MaterialisedAnnual report
「As the profitability of the seismic-isolation device manufacturing equipment has deteriorated due to changes in the market environment, its carrying amount has been written down to its recoverable amount. The reduction of ¥322 million has been recorded as an extraordinary loss.」
Following the large impairment loss in the previous fiscal year, an impairment loss of ¥322 million was also recorded this fiscal year for the seismic-isolation device manufacturing equipment and other assets. - FY2016MaterialisedAnnual report
「As the profitability of the seismic-isolation device manufacturing equipment, overhead transmission line manufacturing equipment, communications cable manufacturing equipment, power cable manufacturing equipment, wire harness manufacturing equipment, rubber-insulated wire manufacturing equipment and winding manufacturing equipment has deteriorated due to changes in the market environment, the carrying amounts of these assets have been written down to their recoverable amounts. The aggregate reduction of ¥5,995 million has been recorded as an extraordinary loss.」
Deteriorating profitability of equipment across multiple businesses actually occurred, resulting in impairment losses totaling ¥5,995 million.