Cost Reduction and Cost Cutting
First written in FY2016. 11 of 27 entries say "Advanced", first in FY2017-Q1. Latest entry: 2026-05-12.
Corona moved to the "Worse" side of this theme in 2023, the same year as the typical company in this theme.
12 other companies' latest entry also says "Worsened".
- 2026-05-12WorsenedEarnings
「In terms of profit, although housing equipment performed steadily, operating profit was ¥852 million, down 36.6% year on year,」
Higher procurement prices for raw materials, together with increases in personnel expenses and selling, general and administrative expenses including costs related to operational rationalization, put pressure on profit. - FY2025-H1RestatedAnnual report
「Under the initiative of "escaping a high-cost structure through operational rationalization," the company worked to improve productivity and operational efficiency.」
The company continues to pursue the Ninth Medium-Term Management Plan's goal of escaping a high-cost structure through improved productivity and operational efficiency. - FY2024-Q3WorsenedAnnual report
「In terms of earnings, operating income was ¥2,472 million, down 16.6% year on year, ordinary income was ¥2,822 million, down 13.9%, and quarterly net income attributable to owners of the parent was ¥2,045 million, down 11.8%, due to higher raw material and energy prices and lower sales of residential, air-conditioning, and home appliance equipment.」
Higher raw material and energy prices and lower sales caused operating income, ordinary income, and quarterly net income attributable to owners of the parent to fall below the same quarter of the previous year. - FY2024-Q2WorsenedAnnual report
「In terms of earnings, operating loss was ¥181 million (operating income of ¥390 million in the same quarter of the previous year), ordinary income was ¥23 million, down 96.0% year on year, and quarterly net income attributable to owners of the parent was ¥16 million, down 96.0%, due to soaring raw material and energy prices and lower sales of residential, air-conditioning, and home appliance equipment.」
Soaring raw material and energy prices and lower sales caused operating income to deteriorate from ¥390 million in the previous year to an operating loss of ¥181 million. - FY2024-Q1WorsenedAnnual report
「In terms of earnings, operating loss was ¥359 million (operating loss of ¥129 million in the same quarter of the previous year), ordinary loss was ¥257 million (ordinary loss of ¥27 million in the same quarter of the previous year), and quarterly net loss attributable to owners of the parent was ¥212 million (quarterly net loss attributable to owners of the parent of ¥50 million in the same quarter of the previous year), due to soaring raw material and energy prices and lower sales of air-conditioning, home appliance, and residential equipment.」
Cost pressures and lower sales caused the operating loss, ordinary loss, and quarterly net loss attributable to owners of the parent to widen from the same quarter of the previous year. - FY2023WorsenedAnnual report
「The cost of sales ratio rose by 0.1 percentage points from the previous fiscal year to 78.0% due to soaring raw material prices and other factors.」
Although the company continues production cost and expense reductions, the cost of sales ratio rose from 77.9% in the previous fiscal year to 78.0% due to the impact of soaring raw material prices. - FY2023-Q2AdvancedAnnual report
「In terms of earnings, operating income was ¥390 million, up 280.0% year on year, ordinary income was ¥601 million, up 120.7%, and quarterly net income attributable to owners of the parent was ¥410 million, up 110.9%, helped by strong sales of residential equipment, the pass-through of soaring raw material prices into product prices, and expense reduction efforts.」
The company passed soaring raw material prices through to product prices and pursued expense reductions, resulting in operating income, ordinary income, and quarterly net income attributable to owners of the parent exceeding the levels in the same quarter of the previous year. - FY2022AdvancedAnnual report
「3. Escaping a high-cost structure through operational rationalization Reducing fixed costs by improving the efficiency and productivity of administrative and support functions, and accelerating development」
Under the Ninth Medium-Term Management Plan, the measures became more specific, shifting from conventional production cost and expense reductions toward escaping a high-cost structure through greater efficiency and productivity in administrative and support functions, fixed-cost reductions, and faster development. - FY2022-Q3RestatedAnnual report
「In terms of earnings, although the company pursued company-wide expense cuts, operating income was ¥1,952 million, down 3.6% year on year, and ordinary income was ¥2,231 million, down 3.3%, due to soaring raw material prices and lower sales of heating, air-conditioning, and home appliance equipment.」
Although the company continued company-wide expense cuts, operating income and ordinary income fell below the same quarter of the previous year due to soaring raw material prices and lower sales of heating, air-conditioning, and home appliance equipment. - FY2022-Q2AdvancedAnnual report
「In terms of earnings, despite the impact of soaring raw material prices and global shortages of electronic components, operating income was ¥102 million, up 204.1% year on year, and ordinary income was ¥272 million, up 38.4%, helped by strong sales of residential equipment and the effects of expense reduction efforts.」
Despite the impact of soaring raw material prices and other factors, strong sales of residential equipment and the effects of expense reductions drove operating income and ordinary income above the same quarter of the previous year. - FY2021WorsenedAnnual report
「Although the company pursued production cost reductions and company-wide expense cuts, the cost of sales ratio rose by 0.1 percentage points from the previous fiscal year to 76.6% due to the lower operating rate associated with inventory adjustments and increased depreciation associated with capital investments.」
Although the company continued production cost and expense reductions, the cost of sales ratio rose from 76.5% to 76.6% due to the lower operating rate and increased depreciation expenses. - FY2020Increase in cost of sales ratioAnnual report
「Although the company pursued production cost reductions and company-wide expense cuts, the cost of sales ratio rose by 0.3 percentage points from the previous fiscal year to 76.5% due to higher component prices for heating equipment and increased depreciation associated with capital investments.」
Although the company continued production cost reduction activities and company-wide expense cuts, the cost of sales ratio rose 0.3 percentage points year on year due to higher component prices and other factors. - FY2020-Q3RestatedAnnual report
「In terms of earnings, although the company pursued production cost reductions and company-wide expense cuts, operating income was ¥2,278 million, down 27.4% year on year, ordinary income was ¥2,516 million, down 25.8%, and quarterly net income attributable to owners of the parent was ¥1,793 million, down 24.9%, due in part to lower sales of heating equipment and room air conditioners.」
Although the company continued production cost reduction activities and company-wide expense cuts, earnings declined year on year due to the impact of lower sales. - FY2020-Q2RestatedAnnual report
「As a result, net sales for the cumulative second quarter of the current consolidated fiscal year were ¥40,167 million, up 2.0% year on year. In terms of earnings, although the company pursued production cost reductions and company-wide expense cuts, operating income was ¥294 million, down 27.8% year on year, ordinary income was ¥436 million, down 22.0%, and quarterly net income attributable to owners of the parent was ¥302 million, down 21.3%, due in part to lower sales of room air conditioners.」
Although the company continued production cost reduction activities and company-wide expense cuts, operating income, ordinary income, and quarterly net income all declined year on year due in part to lower sales of room air conditioners. - FY2020-Q1RestatedAnnual report
「As a result, net sales for the cumulative first quarter of the current consolidated fiscal year were ¥16,529 million, down 6.5% year on year. In terms of earnings, although the company pursued production cost reductions and company-wide expense cuts, the decline in sales resulted in an operating loss of ¥624 million (operating loss of ¥430 million in the same quarter of the previous year), an ordinary loss of ¥530 million (ordinary loss of ¥341 million in the same quarter of the previous year), and a quarterly net loss attributable to owners of the parent of ¥407 million (quarterly net loss attributable to owners of the parent of ¥270 million in the same quarter of the previous year).」
Although the company continued production cost reduction activities and company-wide expense cuts, the operating loss, ordinary loss, and quarterly net loss attributable to owners of the parent all widened from the same quarter of the previous year due to the decline in sales. - FY2019RestatedAnnual report
「Although the company pursued thorough cost reduction, including production cost reduction activities, the cost of sales ratio rose by 1.5 percentage points from the previous fiscal year to 76.2% due to higher raw material prices and increased depreciation associated with dies and capital investments.」
Although the company continued production cost reduction activities, the cost of sales ratio rose to 76.2% due to higher raw material prices and other factors. - FY2019-Q3RestatedAnnual report
「In terms of earnings, although the company pursued production cost reductions and company-wide expense cuts, operating income was ¥3,137 million, down 22.4% year on year, ordinary income was ¥3,390 million, down 20.6%, and quarterly net income attributable to owners of the parent was ¥2,388 million, down 22.6%, due to higher raw material prices, logistics costs, and depreciation associated with dies and capital investments.」
Although the company continued production cost reduction activities and company-wide expense cuts, higher raw material prices, logistics costs, and depreciation expenses weighed on earnings. - FY2019-Q2RestatedAnnual report
「In terms of earnings, although the company pursued production cost reductions and company-wide expense cuts, operating income was ¥407 million, down 42.4% year on year, ordinary income was ¥560 million, down 32.3%, and quarterly net income attributable to owners of the parent was ¥384 million, down 40.4%, due to higher raw material prices, logistics costs, and depreciation associated with dies and capital investments.」
Although the company continued production cost reduction activities and company-wide expense cuts, earnings fell below the same quarter of the previous year due to the impact of higher external costs and other factors, rather than any concrete progress in earnings improvement. - FY2018AdvancedAnnual report
「Although the company was affected by higher raw material prices, the cost of sales ratio improved by 0.4 percentage points from the previous fiscal year to 74.7% as a result of introducing rationalized production equipment, improving productivity through work improvements, and pursuing thorough cost reduction, including production cost reduction activities.」
Despite the impact of higher raw material prices, the cost of sales ratio improved by 0.4 percentage points to 74.7% through rationalized production equipment, work improvements, and production cost reductions. - FY2018-Q3AdvancedAnnual report
「As a result, net sales for the cumulative third quarter of the current consolidated fiscal year were ¥68,110 million, up 3.4% year on year. In terms of earnings, the factory operating rate improved as a result of proactive production measures, while productivity improved through equipment rationalization and work improvements. As the company also pursued production cost reductions and company-wide expense cuts, ordinary income was ¥4,272 million, up 22.1% year on year, and quarterly net income attributable to owners of the parent was ¥3,086 million, up 22.1% year on year.」
Higher factory operating rates and productivity, production cost reductions, and expense cuts resulted in ordinary income of ¥4,272 million, up 22.1% year on year. - FY2018-Q2AdvancedAnnual report
「As a result, net sales for the cumulative second quarter of the current consolidated fiscal year were ¥38,034 million, up 3.8% year on year. In terms of earnings, the factory operating rate improved as a result of proactive production measures, while productivity improved through equipment rationalization and work improvements. As the company also pursued production cost reductions and company-wide expense cuts, ordinary income was ¥827 million, up 151.7% year on year, and quarterly net income attributable to owners of the parent was ¥645 million, up 207.6% year on year.」
Higher factory operating rates, improved productivity, production cost reductions, and expense cuts resulted in ordinary income of ¥827 million, up 151.7% year on year, and quarterly net income attributable to owners of the parent of ¥645 million, up 207.6%. - FY2018-Q1AdvancedAnnual report
「As a result, net sales for the cumulative first quarter of the current consolidated fiscal year were ¥17,295 million, up 3.1% year on year. In terms of earnings, the ordinary loss was ¥145 million (ordinary loss of ¥561 million in the same quarter of the previous year), and the quarterly net loss attributable to owners of the parent was ¥115 million (quarterly net loss attributable to owners of the parent of ¥431 million in the same quarter of the previous year), as the company pursued production cost reductions and company-wide expense cuts.」
As a result of production cost reductions and company-wide expense cuts, the ordinary loss narrowed from ¥561 million to ¥145 million, and the quarterly net loss attributable to owners of the parent narrowed from ¥431 million to ¥115 million. - FY2017AdvancedAnnual report
「Cost of sales improved by 0.2 percentage points from the previous fiscal year to 75.1% as a result of the higher factory operating rate from proactive production measures and thorough cost reduction, including production cost reduction activities.」
Production cost reductions, expense cuts, and the higher factory operating rate improved the cost of sales ratio by 0.2 percentage points, while ordinary income increased 163.1% year on year. - FY2017-Q3AdvancedAnnual report
「As a result, net sales for the cumulative third quarter of the current consolidated fiscal year were ¥65,843 million, up 7.9% year on year. In terms of earnings, the factory operating rate improved as a result of proactive production measures, and the company pursued production cost reductions and company-wide expense cuts. Accordingly, ordinary income was ¥3,498 million, up 76.7% year on year, and quarterly net income attributable to owners of the parent was ¥2,526 million, up 83.4% year on year.」
In addition to production cost reductions and company-wide expense cuts, the higher factory operating rate led to substantial year-on-year increases in ordinary income and quarterly net income attributable to owners of the parent. - FY2017-Q2AdvancedAnnual report
「As a result, net sales for the cumulative second quarter of the current consolidated fiscal year were ¥36,649 million, up 6.9% year on year. In terms of earnings, the factory operating rate improved as a result of proactive production measures, and the company pursued production cost reductions and company-wide expense cuts. Accordingly, ordinary income was ¥328 million (ordinary loss of ¥689 million in the same quarter of the previous year), and quarterly net income attributable to owners of the parent was ¥209 million (quarterly net loss attributable to owners of the parent of ¥529 million in the same quarter of the previous year).」
In addition to production cost reductions and company-wide expense cuts, the higher factory operating rate turned ordinary income and quarterly net income from losses in the same period of the previous year into profits. - FY2017-Q1AdvancedAnnual report
「In terms of earnings, profit improvement progressed beyond the initial forecast as the company benefited from lower prices for raw materials and procured parts due to the stronger yen and market price fluctuations, as well as higher productivity from equipment rationalization, and pursued thorough cost reduction through cost reduction activities and expense cuts. The ordinary loss was ¥561 million (ordinary loss of ¥1,345 million in the same quarter of the previous year), and the quarterly net loss attributable to owners of the parent was ¥431 million (quarterly net loss attributable to owners of the parent of ¥943 million in the same quarter of the previous year).」
The company stated that profit improvement progressed beyond the initial forecast as a result of cost reduction, including reductions in production costs and expenses. - FY2016First statedAnnual report
「"Strengthening cost competitiveness by establishing a system for embedding cost discipline from the outset"」
The policy is to establish a system for embedding cost discipline from the design and production stages and thereby enhance cost competitiveness.