Increase in Fixed Costs and Impact on Earnings from Introducing Large-Scale Insulation Testing Equipment and Automated Production Lines
First written in FY2018-Q3. 3 of 10 entries say "Worsened", first in FY2019-Q1. Latest entry: FY2024-Q3.
Almetax Manufacturing Co moved to the "Worse" side of this theme in 2018, 1 year before the typical company in this theme (2019).
The whole theme swung hardest in 2023: 8 of 15 companies on the "Worse" side.
4 other companies' latest entry also says "Restated".
- FY2024-Q3RestatedAnnual report
「During the third quarter cumulative period, there were no material changes in the occurrence of major risks among those relating to the business and accounting conditions described in this quarterly report that management recognizes could materially affect the company's financial position, results of operations, or cash flows, or in the business and other risks described in the securities report for the previous fiscal year.」
The company states that there were no new occurrences or material changes in the key risks, including higher fixed costs associated with equipment installations and their impact on earnings. - FY2022-Q3MitigatedAnnual report
「Earnings were substantially above the same period of the previous year, reflecting the results of continued efforts to improve productivity and reduce total costs, together with the effect of impairment losses recognized in the previous fiscal year.」
The company states that the benefits of the impairment losses recognized in the previous fiscal year contributed to improved profitability, together with improvements in productivity and reductions in total costs. - FY2022-Q1MitigatedAnnual report
「Earnings were substantially higher than in the year-earlier period, reflecting the results of continued efforts to reduce total costs and improve productivity, together with the effect of the impairment loss recognized in the previous fiscal year.」
The company states that the benefits of the impairment losses recognized in the previous fiscal year contributed to improved profitability, indicating that some of the fixed-asset-related burden that had affected earnings in the past was alleviated. - FY2020WorsenedAnnual report
「Although the ratio of fixed costs increased as sales declined, efforts to improve operating efficiency and reduce expenses resulted in earnings exceeding the previous fiscal year's results. However, the company reported an operating loss.」
The company states that the fixed-cost ratio continued to rise as sales declined. Although operating efficiency improvements and cost reductions improved profitability, an operating loss remained. - FY2019WorsenedAnnual report
「Profitability declined significantly due to a higher fixed-cost ratio accompanying lower sales, a higher materials-cost ratio resulting from greater product-specification diversification and other factors, and lower production efficiency resulting from more complex product specifications.」
The company states that higher fixed costs associated with equipment installations, a higher fixed-cost ratio due to lower sales, and higher materials costs and lower production efficiency resulting from more diverse and complex product specifications combined to significantly reduce profitability. - FY2019-Q3RestatedAnnual report
「However, in addition to the decline in earnings accompanying the decrease in sales through September, fixed costs, including depreciation expense, increased due to the introduction of labor-saving equipment at the Kanto Plant and large-scale thermal insulation testing equipment at the Shiga Plant during the second half of the previous fiscal year, resulting in lower revenue and lower earnings.」
The company states that higher fixed costs, including depreciation expense, from equipment introduced in the second half of the previous fiscal year, together with the decline in earnings accompanying lower sales, contributed to lower revenue and lower earnings. - FY2019-Q2RestatedAnnual report
「The company worked to reduce costs through expense cuts and production improvements, but these efforts were insufficient to offset the decline in earnings resulting from lower sales and the increase in fixed costs caused by the introduction of labor-saving equipment at the Kanto Plant and a large-scale thermal insulation testing apparatus at the Shiga Plant during the second half of the previous fiscal year.」
The company states that higher fixed costs from the introduction of labor-saving equipment and large-scale thermal insulation testing equipment, together with lower sales, reduced earnings and could not be offset by efforts to lower costs. - FY2019-Q1WorsenedAnnual report
「In terms of profitability, no significant improvement is expected until the benefits of the investments materialize, due to higher depreciation expense from investments made last year and planned investments, as well as higher miscellaneous expenses associated with the installation of equipment.」
The company expects the impact on earnings from higher fixed costs incurred in the previous fiscal year to continue, in the form of higher depreciation expense and miscellaneous expenses from future investments, until the benefits of those investments materialize. - FY2018MaterialisedAnnual report
「In terms of earnings, the increase in fixed costs resulting from the introduction of labor-saving production equipment at the Kanto Plant and large-scale thermal insulation performance testing equipment at the Shiga Plant, undertaken with a view to the future, as well as higher costs during the launch of production for new products, had a significant impact.」
The company states that higher fixed costs associated with the introduction of labor-saving production equipment and large-scale thermal insulation performance testing equipment, together with higher costs during new-product launches, had a significant impact on earnings for the full year. - FY2018-Q3MaterialisedAnnual report
「In addition, higher fixed costs associated with the introduction of a large-scale thermal insulation testing system and production lines that use automation to reduce labour requirements and improve efficiency, as part of upfront investment for the future, affected profit.」
The company states that fixed costs increased and affected earnings as a result of introducing equipment and production lines as upfront investments.