Risk of lower production, supply chain disruption and lower sales due to COVID-19
First written in FY2020. 5 of 12 entries say "Materialised", first in FY2021-Q1. Latest entry: FY2024.
The whole theme swung hardest in 2020: 102 of 175 companies on the "Worse" side.
- FY2024RestatedAnnual report
「The group is working to minimize business losses while giving top priority to protecting the lives and safety of employees, their families and other stakeholders in response to COVID-19 and other infectious diseases.」
The possibility of lower sales due to production stoppages caused by infectious diseases, supply chain disruptions and reduced customer activity is reiterated as a major risk. - FY2023-Q3MaterialisedAnnual report
「② China Declines in sales of metal-cutting circular saw blades and orders for circular saw blades for housing materials due to the effects of the zero-COVID policy and other factors resulted in net sales of ¥4,221 million, down 0.1% year on year.」
The zero-COVID policy implemented in response to COVID-19 is reflected in actual results as a factor behind declines in sales of metal-cutting circular saw blades and orders for circular saw blades for housing materials in China. - FY2023-Q2RestatedAnnual report
「Sales in China on a local-currency basis declined due in part to the impact of lockdowns under the zero-COVID policy, but the weaker yen resulted in net sales of ¥2,921 million, up 4.4% year on year.」
The lockdowns under China's zero-COVID policy continued to be reflected in actual results as a decline in sales on a local-currency basis. However, sales translated into yen, including the benefit of the weaker yen, increased 4.4% year on year. - FY2023-Q1MaterialisedAnnual report
「Domestic sales in China declined partly due to the impact of lockdowns under the zero-COVID policy, but steady intersegment sales resulted in net sales of ¥1,369 million, up 6.1% year on year.」
The company states that domestic sales in China declined due to the impact of lockdowns under the zero-COVID policy. However, intersegment sales resulted in a 6.1% year-on-year increase in total sales for the China segment. - FY2022Pandemic, logistics and supply risks continue amid company-wide recoveryAnnual report
「Although logistics disruptions caused delays in product deliveries and other issues, the recovery in sales of metal-cutting circular saw blades and other factors resulted in net sales of ¥1,279 million, up 10.3% year on year.」
Although the resurgence of infections, component shortages, logistics disruptions, and higher raw material and transportation costs continued, full-year company-wide performance recovered and sales increased in each overseas region. The effects of pandemic-related risks have shifted from company-wide declines in sales and profits to individual supply constraints such as delivery delays. - FY2022-Q3Company-wide recovery amid the Omicron resurgence and logistics disruptionsAnnual report
「Subsequently, the outlook for the economy has remained uncertain due to the resurgence of infections caused by the highly transmissible Omicron variant, shortages of various components including semiconductors, and rising raw material and transportation costs. Although logistics disruptions caused delays in product deliveries and other issues, the recovery in sales of metal-cutting circular saw blades and other factors resulted in net sales of ¥1,279 million, up 10.3% year on year.」
Although the effects of the resurgence of infections, logistics disruptions and component shortages continued, company-wide performance recovered, and sales in the United States increased 10.3% year on year despite delivery delays. - FY2022-Q2Performance recovery and some supply delays amid the pandemicAnnual report
「Orders remained firm, but delays in deliveries from overseas factories caused by the spread of COVID-19 resulted in net sales of ¥409 million, down 16.3% year on year.」
Although the company as a whole recovered orders and recorded a 42.7% year-on-year increase in sales and a substantial increase in profit, delays in deliveries from overseas factories in the United States resulted in a 16.3% year-on-year decline in sales. The effects of the pandemic remain, but their manifestation has changed from company-wide declines in sales and profits in the previous fiscal year. - FY2022-Q1Performance recovery with some supply delays amid the pandemicAnnual report
「With the prevention of COVID-19 infections as its top priority, the group worked to ensure stable supplies of products and services to customers and to establish efficient production systems suited to the characteristics of its production sites in Japan, China and Thailand. Orders remained firm, but delays in deliveries from overseas factories caused by the spread of COVID-19 resulted in net sales of ¥409 million, down 16.3% year on year.」
Although the group as a whole recovered orders and recorded higher sales and profits amid the pandemic, delays in deliveries from overseas factories in the United States resulted in a 16.3% year-on-year decline in sales. The pandemic's effects on the supply chain and sales remain, but their manifestation has changed from company-wide declines in sales and profits in the previous fiscal year. - FY2021-Q3MaterialisedAnnual report
「Although there were signs of recovery in some sectors, including the automotive industry, amid an extremely challenging business environment in Japan and overseas, revenue for the nine-month period ended December was ¥7,888 million, down 12.2% year on year. In terms of profit, operating profit was ¥1,046 million, down 17.6% year on year, ordinary income was ¥1,146 million, down 17.7% year on year, and net income attributable to owners of the parent was ¥796 million, down 16.5% year on year.」
As the effects of COVID-19 continued, net sales declined 12.2% year on year and operating profit declined 17.6%. The challenging business environment caused by the pandemic and its impact on performance are reflected in actual results. - FY2021-Q2MaterialisedAnnual report
「The group is operating in an extremely challenging business environment due to weakness in the domestic and overseas economies, but has worked to continue supplying products and conducting sales activities while prioritizing the prevention of COVID-19 infections. It has also promoted new product development and worked to secure orders and sales. However, net sales for the first six months of the current fiscal year amounted to ¥4,904 million, down 19.0% year on year. In terms of profit, operating profit was ¥523 million, down 41.8% year on year, due in part to production adjustments in response to lower orders.」
The economic downturn caused by COVID-19, lower orders, production adjustments, and declines in net sales and operating profit are reflected in actual results as a 19.0% year-on-year decrease in sales and a 41.8% year-on-year decrease in operating profit. - FY2021-Q1MaterialisedAnnual report
「Despite operating under restrictions on corporate activities, the group has worked to continue supplying products and conducting sales activities while prioritizing the prevention of COVID-19 infections. It has also promoted new product development and worked to secure orders and sales, but net sales for the first quarter of the current fiscal year amounted to ¥2,500 million, down 17.6% year on year. In terms of profit, operating profit was ¥331 million, down 23.1% year on year, due in part to production adjustments in response to lower orders.」
Restrictions on corporate activities due to COVID-19, lower orders, production adjustments, and declines in net sales and operating profit are reflected in actual results. - FY2020First statedAnnual report
「In response to the global spread of COVID-19, which became prominent in early 2020, the group has taken measures including thorough hygiene controls and restrictions on attendance to prevent employee infections. However, the group's operating performance and financial position may be adversely affected by temporary production stoppages due to employee infections, supply chain disruptions, and lower sales and other revenue resulting from customer companies suspending or scaling back their business activities.」
The global spread of COVID-19 is explicitly identified as a new major risk. Although the spread itself has already occurred, the effects on the company's performance of employee infections, production stoppages, supply chain disruptions and reduced customer activity are described as possibilities.