Financial, Operational and Supply Chain Response to the COVID-19 Crisis
First written in FY2020. 5 of 10 entries say "Advanced", first in FY2021-Q1. Latest entry: FY2024-Q1.
The whole theme swung hardest in 2024: 1 of 10 companies on the "Worse" side.
2 other companies' latest entry also says "Mitigated".
- FY2024-Q1MitigatedAnnual report
「Against this backdrop, during the 3-month period ended June 2023, the increase in mass-production sales accompanying the normalization of customers’ production activities substantially exceeded the decline in model-development sales, including sales of dies and equipment. Together with foreign-exchange effects and other factors, this resulted in sales of ¥78,818 million, up 16.8% year on year.」
The increase in mass-production sales accompanying the normalization of customers' production activities exceeded declines in mold and equipment sales and other items, resulting in a 16.8% year-on-year increase in sales. Production recovery progressed in terms of operating performance after the COVID-19 pandemic and supply constraints. - FY2023-Q1Production adjustments caused by the Shanghai lockdown and normalization in the second halfAnnual report
「In the automotive industry, major customers made production adjustments at the start of the period due to the global semiconductor shortage and the impact of the Shanghai lockdown, but production moved toward normalization in the latter half.」
The crisis response was described as being at a stage where production adjustments at the beginning of the period caused by the semiconductor shortage and the Shanghai lockdown coexisted with the normalization of production in the second half of the period. - FY2022Production recovery and supply constraints coexistAnnual report
「Based on available information, including various economic forecasts and customers' production plans, we expect fiscal 2023 to recover toward the end of the fiscal year, despite fluctuations along the way.」
Taking into account the recovery in demand and production after the COVID-19 pandemic and uncertainties including semiconductor shortages, parts supply shortages and geopolitical risks, the company indicated that fiscal 2023 is expected to recover toward the end of the fiscal year, despite fluctuations. - FY2022-Q3Recovery outlook with supply concerns remainingAnnual report
「Although supply-side concerns remain, based on available information, including the spread of the infection and regulatory conditions in countries mainly in Asia, customers' production conditions and various economic forecasts, we expect a gradual recovery from the fourth-quarter accounting period onward toward the end of the fiscal year.」
While production recovery from the COVID-19 pandemic is progressing, the company expects a gradual recovery toward the end of the fiscal year from the fourth quarter onward, taking into account the resurgence of infections and continuing shortages of semiconductors and parts. - FY2022-Q2AdvancedAnnual report
「At our company as well, sales of mass-produced and non-mass-produced products increased as production recovered from the COVID-19 pandemic. However, in addition to the semiconductor shortage that had continued since the first quarter, difficulties in procuring parts became more severe as infections spread in Southeast Asia, and our customers' production cuts caused the number of units produced to order to fall significantly below the initial plan.」
Production recovery progressed after the pandemic, but the semiconductor shortage and difficulties in procuring parts caused by the spread of infections in Southeast Asia became new constraints. Crisis response has reached a stage in which production recovery and responses to supply constraints are proceeding in parallel. - FY2022-Q1AdvancedAnnual report
「During the current first-quarter cumulative period, sales of mass-produced and non-mass-produced products increased as production recovered from the COVID-19 pandemic, but growth remained sluggish due to customers' production adjustments caused by the semiconductor shortage. Sales therefore amounted to ¥55,739 million, up 68.2% year on year. In earnings, the effects of cost reductions and cuts in selling, general and administrative expenses implemented during the pandemic continued in addition to the benefits of higher sales, resulting in operating income of ¥1,638 million, compared with an operating loss of ¥2,166 million in the same period of the previous year.」
As production recovered after the operational stoppages and the effects of cost reductions and selling, general and administrative expense reductions continued, operating income turned profitable from a loss in the same period of the previous year. The crisis response has translated into a concrete recovery in operating performance. - FY2021-Q3AdvancedAnnual report
「Regarding results for the current third-quarter cumulative period, the trend shifted toward recovery from the second quarter onward. In China, production volumes increased amid favorable market conditions, while production also recovered in other regions,」
After production stoppages caused by COVID-19, production recovered in China and other regions from the second quarter onward, indicating progress in restarting operations as part of the crisis response. However, consolidated sales declined 12.4% year on year and remained in the recovery phase. - FY2021-Q2AdvancedAnnual report
「In response to the sharp decline in sales, the group companies pursued cost reductions and efficiency improvements. However, excluding the China region, the impact of lower revenue was substantial. Operating profit was ¥500 million, down 89.5% year on year, ordinary profit was ¥407 million, down 91.9%, and net profit attributable to owners of the parent was ¥188 million, down 94.2%.」
As a crisis response to the sharp decline in revenue caused by COVID-19, the company explicitly stated that it was pursuing cost reductions and efficiency improvements at group companies. Revenue declines were significant in regions outside China, and earnings contracted sharply despite these measures. - FY2021-Q1AdvancedAnnual report
「Although production is being restarted sequentially, the impact of production cuts remains significant」
The company stated that production was being restarted sequentially after production stoppages in each region caused by COVID-19, indicating progress in restarting operations as part of its crisis response. - FY2020First statedAnnual report
「In response to the current crisis, as an immediate measure, we are working to ensure employee safety, secure on-hand liquidity and maintain the supply chain.」
In response to production stoppages and declining demand caused by COVID-19, the company presented infection prevention, securing on-hand liquidity through borrowings, maintaining the supply chain, restarting operations, remote work and online procurement as an integrated crisis response for the first time as a standalone section.