Sharp decline in orders from key customers and delays in recovering capital investment
First written in FY2017. 9 of 28 entries say "Restated". Latest entry: 2026-08-06.
Neturen moved to the "Worse" side of this theme in 2025, 6 years after the typical company in this theme (2019).
The whole theme swung hardest in 2022: 2 of 7 companies on the "Worse" side.
4 other companies' latest entry also says "Mitigated".
- FY2026-H1WorsenedAnnual report
「Revenue from heat-treatment contract processing declined. Some customers increased production ahead of the planned tariff increases in the United States, but the impact was limited and insufficient to offset the downturn in the construction-equipment industry.」
Rush production by some customers was insufficient to offset the downturn in the construction-equipment industry, and declining orders from key industries translated into lower revenue from contract processing. - FY2025WorsenedAnnual report
「Revenue from heat-treatment contract processing declined year on year. Orders in the automotive-related industry turned lower from the latter part of the second half due to reduced production by automakers that use our Group's contract-processed products, while production volumes at key customers in the construction-equipment and machine-tool industries also remained weak.」
In addition to lower automaker production, weak production at key customers in the construction-equipment and machine-tool industries translated into lower revenue from contract processing. - FY2025-H1Persistent disparities in recovery by industryAnnual report
「Revenue from heat-treatment contract processing declined year on year. Orders from the automotive-related industry were on a recovery trend, but orders from key customers in the construction-equipment and machine-tool industries remained weak.」
While orders in the automotive-related industry were on a recovery trend, orders from key customers in the construction-equipment and machine-tool industries remained weak, with disparities in recovery by industry persisting. - FY2024Persistent disparities in recovery by industryAnnual report
「Revenue from heat-treatment contract processing declined year on year. Orders from the automotive-related industry were on a recovery trend, but orders from the construction-equipment industry, which had remained relatively firm, turned lower in the latter part of the second half, while orders from the machine-tool industry fell substantially due to the impact of customer inventory adjustments.」
The automotive-related industry entered a recovery trend, while the construction-equipment industry turned lower in the latter part of the second half and the machine-tool industry fell substantially due to inventory adjustments, with differences in recovery by industry persisting. - FY2024-Q3Persistent disparities in recovery by industryAnnual report
「Revenue from heat-treatment contract processing declined year on year. Orders from the construction-equipment industry remained relatively firm, particularly for large models, and orders from the previously struggling automotive-related industry were on a recovery trend. In contrast, orders from the machine-tool industry had fallen substantially due to customer inventory adjustments.」
The construction-equipment industry remained relatively firm, particularly for large models, and the automotive-related industry was on a recovery trend, while orders from the machine-tool industry fell substantially due to inventory adjustments, with disparities in recovery by industry persisting. - FY2024-Q2Persistent disparities in recovery by industryAnnual report
「Revenue from heat-treatment contract processing declined year on year. Orders from the construction-equipment industry remained relatively firm, particularly for large models, and orders from the previously struggling automotive-related industry were on a recovery trend, but orders from the machine-tool industry had fallen substantially due to customer inventory adjustments.」
The construction-equipment industry remained relatively firm and the automotive-related industry was on a recovery trend, while orders from the machine-tool industry fell substantially due to inventory adjustments, with disparities in recovery by industry persisting. - FY2024-Q1Persistent disparities in recovery by industryAnnual report
「Revenue from heat-treatment contract processing declined year on year. Orders from the construction-equipment industry remained relatively firm, particularly for large models, but orders from the struggling automotive-related industry had not reached a full recovery despite signs of customer inventory adjustments and easing parts shortages. Orders from the machine-tool industry also remained weak due to customer inventory adjustments.」
While orders from the construction-equipment industry remained relatively firm, the automotive industry had not achieved a full recovery and the machine-tool industry remained weak due to inventory adjustments, with differences in order conditions among key customers persisting. - FY2023-Q3RestatedAnnual report
「Revenue from heat-treatment contract processing declined year on year as the business struggled with continued intermittent production stoppages in the automotive industry and was unable to offset this weakness with orders from the construction-equipment and machine-tool industries, where orders remained firm.」
While orders from the construction-equipment and machine-tool industries remained firm, intermittent production stoppages in the automotive industry continued, and the decline in orders from key customers translated into lower revenue. - FY2023-Q2RestatedAnnual report
「Revenue from heat-treatment contract processing declined year on year as the business struggled with continued intermittent production stoppages in the automotive industry and was unable to offset this weakness with orders from the construction-equipment and machine-tool industries, where orders remained firm.」
While orders from the construction-equipment and machine-tool industries remained firm, intermittent production stoppages in the automotive industry continued, resulting in lower revenue from heat-treatment contract processing. - FY2023-Q1Recovery in orders by industry alongside production stoppages in the automotive industryAnnual report
「Revenue from heat-treatment contract processing declined year on year. Orders from the construction-equipment and machine-tool industries remained firm, but orders failed to grow due in part to the impact of intermittent production stoppages in the automotive industry.」
While orders from the construction-equipment and machine-tool industries remained firm, orders from the automotive industry failed to grow due to intermittent production stoppages, resulting in divergent order conditions among key customers by industry. - FY2022MitigatedAnnual report
「Revenue from heat-treatment contract processing increased year on year as orders from the machine-tool and construction-equipment industries recovered.」
The recovery in orders from the machine-tool and construction-equipment industries in which key customers operate translated into higher full-year revenue, and the risk of declining orders began to ease. - FY2022-Q3MitigatedAnnual report
「Revenue from heat-treatment contract processing increased year on year as orders from industries including automotive, machine tools and construction equipment recovered.」
The recovery in orders from the automotive, machine-tool and construction-equipment industries in which key customers operate continued, and the risk of declining orders continued to ease. - FY2022-Q2MitigatedAnnual report
「Revenue from heat-treatment contract processing increased year on year as orders from industries including automotive, machine tools and construction equipment recovered.」
The recovery in orders from the automotive, machine-tool and construction-equipment industries in which key customers operate translated into higher revenue, and the risk of declining orders began to ease. - FY2022-Q1MitigatedAnnual report
「Revenue from heat-treatment contract processing increased substantially year on year as orders from key industries, including automotive, machine tools and construction equipment, recovered.」
Orders recovered from the automotive, machine-tool and construction-equipment industries in which key customers operate, resulting in a substantial increase in revenue from heat-treatment contract processing. The decline in orders from key customers that occurred in the previous fiscal year began to ease during the current quarter. - FY2021-Q3RestatedAnnual report
「During the cumulative third quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
The company states that there have been no material changes to the risks of declining orders from key customers or delays in recovering capital invested in facilities. - FY2021-Q1MaterialisedAnnual report
「However, affected by the global spread of COVID-19, orders declined substantially, particularly in the automotive industry,」
The decline in orders from major customers, previously described as a possibility, actually occurred, particularly in the automotive industry, resulting in lower company-wide revenue and losses. - FY2020WorsenedAnnual report
「If the negative impact of the COVID-19 pandemic on the global economy persists and orders from major customers decline more than expected, fixed costs such as personnel expenses and depreciation expenses will become a relatively heavier burden, potentially having a significant impact on the performance of our Group. In addition, delays in recovering funds invested in facilities could result in impairment losses.」
In addition to the existing risk of fluctuations in orders from key customers, the company has added the risks of a sharp decline in orders, a heavier fixed-cost burden, delays in recovering capital invested in facilities and impairment arising from a prolonged COVID-19 pandemic. - FY2020-Q3RestatedAnnual report
「No new business or other risks arose during the cumulative third quarter of the fiscal year under review. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The company states that there have been no material changes to the risks of declining orders from key customers or delays in recovering capital invested in facilities. - FY2019MitigatedAnnual report
「Regarding the risk of sharp fluctuations in orders from key customers, we will consider trends in the industries to which we supply our products, as well as order conditions and other factors, take swift and appropriate measures, and respond promptly to changes in the business environment.」
The company has set out a policy of taking swift measures based on industry trends and order conditions to address the fixed-cost burden and impairment risk arising from fluctuations in orders from key customers. - FY2019-Q3RestatedAnnual report
「No new business or other risks arose during the cumulative third quarter of the fiscal year under review. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The company states that there have been no material changes to the risks of declining orders from key customers or delays in recovering capital invested in facilities. - FY2019-Q2RestatedAnnual report
「There were no newly arising business or other risks during the cumulative second quarter of the current consolidated fiscal year. In addition, there were no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
The company states that there have been no material changes to the risks of declining orders from key customers or delays in recovering capital invested in facilities. - FY2019-Q1RestatedAnnual report
「During the current first-quarter consolidated cumulative period, no new business or other risks arose. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The company states that there have been no material changes to the risks of declining orders from key customers or delays in recovering capital invested in facilities. - FY2018-Q3RestatedAnnual report
「No new business or other risks arose during the cumulative third quarter of the fiscal year under review. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The company states that there have been no material changes to the risks of declining orders from key customers or delays in recovering capital invested in facilities. - FY2018-Q2RestatedAnnual report
「There were no newly arising business or other risks during the cumulative second quarter of the current consolidated fiscal year. In addition, there were no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」
The company states that there have been no material changes to the risks of declining orders from key customers or delays in recovering capital invested in facilities. - FY2017First statedAnnual report
「However, if orders from these key customers decline more than expected, fixed costs such as depreciation expenses will become a relatively heavier burden, potentially having a significant impact on the performance of our Group. In addition, delays in recovering funds invested in facilities could result in impairment losses.」
The company has for the first time organized the risks associated with fluctuations in orders from the automotive, construction equipment and civil engineering and construction industries, including the increased burden of fixed costs and the risk of impairment of capital investments.