Improving Profitability and Strengthening the Corporate Structure through Cost and Expense Reduction
First written in FY2016. 17 of 38 entries say "Advanced", first in FY2017-Q3. Latest entry: FY2026.
- FY2026AdvancedAnnual report
「In terms of expenses, energy prices were about the same as in the previous fiscal year, but raw material prices increased from the latter part of the second half. As a result of negotiations to raise unit prices, profit increased from the previous fiscal year.」
After negotiating price increases in response to higher raw material prices, operating income improved from a loss of ¥47 million in the previous fiscal year to ¥371 million. - FY2026-H1AdvancedAnnual report
「Against this backdrop, the Group promoted the quantification of operations in preparation for labor shortages and other issues, while considering mechanization and automation. It worked to strengthen its earnings structure and improve productivity. During the interim consolidated accounting period, the Group reported net sales of ¥2,654 million, up 5.0% year on year, operating income of ¥225 million, up 308.4% year on year, and ordinary income of ¥233 million, up 247.7% year on year.」
As the company continued to quantify operations, improve productivity, and consider mechanization and automation, operating income increased 308.4% year on year and ordinary income increased 247.7%, indicating a measurable improvement in earnings power. - FY2025-H1AdvancedAnnual report
「Against this backdrop, the Group promoted the development of multiskilled workers and the quantification of operations in preparation for labor shortages and other issues, while beginning mechanization and automation. It worked to strengthen its earnings structure and improve productivity while reviewing its production system. During the interim consolidated accounting period, the Group reported net sales of ¥2,527 million, up 2.1% year on year, operating income of ¥55 million, compared with an operating loss of ¥19 million in the same interim period of the previous year, and ordinary income of ¥67 million, compared with an ordinary loss of ¥44 million.」
In addition to developing multiskilled workers, quantifying operations, and reviewing the production system, the company began considering mechanization and automation. Operating income improved from a loss of ¥19 million in the previous year to ¥55 million, while ordinary income improved from a loss of ¥44 million to income of ¥67 million. - FY2024-Q3Profitability analysis by processing type conductedAnnual report
「Under these economic conditions, the Group worked to reduce costs at each plant and improve productivity by strengthening earnings management, including by analyzing profitability by type of processing.」
Regarding the strengthening of earnings management through profitability analysis and visualization by processing type outlined in the previous fiscal year, the company stated that it actually conducted profitability analysis by processing type during the quarter. - FY2024-Q2RestatedAnnual report
「In terms of profit, the company worked to reduce electricity and raw material costs, but operating income and ordinary income declined from the same quarter of the previous year.」
The company continues to pursue a policy of improving earnings power by reducing electricity and raw material costs, but operating income and ordinary income declined year on year. - FY2024-Q1Profit decline despite cost-cutting effortsAnnual report
「In terms of profit, energy and raw material costs continued to rise. Although the company worked to reduce costs and take other measures, profit declined.」
Although energy and raw material costs continued to rise, profit declined despite efforts to reduce costs and take other measures. The policy of improving earnings power by reducing costs and expenses remains in place. - FY2023具体化 of profitability analysis by processing type and customerAnnual report
「To improve profitability, the company will analyze earnings by processing type, quantify and visualize where profits are generated and where costs can be reduced, and strengthen earnings management. It will also analyze sales and profits by customer, identify which customer relationships are effective, and use customer-level profitability analysis to improve earnings.」
In addition to its existing policy of reducing costs and expenses, the company specifically identified profitability analysis by processing type and customer, quantification, and assessment of customer-level profitability as concrete means of managing earnings. - FY2023-Q3AdvancedAnnual report
「In terms of expenses, raw material and electricity costs rose, but operating income and ordinary income increased from the same quarter of the previous year because of decreases in outsourced processing costs and costs related to compensation for defective products.」
Amid higher raw material and electricity costs, decreases in outsourced processing costs and costs related to compensation for defective products improved operating income from a loss of ¥1 million in the same quarter of the previous year to ¥81 million, and ordinary income from ¥6 million to ¥95 million. - FY2023-Q2AdvancedAnnual report
「In terms of expenses, electricity and raw material costs rose, but operating income and ordinary income increased from the same quarter of the previous year as a result of efforts to reduce expenses.」
Amid higher electricity and raw material costs, the company worked to reduce expenses. Operating income increased from ¥10 million in the same quarter of the previous year to ¥65 million, while ordinary income rose from ¥15 million to ¥76 million. - FY2023-Q1AdvancedAnnual report
「In terms of expenses, energy and raw material costs rose, but profit increased as a result of measures including increases in heat-treatment prices.」
Amid higher energy and raw material costs, profit increased as a result of measures including increases in heat-treatment prices. Operating income improved from a loss of ¥14 million in the same quarter of the previous year to ¥35 million. - FY2022AdvancedAnnual report
「The company also revised heat-treatment prices at all plants and worked to establish a stronger earnings structure.」
The company proceeded with the transfer of transactions following the closure of the Nagano Plant, integrated operations at the Higashimatsuyama and Atsugi plants, consolidated production at the Yamaguchi Plant, and revised heat-treatment prices at all plants. Full-year operating income improved from a loss of ¥111 million in the previous fiscal year to income of ¥113 million. - FY2022-Q3Operating loss amid price-per-unit revisionsAnnual report
「The company transferred transactions at the closed Nagano Plant to other plants, including the Higashimatsuyama and Atsugi plants, consolidated production at the Yamaguchi Plant, and revised heat-treatment prices at all plants, thereby strengthening its earnings structure and working to improve productivity.」
The company identified the transfer of transactions between plants, production consolidation, and revisions to heat-treatment prices at all plants as measures to strengthen its earnings structure, but higher raw material and outsourced processing costs resulted in a consolidated operating loss of ¥1 million. - FY2022-Q2AdvancedAnnual report
「Although manufacturing costs, including raw material and electricity costs, increased, operating income and ordinary income rose from the same quarter of the previous year as a result of efforts to reduce expenses.」
Amid higher manufacturing costs, including raw material and electricity costs, the company worked to reduce expenses. Operating income improved from an operating loss of ¥37 million in the same quarter of the previous year to ¥10 million, while ordinary income improved from an ordinary loss of ¥11 million to ¥15 million. - FY2022-Q1Operating loss due to higher raw material and outsourced processing costsAnnual report
「However, in terms of expenses, higher raw material costs and increased outsourced processing costs resulted in an operating loss.」
While reviewing its production structure and transaction profitability, the company was affected by higher raw material costs and increased outsourced processing costs, which led to an operating loss. - FY2021Operating loss due to site closure costsAnnual report
「In terms of expenses, the company recorded an operating loss for the current period because it incurred relocation costs associated with the closure of the Nagano Plant.」
While pursuing efficiency improvements to enhance profitability, the company incurred relocation costs associated with the closure of the Nagano Plant, resulting in a full-year operating loss of ¥111 million. - FY2021-Q3Cost reductions were insufficient to offset lower sales and profitAnnual report
「In terms of expenses, although the company cut outsourced processing costs, labor costs, and other expenses in an effort to secure profit, these efforts were insufficient to offset the decline in profit caused by lower sales, and segment profit declined.」
Although the company cut outsourced processing costs, labor costs, and other expenses, the metal heat-treatment processing business could not offset the decline in sales, and segment profit was ¥43 million, down 2.4% year on year. - FY2021-Q2Expense cuts were insufficient to absorb lower sales, resulting in an operating lossAnnual report
「In terms of expenses, the company worked to reduce energy costs and cut expenses, but these efforts were insufficient to absorb the decline in sales, resulting in an operating loss.」
Although the company worked to reduce expenses, it could not absorb the 16.4% decline in sales, and operating profit turned from ¥60 million in the same quarter of the previous year to an operating loss of ¥37 million. - FY2021-Q1Cost reductions were insufficient to absorb lower salesAnnual report
「In terms of expenses, although energy costs and outsourced processing costs declined, these reductions were insufficient to absorb the decline in sales, resulting in an operating loss.」
Although energy costs and outsourced processing costs declined, the company could not absorb the decline in sales, resulting in an operating loss of ¥84 million. - FY2020Cost cuts were insufficient to offset lower salesAnnual report
「In terms of expenses, although the company cut outsourced processing costs, labor costs, and other expenses in an effort to secure profit, these efforts were insufficient to offset the decline in profit caused by lower sales, and operating profit declined from the previous fiscal year.」
Although the company cut outsourced processing costs, labor costs, and other expenses, it could not offset the decline in sales, and operating profit was ¥19 million, down 92.1% from the previous fiscal year. - FY2020-Q3Cost cuts were insufficient to offset lower salesAnnual report
「In terms of expenses, although the company cut outsourced processing costs, labor costs, and other expenses in an effort to secure profit, these efforts were insufficient to offset the decline in profit caused by lower sales, and operating profit declined compared with the same quarter of the previous year on a consolidated cumulative basis. As a result of these business activities, sales for the third quarter of the current fiscal year on a consolidated cumulative basis were ¥4,257 million, down 10.9% year on year, and operating profit was ¥91 million, down 62.7% year on year.」
Although the company worked to secure profit by reducing outsourced processing costs, labor costs, and other expenses, it could not offset the decline in sales, and operating profit declined 62.7% year on year. - FY2020-Q2Profit declined as lower orders could not be offsetAnnual report
「In terms of expenses, although the company worked to reduce energy costs and consumable-tool expenses, these efforts were insufficient to offset the decline in orders, and operating profit declined.」
Although the company worked to reduce energy costs and consumable-tool expenses, it could not offset the decline in orders, and operating profit was ¥60 million, down 67.6% year on year. - FY2020-Q1Operating loss despite efforts to improve profitabilityAnnual report
「Under these economic conditions, the company worked to improve profitability by reviewing existing business relationships, improving productivity, and reducing costs, while also intensifying order-winning activities. In terms of expenses, energy costs and outsourced processing costs declined, but higher repair expenses resulted in an operating loss. Operating loss for the first quarter of the current fiscal year on a consolidated cumulative basis was ¥18 million.」
Although the company reviewed business relationships, improved productivity, and reduced costs to improve profitability, higher repair expenses resulted in an operating loss of ¥18 million. - FY2019Full-year profit declined amid higher costsAnnual report
「In terms of expenses, operating profit declined from the previous fiscal year because costs, including energy and repair expenses, increased.」
Although the company worked to reduce costs and expenses and improve the profitability of its business relationships in response to higher energy and repair costs, full-year operating profit declined 22.9% from the previous fiscal year. - FY2019-Q3Profit continued to decline amid higher expensesAnnual report
「The Group worked to review existing business relationships, intensify order-winning activities, and improve productivity. Orders from its core industrial-machine-tool-related and automotive-parts-related industries remained generally firm, resulting in higher sales compared with the same quarter of the previous year on a consolidated cumulative basis. However, operating profit declined because of increases in expenses, including energy costs and repair expenses.」
Although the company reviewed business relationships, intensified order-winning activities, and worked to improve productivity, operating profit declined 26.6% year on year because of increases in expenses, including energy costs and repair expenses. - FY2019-Q2Profit continued to decline amid higher manufacturing expensesAnnual report
「The Group worked to review existing business relationships, intensify order-winning activities, and review business processes. Orders from its core automotive-parts-related and industrial-machine-tool-related industries remained generally firm, resulting in higher sales compared with the same quarter of the previous year on a consolidated cumulative basis. However, operating profit declined because of increases in manufacturing expenses, including energy costs and repair expenses.」
Although the company reviewed business relationships, intensified order-winning activities, and reviewed business processes, operating profit declined 27.8% year on year because of increases in manufacturing expenses, including energy costs and repair expenses. - FY2019-Q1Profit declined amid higher manufacturing expensesAnnual report
「The Group worked to improve profitability through intensified order-winning activities, a review of existing business relationships, and cost reductions. Orders from its core automotive-parts-related and industrial-machine-tool-related industries remained generally firm, resulting in higher sales compared with the same quarter of the previous year on a consolidated cumulative basis. However, operating profit declined because of increases in manufacturing expenses, including energy costs and repair expenses.」
Although the company intensified order-winning activities, reviewed business relationships, and reduced costs, operating profit declined 34.2% year on year because of increases in manufacturing expenses, including energy costs and repair expenses. - FY2018AdvancedAnnual report
「Although electricity, gas, labor and other costs increased, segment profit rose because the company worked to improve productivity and reduce expenses in an effort to secure earnings.」
Despite rising costs, the company improved efficiency and reduced expenses, resulting in consolidated operating profit of ¥327 million, up 13.5% from the previous fiscal year. - FY2018-Q3AdvancedAnnual report
「In terms of expenses, although manufacturing costs, including electricity expenses, were rising, the company worked to reduce expenses, resulting in higher profit compared with the same quarter of the previous year on a consolidated cumulative basis.」
Despite rising manufacturing costs, the company worked to reduce expenses, and operating profit increased 37.2% year on year while segment profit in the metal heat-treatment processing business increased 41.9%. - FY2018-Q2AdvancedAnnual report
「Under these economic conditions, the Group worked to improve productivity and reduce costs in an effort to improve profitability. Its core automotive and industrial machine-tool industries remained strong, and orders in the construction machinery-related business also began to recover.」
Amid efforts to improve productivity and reduce costs, sales increased 15.2% year on year and operating profit increased 92.2%, indicating measurable improvement in earnings power. - FY2018-Q1AdvancedAnnual report
「Under these economic conditions, the Group worked to improve productivity and reduce costs in an effort to improve profitability. Orders recovered in the construction machinery-related business in addition to the Group's core automotive and industrial machine-tool industries, resulting in higher sales and profit compared with the same quarter of the previous year on a consolidated cumulative basis. As a result of these business activities, sales for the first quarter of the current fiscal year on a consolidated cumulative basis were ¥1,462 million, up 11.0% year on year, and operating profit was ¥117 million, up 130.1% year on year.」
Amid efforts to improve productivity and reduce costs, sales increased 11.0% and operating profit increased 130.1%, indicating measurable improvement in earnings power. - FY2017AdvancedAnnual report
「In addition, we will improve earnings power and build a resilient corporate structure by promoting efficiency and reducing costs and expenses.」
Against a backdrop of lower manufacturing costs, including electricity expenses, and reductions in costs and expenses, operating profit improved from an operating loss of ¥32 million in the previous fiscal year to operating profit of ¥288 million, and the operating margin was 5.3%. - FY2017-Q3AdvancedAnnual report
「In terms of expenses, manufacturing costs, including electricity expenses, declined, and the company worked to reduce expenses, resulting in higher profit compared with the same quarter of the previous year on a consolidated cumulative basis.」
Against a backdrop of lower manufacturing costs, including electricity expenses, and expense-cutting efforts, operating profit increased 16.8% year on year. The company reported measurable improvement in earnings power. - FY2017-Q2RestatedAnnual report
「In terms of expenses, although manufacturing costs, including gas and electricity expenses, declined and the company worked to reduce expenses, ㈱オーネックステックセンター recorded an operating loss because its burden of expenses such as factory consumables and depreciation was substantial relative to sales. As a result, profit declined compared with the same quarter of the previous year on a consolidated cumulative basis.」
Although the company worked to reduce manufacturing costs, including gas and electricity expenses, the Tech Center's substantial fixed expense burden resulted in lower profit. There was no indication that the cost and expense reduction targets had been changed. - FY2017-Q1Profit declined despite efforts to secure earningsAnnual report
「In addition, although manufacturing costs, including gas and electricity expenses, declined and the company worked to reduce expenses, ㈱オーネックステックセンター, which began operations in December 2015, recorded an operating loss because of the substantial burden of expenses such as factory consumables and depreciation. As a result, profit declined compared with the same quarter of the previous year on a consolidated cumulative basis.」
Although the company benefited from lower manufacturing costs and worked to reduce expenses, operating profit declined 48.2% year on year because of the subsidiary's expense burden. There was no indication that the cost and expense reduction targets had been withdrawn or scaled back. - FY2016First statedAnnual report
「We will improve earnings power and build a resilient corporate structure by promoting efficiency and reducing costs and expenses.」
The company has set a goal of strengthening earnings power and its corporate structure through efficiency gains, cost reductions, and expense cuts.