Pressure on profits from higher manufacturing costs, including energy and repair expenses
First written in FY2019-Q1. 10 of 25 entries say "Materialised", first in FY2019-Q1. Latest entry: 2026-08-14.
Onex moved to the "Worse" side of this theme in 2018, 4 years before the typical company in this theme (2022).
The whole theme swung hardest in 2022: 5 of 9 companies on the "Worse" side.
1 other company's latest entry also says "Mitigated".
- FY2026-H1MitigatedAnnual report
「However, although orders from the company's main customer industries grew only modestly, オーネックステックセンター's revenue increased year on year due to reductions in manufacturing and other costs, and both operating profit and ordinary profit increased.」
At オーネックステックセンター, operating and ordinary profit increased as a result of reductions in manufacturing and other costs. The disclosure describes the effects of measures taken to offset the pressure on profit from manufacturing costs. - FY2024-Q3MaterialisedAnnual report
「In terms of profit, we worked to reduce raw material, electricity and other costs, but soaring expenses caused operating profit and ordinary profit to decline from the same quarter of the previous year.」
While higher raw material, electricity and other manufacturing costs continued to be incurred, operating and ordinary profit declined year on year despite cost-reduction efforts. - FY2024-Q2WorsenedAnnual 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.」
While higher electricity and raw material costs and the associated burden continued, operating profit deteriorated from ¥65 million in the same quarter of the previous year to a loss of ¥19 million, and ordinary profit deteriorated from ¥76 million to a loss of ¥44 million, despite cost-reduction efforts. - FY2024-Q1WorsenedAnnual 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.」
Energy and raw material costs continued to rise. Despite measures including cost reductions, operating profit deteriorated from ¥35 million in the same quarter of the previous year to an operating loss of ¥3 million. - FY2023WorsenedAnnual report
「In terms of expenses, energy and raw material prices soared, and the resulting increase could not be fully covered even by raising unit prices, resulting in lower profit than in the previous fiscal year.」
Energy and raw material prices continued to rise, and even after price increases, the Company could not offset the higher costs, resulting in a 33.8% year-on-year decline in operating profit. - FY2023-Q3MaterialisedAnnual 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.」
Higher raw material, electricity and other manufacturing costs continued to be incurred. However, the decline in outsourced processing costs, compensation for defective products and other expenses improved operating profit from a loss in the same quarter of the previous year to ¥81 million. - FY2023-Q2MaterialisedAnnual 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.」
While higher electricity and raw material costs and other manufacturing costs continued to be incurred, operating profit and ordinary profit increased as a result of expense reductions. - FY2023-Q1MitigatedAnnual 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.」
While higher energy and raw material costs continued in the metal heat treatment processing business, price increases for heat treatment services and other measures improved the business from a segment loss in the same quarter of the previous year to segment profit of ¥15 million. - FY2022Full-year profit rises despite continued high costs as relocation expenses declineAnnual report
「Although energy and raw material costs rose, relocation expenses associated with the closure of the Nagano Plant declined during the period, resulting in higher profit than in the previous period.」
While higher energy and raw material costs continued to be incurred, the decline in relocation expenses associated with the closure of the Nagano Plant improved operating profit from the previous period's operating loss of ¥111 million to ¥113 million. - FY2022-Q3MaterialisedAnnual report
「In the metal heat treatment industry, orders for automotive parts, one of the main customer industries, declined due to the impact of COVID-19 and the global semiconductor shortage. However, orders for industrial machinery, construction machinery and other products increased, resulting in higher revenue than in the same period of the previous year. However, segment profit declined as higher raw material costs and increased outsourced processing costs raised expenses.」
While higher revenue was supported by increased orders in some key areas, soaring raw material costs and higher outsourced processing costs emerged as factors behind the ¥43 million segment loss in the metal heat treatment processing business. - FY2022-Q2MaterialisedAnnual report
「In the metal heat treatment industry, revenue increased from the same period of the previous year because orders increased from key customer industries, including automotive parts and industrial machinery. Revenue at オーネックステックセンター also increased from the same period of the previous year. In terms of expenses, soaring energy and other costs resulted in a segment loss.」
While orders from key customers and revenue at the Tech Center increased, soaring energy and other costs emerged as factors behind the segment loss in the metal heat treatment processing business. - FY2022-Q1Cost factors shifted to raw materials and outsourced processing costsAnnual report
「However, in terms of expenses, higher raw material costs and increased outsourced processing costs resulted in an operating loss.」
Whereas energy costs, repair expenses and other items had previously been the cost factors, the current quarter's earnings discussion identifies soaring raw material costs and higher outsourced processing costs as factors behind the operating loss. - FY2021MaterialisedAnnual report
「The Company recorded an operating loss for the period due to relocation expenses incurred in connection with the closure of the Nagano Plant.」
Relocation expenses associated with the closure of the Nagano Plant were actually incurred and became a factor behind the operating loss. - FY2021-Q2Expense reductions failed to absorb the decline in revenueAnnual report
「In terms of expenses, we worked to reduce energy costs and other expenses, but these efforts were insufficient to absorb the decline in revenue, and segment profit declined.」
Despite efforts to reduce energy costs and other expenses, the 15.6% decline in revenue from the metal heat treatment processing business could not be offset, resulting in a segment loss of ¥53 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 measures were taken to reduce energy costs and subcontracted processing costs, these did not offset the decline in revenue in the metal heat-treatment processing business, resulting in a segment loss of ¥87 million. - FY2020Cost cuts were insufficient to offset lower salesAnnual report
「We reduced subcontracted processing costs, labor costs and other expenses and worked to secure profit, but the reductions were insufficient to offset the decline in profit resulting from lower revenue, and operating profit declined compared with the previous fiscal year.」
Although subcontracted processing costs, labor costs and other expenses were reduced, this did not offset the decline in profit resulting from lower revenue. - FY2020-Q3Cuts in subcontracted processing costs and labor costs failed to offset the decline in revenueAnnual report
「In terms of expenses, we reduced subcontracted processing costs, labor costs and other expenses and worked to secure profit, but the reductions were insufficient to offset the decline in profit resulting from lower revenue, and operating profit declined compared with the same period of the previous year.」
Rather than the previously reported increases in energy costs and repair expenses, the company reduced subcontracted processing costs, labor costs and other expenses this quarter, but could not offset the decline in revenue. - FY2020-Q2Cost reductions failed to offset the decline in ordersAnnual 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.」
Unlike the previous increases in energy costs and repair expenses, we worked to reduce energy costs and consumable tool expenses this quarter, but this was insufficient to offset the decline in orders. - FY2020-Q1A loss due to lower energy costs but higher repair expensesAnnual report
「In terms of expenses, energy costs and subcontracted processing costs declined, but the increase in repair expenses resulted in an operating loss.」
Unlike the previous increase in energy costs, energy costs and subcontracted processing costs declined this quarter, while higher repair expenses contributed to the operating loss. - FY2019MaterialisedAnnual report
「In terms of expenses, operating profit declined from the previous fiscal year because costs, including energy and repair expenses, increased.」
The filing states that actual increases in energy costs, repair expenses and other costs over the full fiscal year contributed to the 22.9% year-on-year decline in operating profit. - FY2019-Q3MaterialisedAnnual report
「Meanwhile, segment profit declined due to increases in expenses, including energy costs and repair expenses.」
Increases in expenses, including energy costs and repair expenses, actually occurred in the metal heat-treatment processing business, and segment profit declined 34.8% year on year. - FY2019-Q2MaterialisedAnnual report
「Meanwhile, segment profit declined due to increases in manufacturing expenses, including energy costs and repair expenses.」
Increases in manufacturing expenses, including energy costs and repair expenses, actually occurred in the metal heat-treatment processing business, and segment profit declined 36.2% year on year. - FY2019-Q1MaterialisedAnnual report
「Meanwhile, operating profit declined year on year due to increases in manufacturing expenses, including energy costs and repair expenses. As a result of these business activities, revenue for the cumulative first quarter of the current consolidated fiscal year was ¥1,553 million, up 6.2% year on year, while operating profit was ¥77 million, down 34.2% year on year.」
The filing states that actual increases in manufacturing expenses, including energy costs and repair expenses, contributed to the 34.2% year-on-year decline in operating profit.