Decline in production and orders for precision components due to customer inventory adjustments
First written in FY2020-Q1. 6 of 14 entries say "Mitigated", first in FY2022-Q1. Latest entry: FY2026.
Nhk Spring moved to the "Worse" side of this theme in 2026, 4 years after the typical company in this theme (2022).
The whole theme swung hardest in 2023: 9 of 16 companies on the "Worse" side.
2 other companies' latest entry also says "Other".
- FY2026Profit decline despite higher demand due to tariffs and fixed costsAnnual report
「In the Precision Components Business, sales volume of HDD mechanical components increased on higher demand for high-capacity HDDs for data centers. Sales also benefited from the inclusion of an Indian subsidiary in the scope of consolidation, bringing revenue to ¥105,612 million, up 3.5% year on year. Operating profit, however, declined 14.9% to ¥3,651 million due to higher fixed costs and the impact of tariffs, among other factors.」
Revenue increased on strong demand for high-capacity HDDs and the consolidation of an Indian subsidiary, while profit declined due to higher fixed costs and the impact of tariffs. - 2026-05-11WorsenedEarnings
「However, operating income fell 14.9% year on year to ¥3,651 million due to higher fixed costs and the impact of tariffs, among other factors.」
In the Precision Components business, sales volume increased, but operating income declined because of higher fixed costs and the impact of tariffs. - FY2026-H1Profit decline due to higher demand, tariffs and fixed costsAnnual report
「In the precision components business, sales volumes of HDD mechanical components increased due to higher demand for high-capacity HDDs for data centers, and sales also benefited from the consolidation of an Indian subsidiary. Sales were ¥50,812 million, up 2.0% year on year. However, operating profit decreased to ¥1,312 million, down 23.2%, due to the impact of front-loaded costs from additional U.S. tariffs and higher fixed costs.」
Although sales and volumes increased on strong demand for high-capacity HDDs and the consolidation of an Indian subsidiary, operating profit declined due to the upfront burden of additional US tariffs and higher fixed costs. - FY2025MitigatedAnnual report
「In the precision components business, demand for BEVs (Battery Electric Vehicles) reached a plateau in the automotive-related operations, while strong demand for HEVs (Hybrid Electric Vehicles) increased demand for the company's products. In the information and communications-related operations, volumes of HDD mechanical components increased as demand for high-capacity HDDs for data centers recovered.」
Strong HEV demand despite the plateau in BEV demand, together with the recovery in demand for high-capacity HDDs, resulted in a 7.9% year-on-year increase in sales and a 549.4% increase in operating profit in the precision components business. - FY2025-H1MitigatedAnnual report
「In the precision components business, demand for BEVs (Battery Electric Vehicles) reached a plateau in the automotive-related operations, while strong demand for HEVs (Hybrid Electric Vehicles) increased demand for the company's products. In the information and communications-related operations, volumes of HDD mechanical components increased as demand for high-capacity HDDs for data centers recovered. Sales were ¥49,830 million, up 9.6% year on year, and operating profit was ¥1,709 million, compared with an operating loss of ¥703 million in the same period of the previous year.」
In the automotive-related operations, demand for HEVs increased, while in the information and communications-related operations, demand for high-capacity HDDs recovered, raising product volumes and turning the precision components business from an operating loss to an operating profit. - FY2024-Q3MitigatedAnnual report
「In the precision components business, production in the automotive-related operations, which had declined due to shortages of semiconductors and other components, recovered, but the business was significantly affected by higher fixed costs, including utilities. In the information and communications-related operations, volumes decreased due to production adjustments by HDD manufacturers. As a result, sales were ¥117,181 million, down 5.1% year on year, and operating profit was ¥3,087 million, down 77.1%.」
Production in the automotive-related operations recovered from component supply shortages, narrowing the decline in precision components sales from 11.0% in the previous quarter to 5.1%, and the decline in operating profit from 93.4% to 77.1%. However, higher fixed costs and lower volumes due to production adjustments by HDD manufacturers continued. - FY2024-Q2WorsenedAnnual report
「In the precision components business, production in the automotive-related operations showed signs of recovery from production adjustments by automakers resulting from semiconductor supply shortages and other factors, but the business was significantly affected by higher fixed costs, including utilities. In the information and communications-related operations, volumes decreased due to production adjustments by HDD manufacturers. As a result, sales were ¥74,791 million, down 11.0% year on year, and operating profit was ¥644 million, down 93.4%.」
Although the automotive-related operations showed signs of recovery from production adjustments, higher fixed costs coincided with production adjustments by HDD manufacturers, widening the declines in sales and operating profit in the precision components business. - FY2024-Q1WorsenedAnnual report
「In the precision components business, production in the automotive-related operations showed signs of recovery from production adjustments by automakers resulting from semiconductor supply shortages and other factors, but the business was significantly affected by higher fixed costs, including utilities. In the information and communications-related operations, volumes decreased due to production adjustments by HDD manufacturers. Sales were ¥37,225 million, down 5.7% year on year, and operating profit was ¥482 million, down 88.5%.」
Although the automotive-related operations showed signs of recovery from production adjustments, higher fixed costs coincided with production adjustments by HDD manufacturers, resulting in lower sales and an 88.5% year-on-year decline in operating profit in the precision components business. - FY2023Shift to lower volumes due to semiconductor and HDD production adjustmentsAnnual report
「Sales declined because volumes decreased in the automotive-related operations due to production adjustments by automakers resulting from semiconductor supply shortages and other factors, and in the information and communications-related operations due to production adjustments by HDD manufacturers and other factors.」
The explanation of the main factors has shifted from lower volumes due to customer inventory adjustments to lower volumes due to production adjustments by automakers caused by semiconductor shortages and production adjustments by HDD manufacturers. - FY2022RestatedAnnual report
「In the automotive-related operations, sales increased as production recovered from the impact of the spread of COVID-19, despite the impact of semiconductor supply shortages and other factors, and HDD-related components remained firm.」
The business recovered from the lower volumes caused by customer inventory adjustments and other factors in the previous fiscal year, and the precision components business continued to report higher sales and profit, supported by a recovery in automobile production and firm HDD-related components. - FY2022-Q3MitigatedAnnual report
「In the precision components business, the automotive-related operations were affected by semiconductor supply shortages and other factors, as well as higher raw material prices and logistics costs, while demand for HDD suspensions remained strong in the information and communications-related operations. Sales were ¥119,187 million, compared with ¥95,896 million in the same period of the previous year, and operating profit was ¥14,488 million, up 244.2% year on year.」
Compared with the lower volumes of precision components due to customer inventory adjustments and other factors reported in the previous fiscal year, higher demand for HDD suspensions has continued to drive increases in sales and profit. - FY2022-Q2MitigatedAnnual report
「In the information and communications-related operations, demand for HDD suspensions remained strong. Sales were ¥77,358 million, compared with ¥56,984 million in the same period of the previous year, and operating profit was ¥8,679 million, compared with an operating loss of ¥297 million.」
In the precision components business, demand for HDD suspensions remained strong, resulting in higher sales, and operating profit returned to positive territory from the operating loss recorded in the same period of the previous year. - FY2022-Q1MitigatedAnnual report
「In the precision components business, the automotive-related operations remained firm due to an increase in automobile production, as in the suspension spring and seating businesses, while the information and communications-related operations remained firm due to stronger demand for HDD suspensions and other factors. Sales were ¥36,870 million, compared with ¥25,447 million in the same period of the previous year, and operating profit was ¥3,302 million, compared with an operating loss of ¥2,175 million.」
The precision components business, which had reported lower volumes due to customer inventory adjustments and other factors in the previous fiscal year, generated higher sales due to increased automobile production and demand for HDD suspensions, and operating profit returned to positive territory. - FY2020-Q1First statedAnnual report
「In the precision components business, sales were ¥34,182 million, down 13.7% year on year, and operating profit was ¥940 million, down 73.8%, due to lower volumes resulting from customer inventory adjustments and other factors.」
Lower volumes due to customer inventory adjustments and other factors resulted in actual declines in sales and operating profit in the precision components business. Production, orders received and order backlog also decreased year on year.