Intensifying Sales Competition Due to Declining Demand and Oversupply
First written in FY2016. 11 of 35 entries say "Worsened", first in FY2018-Q3. Latest entry: 2026-08-06.
Shibaura Machine moved to the "Worse" side of this theme in 2017, 2 years before the typical company in this theme (2019).
The whole theme swung hardest in 2026: 41 of 85 companies on the "Worse" side.
34 other companies' latest entry also says "Worsened".
- FY2026Machine tools recover; molding machine sales declineAnnual report
「As a result, the molding machine business as a whole recorded orders received of ¥7.5353 billion, up 0.2% from the previous consolidated fiscal year, with overseas sales accounting for 73.3%; sales of ¥9.8854 billion, down 27.9%, with overseas sales accounting for 80.0%; and operating profit of ¥273.9 million, down 80.6%.」
In the molding machine business, orders were flat, while sales declined 27.9% and operating profit declined 80.6%. Meanwhile, in the machine tool business, orders received increased 44.9%, sales increased 18.6% and operating profit increased 3.5-fold, indicating divergent demand. - FY2026-H1Recovery in some areas coexists with slowing EV-related demandAnnual report
「For extrusion molding machines, sales of separator film manufacturing equipment for lithium-ion batteries in China declined. Orders for optical applications and other uses in Japan also declined.」
While orders and sales increased in some businesses, including machine tools, sales of separator film manufacturing equipment for lithium-ion batteries in China and orders for optical applications in Japan declined, and demand continued to diverge. - FY2025WorsenedAnnual report
「For extrusion molding machines, sales of separator film manufacturing equipment for lithium-ion batteries in China increased substantially, while orders for optical applications in Japan increased. However, orders for separator film manufacturing equipment for lithium-ion batteries in China declined substantially due in part to slower growth in EV demand.」
Orders for separator film manufacturing equipment for China declined substantially against a backdrop of slower growth in EV demand. - FY2025-H1WorsenedAnnual report
「For extrusion molding machines, sales of separator film manufacturing equipment for lithium-ion batteries in China increased substantially, while orders for optical applications in Japan increased. However, orders for separator film manufacturing equipment for lithium-ion batteries in China declined substantially due in part to slower growth in EV demand.」
The report stated that orders for separator film manufacturing equipment for lithium-ion batteries for China declined substantially against a backdrop of slower growth in EV demand. - FY2024-Q3WorsenedAnnual report
「For extrusion molding machines, sales of separator film manufacturing equipment for lithium-ion batteries increased substantially in China, and demand remained high against a backdrop of forecasts for medium- to long-term growth in EVs. However, orders in China declined as specification decisions were taking longer during the transition to next-generation models designed to improve separator film productivity, amid concerns over excess production of EV batteries.」
The report stated that while demand related to EVs remained high, orders in China declined due to concerns over excess production of EV batteries and delays in determining specifications for next-generation models. - FY2024-Q2RestatedAnnual report
「Although demand related to EVs, renewable energy and improvements in labor productivity was expanding against a backdrop of accelerating global efforts to address social issues such as decarbonization, conditions remained challenging due in part to persistently high material and energy prices and economic stagnation in China, the United States and elsewhere.」
Continued coexistence of expanding demand related to EVs, renewable energy and improvements in labor productivity, and challenging conditions caused by persistently high material and energy prices and economic stagnation in China, the United States and elsewhere. - FY2024-Q1Continued recovery and economic stagnation in China and the United StatesAnnual report
「The economic environment surrounding the Group remained challenging due in part to persistently high material and energy prices and economic stagnation in China, the United States and elsewhere. Meanwhile, demand continued to expand in areas related to EVs, renewable energy and improvements in labor productivity, against a backdrop of accelerating global efforts to address social issues such as decarbonization.」
While conditions remained challenging due to economic stagnation in China, the United States and elsewhere, the report stated that demand related to EVs, renewable energy and improvements in labor productivity continued to expand. - FY2023-Q3Continued recovery and the impact of economic slowdowns in China and the United StatesAnnual report
「Although the economic environment surrounding the Group continued to show a recovery trend in demand for capital investment from the previous consolidated fiscal year, it was affected by lockdowns in China and economic slowdowns in China, the United States and elsewhere.」
While the recovery trend in demand for capital investment continued, the report also newly cited the impact of lockdowns in China and economic slowdowns in China, the United States and elsewhere, indicating the coexistence of recovery in the demand environment and downward pressures. - FY2023-Q2RestatedAnnual report
「Although the economic environment surrounding the Group was affected by lockdowns in China, demand for capital investment continued to recover from the previous consolidated fiscal year.」
Although China was affected by lockdowns, the recovery trend in demand for capital investment continued from the previous consolidated fiscal year. - FY2023-Q1Continued demand recovery and the impact of China's lockdownsAnnual report
「Although the economic environment surrounding the Group was affected by lockdowns in China, demand for capital investment continued to recover from the previous consolidated fiscal year.」
While the recovery trend in demand for capital investment continued, China was affected by lockdowns, indicating regional differences in the demand environment. - FY2022-Q3RestatedAnnual report
「Although business conditions differed by region and industry, demand for capital investment was recovering, particularly in Japan, North America and China.」
Although differences in business conditions by region and industry remained, the report continued to describe a recovery in demand for capital investment, particularly in Japan, North America and China. - FY2022-Q2MitigatedAnnual report
「Although business conditions differed by region and industry, demand for capital investment was recovering, particularly in Japan, North America and China.」
Although differences by region and industry remained, demand for capital investment was recovering, particularly in Japan, North America and China, and the impact of the risk of weaker demand was less severe than in the previous fiscal year. - FY2022-Q1Recovery in capital investment demand and regional differencesAnnual report
「In the machinery industry to which the Group belongs, business conditions differed by region and industry, although demand for capital investment was recovering, particularly in China and the United States.」
Although differences in business conditions by region and industry remained in the machinery industry, demand for capital investment was recovering, particularly in China and the United States. - FY2021-Q3Weak demand and partial recovery coexistAnnual report
「In the machinery industry to which the Group belongs, a cautious approach to capital investment continued both in Japan and overseas, although demand for capital investment recovered in some regions, including China and the United States.」
While reluctance to invest in capital equipment continued in Japan and overseas, demand recovery was seen in some regions, including China and the United States. - FY2021-Q2WorsenedAnnual report
「Orders received for the first six months of the current second quarter of the consolidated fiscal year were ¥3.0599 billion, down 42.5% year on year, as caution over capital investment emerged due in part to the spread of the novel coronavirus」
Caution over capital investment continued, resulting in a 42.5% year-on-year decline in total orders received. The impact of weaker demand was reflected more substantially in the figures than in the previous fiscal year. - FY2020WorsenedAnnual report
「Orders received for the consolidated fiscal year were ¥9.4224 billion, down 29.9% from the previous consolidated fiscal year, as caution over capital investment emerged due in part to the spread of the novel coronavirus」
Caution over capital investment intensified due in part to the spread of the novel coronavirus, resulting in a 29.9% year-on-year decline in total orders received. - FY2020-Q3WorsenedAnnual report
「Orders received for the first 9 months of the current consolidated fiscal year totaled ¥74.728 billion, down 25.7% year on year, while sales totaled ¥87.978 billion, up 2.6%.」
Against a backdrop of caution over capital investment, total orders received declined 25.7% year on year. While demand was weak for the automotive sector, including in China, some products, such as extrusion molding machines and precision machining equipment, remained firm, and demand continued to diverge. - FY2020-Q2Continued divergence in demand by product and regionAnnual report
「For injection molding machines, capital investment, mainly for the automotive sector in Japan and overseas, remained soft, resulting in declines in sales and orders. For extrusion molding machines, sales remained firm, mainly for pelletizers, food containers and optical sheet and film manufacturing equipment in Japan, as well as sheet and film manufacturing equipment for secondary batteries in China. Orders increased for sheet and film manufacturing equipment for secondary batteries in China. For machine tools, sales increased, mainly for industrial and construction machinery in Japan, aircraft in North America, and industrial machinery in China and Southeast Asia. Orders remained soft due to a decline in orders for industrial machinery in Japan.」
While weakness in demand, including capital investment for the automotive sector, continued, sales increased for some products and regions, including extrusion molding machines for secondary batteries in China and machine tools, and demand continued to diverge. - FY2020-Q1Softening and recovery in demand coexistAnnual report
「For injection molding machines, capital investment, mainly for the automotive sector in Japan and overseas, turned soft, resulting in declines in sales and orders. For die-casting machines, sales remained firm for the automotive sector in Japan, North America and Southeast Asia, while orders were limited to continued demand from Southeast Asia. For extrusion molding machines, sales increased, mainly for pelletizers, food containers and optical sheet and film manufacturing equipment in Japan. Orders declined as demand adjustments continued for sheet and film manufacturing equipment for secondary batteries in China.」
While weakness continued in capital investment for the automotive sector and in demand for secondary batteries in China, sales increased or remained firm for some products and regions, and demand continued to diverge. - FY2019Continued divergence in demand by productAnnual report
「Sales of injection molding machines remained firm, mainly for the automotive sector in North America, Southeast Asia and India, while sales in Japan and China remained soft.」
Sales trends diverged by region and product for molding machines. For machine tools, orders received increased 29.5%, while the operating loss narrowed from ¥1.13 billion to ¥129 million, indicating that demand trends are diverging by product and region. - FY2019-Q3Demand diverges by productAnnual report
「With customers remaining cautious about capital investment, orders for the nine months ended 31 December totaled ¥100.628 billion, down 1.5% year on year, while revenue totaled ¥85.758 billion, up 0.7%.」
While caution over capital investment was reflected in a 1.5% year-on-year decline in total orders received, orders and sales increased in some businesses, including machine tools, indicating that demand trends are diverging by product and region. - FY2019-Q2MitigatedAnnual report
「Orders received for the machine tools business totaled ¥17.572 billion, up 66.9% year on year, net sales totaled ¥13.168 billion, up 12.4%, and operating loss totaled ¥369 million, compared with an operating loss of ¥757 million in the same period of the previous year.」
Orders received and net sales for machine tools increased, and the operating loss narrowed from ¥757 million in the same period of the previous year to ¥369 million. The effects of declining demand remain, but have eased from the previous period. - FY2019-Q1Orders and sales recover, but losses continueAnnual report
「Orders received for the machine tools business totaled ¥8.23 billion, up 39.6% year on year, and net sales totaled ¥5.175 billion, up 9.4%. Operating loss totaled ¥682 million, as higher component prices worsened the cost ratio and delays in procuring components reduced production efficiency, compared with an operating loss of ¥675 million in the same period of the previous year.」
Although orders received and net sales for machine tools increased, operating loss continued due to higher component prices and procurement delays, widening slightly from the same period of the previous year. - FY2018WorsenedAnnual report
「As a result, orders received for the machine tools business totaled ¥24.186 billion, down 0.3% from the previous consolidated fiscal year, net sales totaled ¥23.708 billion, down 20.3%, and operating loss totaled ¥1.13 billion, compared with operating profit of ¥422 million in the previous year.」
Weak demand for large and specialized machine tools, along with weak demand from the North American energy and mining machinery sectors, was reflected in full-year results, with net sales down 20.3% and operating profit turning into an operating loss of ¥1.13 billion. - FY2018-Q3WorsenedAnnual report
「Orders began to reflect the results of initiatives targeting the automotive and aircraft markets, the Company's areas of focus, but capital investment in North America's energy sector and weak demand for mining machinery continued. As a result, net sales for the machine tools business totaled ¥16.925 billion, down 16.2% year on year, and operating loss totaled ¥1.019 billion, compared with operating profit of ¥121 million in the same period of the previous year.」
While the results of initiatives began to emerge in some markets, weak demand continued, with net sales in the machine tools business down 16.2% year on year and the operating loss widening to ¥1.019 billion. - FY2018-Q2MaterialisedAnnual report
「Demand for the large machines in which the Company specializes began to show signs of orders in some domestic and overseas markets, but overall demand remained weak. Sales to North America and South Korea for machining of machine components increased, but sales declined in other regions. As a result, net sales for the machine tools business totaled ¥11.719 billion, down 13.6% year on year, and operating loss totaled ¥757 million, compared with operating profit of ¥117 million in the same period of the previous year.」
While some markets began to show signs of orders, weak demand and sales for machine tools were reflected in actual results as lower net sales and an operating loss. - FY2018-Q1MaterialisedAnnual report
「As a result, net sales for the machine tools business totaled ¥4.729 billion, down 2.7% year on year, and operating loss totaled ¥675 million, compared with an operating loss of ¥166 million in the same period of the previous year.」
Weak demand and orders for machine tools were reflected in the quarter's results as lower net sales and a wider operating loss. - FY2017RestatedAnnual report
「In Japan, capital investment remained cautious, particularly among industries related to machining of machine components. Overseas, sales and orders also declined as investment restraint continued amid weakness in the US energy-related industries and China's economic slowdown. As a result, net sales for the machine tools business totaled ¥29.735 billion, down 10.9% year on year, and operating profit totaled ¥422 million, down 72.6%.」
Restraint on capital investment and declining demand in Japan and overseas continued to reduce full-year sales and orders, resulting in lower net sales and operating profit in the machine tools business. - FY2017-Q3MaterialisedAnnual report
「In Japan, capital investment remained cautious, particularly among industries related to machining of machine components. Overseas, sales and orders also declined as investment restraint continued amid weakness in the US energy-related industries and China's economic slowdown. As a result, net sales for the machine tools business totaled ¥20.2 billion, down 14.8% year on year, and operating profit totaled ¥121 million, down 87.8%.」
Restraint on capital investment and declining demand in Japan and overseas led to lower sales and orders in the machine tools business, reflected in declines in net sales and operating profit. - FY2017-Q2RestatedAnnual report
「During the six-month period ended [the current second quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
The disclosure explicitly states that there have been no material changes to existing business and other risks, including declining demand and sales competition. - FY2016First statedAnnual report
「Operating profit remained at ¥1.71 billion, down 55.6% from the previous consolidated fiscal year, as the effects of intensifying price competition continued.」
For the molding machine business, the disclosure identifies intensifying price competition as an actual factor behind the decline in profit.