Productivity Improvement, Cost Reduction and Operational Efficiency

「In the transportation equipment business, sales by the Company and its Vietnamese subsidiary increased, resulting in net sales of ¥338 million, up 2.2% year on year. However, in terms of profitability, rising personnel and raw material costs, including costs associated with securing personnel, resulted in an operating loss of ¥0 million, compared with operating income of ¥9 million in the same period of the previous year.」

「In the machine tools business, companies continued to take a cautious stance toward capital investment, resulting in lower sales of special-purpose machine tools. Net sales amounted to ¥882 million, down 44.8% year on year, and operating loss amounted to ¥323 million, compared with an operating loss of ¥31 million in the same period of the previous year.」

「In the machine tools business, sales of special-purpose machine tools declined, resulting in net sales of ¥578 million, down 32.1% year on year. In addition, additional costs arose from specification changes on some projects, resulting in an operating loss of ¥124 million, compared with operating profit of ¥25 million in the same period of the previous year.」

「In the machine tools business, we pursued proactive sales activities without limiting ourselves to a particular industry. As a result, sales of special-purpose machine tools increased and net sales amounted to ¥1,598 million, up 30.5% year on year. However, additional costs were incurred to address delivery delays on some special-purpose machine tools ordered from a new industry, resulting in an operating loss of ¥31 million, compared with an operating loss of ¥77 million in the same period of the previous year.」

「To resolve the relevant event or circumstances, our Group significantly improved profitability through measures including increasing revenue by passing higher raw material and purchase prices through to the prices of some products sold, reducing executive compensation and management bonuses, reducing fixed costs through appropriate staffing and redeployment, and reducing losses on orders by improving the accuracy of cost management. As a result, we achieved a return to operating profitability in the fourth quarter of the previous consolidated fiscal year and the first half of the current consolidated fiscal year, and business performance is recovering steadily.」

「To resolve the relevant event or circumstances, our Group significantly improved profitability through measures including increasing revenue by passing higher raw material and purchase prices through to the prices of some products sold, reducing executive compensation and management bonuses, reducing fixed costs through appropriate staffing and redeployment, and reducing losses on orders by improving the accuracy of cost management. As a result, we achieved a return to operating profitability in the fourth quarter of the current consolidated fiscal year.」

「In the machine tools business, although orders received increased, net sales remained broadly in line with the same period of the previous year at ¥828 million, up 5.5% year on year. Although measures such as expense reductions narrowed the loss, operating loss amounted to ¥67 million, compared with an operating loss of ¥205 million in the same period of the previous year.」

「In the machine tools business, net sales amounted to ¥570 million, broadly in line with the same period of the previous year and down 3.5% year on year. Although measures such as expense reductions narrowed the loss, operating loss amounted to ¥59 million, compared with an operating loss of ¥142 million in the same period of the previous year.」

「Our Group will implement various measures, including reducing fixed costs, to resolve the relevant event or circumstances.」

「In terms of profit, in the core machine tools business, operating loss amounted to ¥228 million, compared with an operating loss of ¥239 million in the same period of the previous year, as a result of accepting orders that were difficult to make profitable in order to secure operating capacity, in addition to delays in delivery due to semiconductor shortages and the resulting increase in internal labor hours.」

「In terms of profit, operating loss amounted to ¥154 million, compared with an operating loss of ¥170 million in the same period of the previous year, and ordinary loss amounted to ¥140 million, compared with an ordinary loss of ¥162 million, due to sluggish sales in the core machine tools business and costs arising from the procurement of substitute products amid semiconductor shortages. Net loss attributable to owners of the parent amounted to ¥150 million, compared with a net loss attributable to owners of the parent of ¥80 million in the same period of the previous year.」

「In the machine tools business, the impact of customers' revised capital investment plans due to COVID-19 remained significant, as in the same period of the previous year. Net sales amounted to ¥590 million, down 13.5% year on year, and operating loss amounted to ¥142 million, compared with an operating loss of ¥129 million in the same period of the previous year.」

「In terms of profit, in the core machine tools business, operating loss amounted to ¥239 million, compared with an operating loss of ¥375 million in the same period of the previous year, due to the impact of higher costs from procuring substitute products amid semiconductor shortages and increased labor and outsourcing costs associated with meeting delivery deadlines.」

「In terms of profit, although the business was on a recovery trend, sales remained sluggish and a full-scale recovery was not achieved. In addition, costs increased due to the procurement of substitute products amid semiconductor shortages, resulting in an operating loss of ¥170 million, compared with an operating loss of ¥374 million in the same period of the previous year.」

「In the machine tools business, sales were maintained at approximately the same level as in the same period of the previous year, and net sales amounted to ¥433 million, up 1.3% year on year. However, operating loss amounted to ¥64 million, compared with an operating loss of ¥41 million in the same period of the previous year.」

「In terms of profit, operating loss amounted to ¥375 million, compared with operating profit of ¥129 million in the same period of the previous year, due to the increased burden of fixed costs resulting from lower net sales and the impact of responding to customer demands for cost reductions on projects in the machine tools business.」

「In terms of profit, the Group implemented various cost-reduction activities, including improving the efficiency of processing operations and optimizing personnel allocation. However, operating profit amounted to ¥129 million, down 56.5% year on year, due to additional labor costs, outsourced processing costs, and other expenses arising from the concentration of large-scale projects.」

「In addition to higher net sales, operating profit amounted to ¥297 million, up 233.7% year on year, as a result of various cost-reduction activities, including a review of production processes and optimal personnel allocation.」

「In the machine tools business, sales of special-purpose machine tools increased, resulting in net sales of ¥1,203 million, up 3.4% year on year. As a result of cost-reduction activities aimed at improving productivity, operating profit amounted to ¥57 million, up 48.4% year on year.」

「As a result of initiatives including the development of proposal-based sales activities that accurately address customer needs, personnel reinforcement to accommodate short delivery times, and cost reduction through in-house production and higher productivity, net sales for the current consolidated fiscal year amounted to ¥3,065 million, up 7.8% year on year, while operating profit amounted to ¥89 million, up 9.9% year on year.」

「In terms of profit, productivity improved and expenses were reduced through cost-reduction activities and other measures, but operating profit amounted to ¥48 million, down 57.6% year on year. Due in part to the recognition of foreign exchange losses, ordinary loss amounted to ¥55 million, compared with ordinary profit of ¥51 million in the same period of the previous year, and net loss attributable to owners of the parent amounted to ¥63 million, compared with net income attributable to owners of the parent of ¥8 million in the same period of the previous year.」

「In terms of profit, productivity improved and expenses were reduced through cost-reduction activities and other measures. As a result, operating profit amounted to ¥79 million, up 44.5% year on year.」

「In the manufacturing division, we worked as one company to improve business performance by reducing costs through productivity improvement and cost-reduction activities, and by improving efficiency through the promotion of improvement proposals, among other initiatives.」