Business Operation Risks Arising from Extraordinary Circumstances Such as COVID-19
First written in FY2020. 5 of 14 entries say "Materialised", first in FY2021-Q1. Latest entry: FY2024-Q2.
The whole theme swung hardest in 2020: 103 of 175 companies on the "Worse" side.
- FY2024-Q2MaterialisedAnnual report
「Against a backdrop of supply chain disruptions stemming from the global spread of COVID-19 and other factors, external factors such as changes in customers' operating and investment schedules affected the group's primarily project-based operations in the machine tool business. This resulted in delays in finalizing orders, delivery delays caused by semiconductor shortages and lower production capacity utilization, leading to higher cost ratios due to order losses and other factors.」
The impact of supply chain disruptions and other factors originating from COVID-19 actually appeared as changes to customers' investment schedules, delivery delays due to semiconductor shortages, lower production operating rates, lost orders and higher cost ratios. - FY2024-Q1MaterialisedAnnual report
「Against a backdrop of supply chain disruptions stemming from the global spread of COVID-19 and other factors, external factors such as changes in customers' operating and investment schedules affected the group's primarily project-based operations in the machine tool business. This resulted in delays in finalizing orders, delivery delays caused by semiconductor shortages and lower production capacity utilization, leading to higher cost ratios due to order losses and other factors.」
The impact of supply chain disruptions and other factors originating from COVID-19 continued to materialize as changes to customers' investment schedules, delivery delays due to semiconductor shortages, lower production operating rates and lost orders. - FY2023Increase in inquiries for machine tools following the end of the COVID-19 pandemicAnnual report
「In the machine tools business, inquiries have increased since January 2023 as the COVID-19 pandemic subsided, and a substantial increase in orders is expected going forward. In the transportation equipment business, sales at the domestic and Vietnamese subsidiaries increased, and operating profit of ¥61 million was recorded for the current consolidated fiscal year. Stable sales and profit are expected to continue, including with the start of production of new mass-produced automotive components.」
Regarding the impact of COVID-19 on business, the increase in inquiries for the machine tools business was attributed to the situation coming under control from January 2023. In the transportation equipment business, increased sales and operating profit of ¥61 million were reported. - FY2023-Q3Continued recovery in transportation equipment; increase in production and other metricsAnnual report
「During the cumulative period of the third quarter of the current consolidated fiscal year, the transportation equipment business showed a recovery from the impact of the spread of COVID-19, with substantial increases in production, orders received, order backlog and sales.」
The recovery from the impact of COVID-19 continued in the transportation equipment business, with substantial increases in production, orders received, order backlog and sales. - FY2023-Q1Recovery in transportation equipment alongside variant-related risksAnnual report
「In the transportation equipment business, domestic and overseas sales increased as the impact of COVID-19 subsided. Revenue was ¥361 million, up 29.6% year on year, and operating profit was ¥22 million, up 952.4% year on year.」
The transportation equipment business recovered from the impact of COVID-19, increasing sales and operating profit. Meanwhile, the risk of a renewed spread of infection due to new variants continued across the broader economy. - FY2022MaterialisedAnnual report
「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.」
The impact of supply constraints related to COVID-19 actually appeared in full-year results as higher costs for semiconductor substitutes in the machine tools business and increased costs associated with meeting delivery deadlines. - FY2022-Q3Continued recovery in transportation equipment; impact on machine tools from semiconductor shortagesAnnual report
「Although sales were on a recovery trend due to the impact of the spread of COVID-19, some machine tools were affected by production disruptions and other factors resulting from semiconductor supply shortages. Although it is difficult to determine when the situation will be brought under control or the extent of its impact, accounting estimates have been prepared on the assumption that the impact on the fiscal year ending March 2022 will be limited.」
Although sales were on a recovery trend, some machine tools were actually affected by production disruptions and other factors resulting from semiconductor supply shortages. The impact on the fiscal year ending March 2022 was assumed to be limited, but uncertainty remained regarding the timing of containment and the extent of the impact. - FY2022-Q2Continued recovery in transportation equipment; continued impact on machine toolsAnnual report
「Although transportation equipment sales were on a recovery trend due to the impact of the spread of COVID-19, the impact of customers reviewing their capital investment plans and other factors was significant in the machine tools business, and sales are expected to decline. Although it is difficult to determine when the situation will be brought under control or the extent of its impact, accounting estimates have been prepared on the assumption that the impact on the fiscal year ending March 2022 will be limited.」
Transportation equipment sales were said to be on a recovery trend, while the impact of customers reviewing their capital investment plans and other factors continued in the machine tools business. The impact on the fiscal year ending March 2022 was assumed to be limited, but the timing of containment and the extent of the impact were said to be uncertain. - FY2022-Q1Recovery in transportation equipment; continued impact on machine toolsAnnual report
「Although transportation equipment sales were on a recovery trend due to the impact of the spread of COVID-19, the impact of customers reviewing their capital investment plans and other factors was significant in the machine tools business, and sales are expected to decline. Although it is difficult to determine when the situation will be brought under control or the extent of its impact, accounting estimates have been prepared on the assumption that the impact on the fiscal year ending March 2022 will be limited.」
Transportation equipment sales were said to be on a recovery trend, while the impact of customers reviewing their capital investment plans and other factors continued in the machine tools business. The impact on the fiscal year ending March 2022 was assumed to be limited, but the timing of containment and the extent of the impact were said to be highly uncertain. - FY2021MaterialisedAnnual report
「Due to the impact of COVID-19, sales declined as customers reviewed or delayed their capital investment plans. In the transportation equipment business, although signs of a recovery were seen in the second half, sales declined at the company's domestic and Vietnamese subsidiaries,」
The impact of COVID-19 actually appeared in full-year results as revisions to and delays in capital investment plans in the machine tools business and declining sales in the transportation equipment business. The recovery in the second half was also noted. - FY2021-Q3RestatedAnnual report
「Due to the spread of COVID-19, sluggish sales of transportation equipment and delays resulting from customers reviewing their capital investment plans have occurred, and sales are expected to decline. Although it is difficult to determine when the situation will be brought under control or the extent of its impact, accounting estimates have been prepared on the assumption that the impact will continue throughout the fiscal year ending March 2021.」
The impact of COVID-19 was said to be continuing in the form of sluggish transportation equipment sales and revisions to and delays in capital investment plans for machine tools, and the assumption that the impact would continue throughout the fiscal year ending March 2021 was maintained. - FY2021-Q2WorsenedAnnual report
「Due to the spread of COVID-19, sluggish sales of transportation equipment and delays resulting from customers reviewing their capital investment plans have occurred, and sales are expected to decline. Although it is difficult to determine when the situation will be brought under control or the extent of its impact, accounting estimates have been prepared on the assumption that the impact will continue throughout the fiscal year ending March 2021.」
The impact of COVID-19 continued in the form of sluggish transportation equipment sales and revisions to and delays in capital investment plans for machine tools, and accounting estimates were prepared on the assumption that the impact would continue throughout the fiscal year ending March 2021. - FY2021-Q1MaterialisedAnnual report
「During the cumulative period of the first quarter of the current consolidated fiscal year, production, orders received and sales in the transportation equipment business declined due to the impact of COVID-19. The Group expects sales to decline due to automakers suspending operations and the stagnation of economic activity resulting from the spread of COVID-19. However, it expects a gradual recovery from the third quarter onward and has prepared its accounting estimates on the assumption that the impact on full-year earnings will be limited.」
COVID-19 actually reduced production, orders received and sales in the transportation equipment business, and accounting estimates were prepared on the assumption that automakers would suspend operations and economic activity would stagnate. A recovery from the third quarter onward was assumed, but the timing of containment was said to be highly uncertain. - FY2020First statedAnnual report
「If COVID-19 or other events occur on a scale exceeding expectations, the Group's financial position, operating results and cash flows may be affected if business operations become difficult. The Group has established employee conduct guidelines and communicated them thoroughly to all employees, setting out specific policies on temperature checks when reporting to work, precautions to be taken when reporting to work, procedures for receiving visitors and procedures for visiting customers. In an emergency, the Group will implement all available measures to prevent the spread of infection, including changes to work arrangements such as telework.」
The impact of COVID-19 and other factors on business operations and finances was described for the first time as an independent risk. Measures including conduct guidelines, temperature checks, procedures for visitors and customer visits, and telework were also presented. Because the disclosure stated that the Group had not been affected as of the fiscal year-end, realization of the risk itself was classified as false.