Profitability and Schedule Risks in Long-Term, Large-Scale Projects
First written in FY2016. 6 of 10 entries say "Materialised", first in FY2019-Q2. Latest entry: FY2026.
Nagaoka International moved to the "Worse" side of this theme in 2017, 4 years before the typical company in this theme (2021).
The whole theme swung hardest in 2020: 6 of 10 companies on the "Worse" side.
4 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「Some projects already received have been temporarily suspended due to the emergence of customers' financing problems and prolonged discussions between end users and process owners regarding specification changes after contract execution, and manufacturing at our company remains suspended.」
The previously identified schedule and profitability risks relating to long-term, large-scale projects materialized in the form of project suspensions and manufacturing stoppages caused by customer financing problems and prolonged discussions over specification changes. The project involving discussions over specification changes was completed by June 2026, and its restart has been decided. - FY2019-Q2MaterialisedAnnual report
「Damage from Typhoon No. 21 in September 2018 caused finished products to be flooded, and some projects failed to progress as planned due to the resulting remanufacturing and repair work.」
For energy-related projects, remanufacturing and repairs were required because finished products were flooded by a typhoon, and some projects did not progress as planned. - FY2017-Q3RestatedAnnual report
「Consequently, price competition remains extremely severe even for projects that have been awarded, and the Company has also lost a number of planned projects.」
The severity of price competition for awarded projects and the loss of planned projects continue to be observed. - FY2017-Q2WorsenedAnnual report
「Even for projects that have been awarded, price competition has been extremely severe, and there were also a number of cases in which the Company lost planned projects.」
In addition to pressure on the profitability of awarded projects, the Company has lost planned projects, indicating worsening project-profitability and order-intake risks. - FY2017-Q1RestatedAnnual report
「The Company is pursuing negotiations for new projects and projects whose plans have been postponed, while capturing demand for equipment upgrades in Asia, the Middle East and Europe, but severe price competition continues.」
The Company reports that negotiations for postponed projects are continuing and price competition remains severe, with project delays and profitability risks continuing. - FY2016First statedAnnual report
「Manufacturing of screens and internals and other activities in the Group's energy-related business may involve long-term, large-scale projects, and unforeseen circumstances may arise during such projects.」
The risks identified include schedule delays, failure to achieve target margins, customer postponements, cancellations or specification changes, and repair costs and damages.