Cost increases and difficulty securing profits due to challenging manufacturing projects
First written in FY2018-Q2. 9 of 24 entries say "Materialised", first in FY2018-Q2. Latest entry: FY2027-H1.
Zuiko moved to the "Worse" side of this theme in 2017, 6 years before the typical company in this theme (2023).
1 other company's latest entry also says "Mitigated".
- FY2027-H1MitigatedAnnual report
「The impact of higher costs caused by delivery delays for new product projects incorporating higher value-added functions, which has continued from the previous fiscal year, has largely subsided as of the end of the interim consolidated accounting period.」
It states that the impact since the previous fiscal year of higher costs caused by delivery delays for new product projects incorporating higher value-added functions had largely subsided as of the end of the interim period. - 2026-04-03MaterialisedRevision of earnings forecasts
「Operating profit fell substantially from the initial forecast of ¥1,000 million because costs such as materials and labor increased as delivery schedules for projects involving new products with high value-added functions became longer than initially expected.」
The cost increases in materials, labor, and other items caused by longer delivery schedules for high-value-added new-product projects materialized as a downside to the operating profit forecast. - FY2025MaterialisedAnnual report
「The cost ratio rose sharply as the Company pursued higher value-added products, which increased the number of highly challenging projects, and recorded an impairment loss after conservatively assessing the saleability of inventories held by overseas subsidiaries, among other factors.」
It states that the increase in highly challenging projects accompanying the shift toward higher value-added products led to a significant rise in the cost ratio and an operating loss of ¥307 million. - FY2025-H1RestatedAnnual report
「No new business or other risks arose during the current interim consolidated accounting period. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The company has reconfirmed that there have been no new developments or material changes regarding the risk of higher costs and difficulty securing profits from highly challenging manufacturing projects. - FY2025-Q1RestatedAnnual report
「During the three-month period ended [the current first 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 company has reconfirmed that there have been no new developments or material changes regarding the risk of higher costs and difficulty securing profits from highly challenging manufacturing projects. - FY2024MaterialisedAnnual report
「On the profit side, the Group continued working to improve profitability by promoting cost reductions across the Group. However, in addition to lower sales, the cost ratio increased during the cumulative first-quarter period due to additional modifications to highly challenging projects and other factors, resulting in operating income of ¥1,027 million, down 43.0% from the previous fiscal year.」
The disclosure states that additional modifications arose in highly challenging projects, leading to a higher cost ratio and a 43.0% year-on-year decline in operating income. - FY2024-Q3MitigatedAnnual report
「On the profit side, although the cost ratio increased during the cumulative first-quarter period due to additional modifications to highly challenging projects and other factors, the impact of additional modifications and other factors decreased from the second quarter onward and the cost ratio improved, resulting in operating income of ¥1,088 million, up 122.5% year on year.」
The disclosure states that the impact of additional modifications and other factors in highly challenging projects decreased from the second quarter onward and the cost ratio improved. Operating income for the cumulative third-quarter period was ¥1,088 million. - FY2024-Q2MitigatedAnnual report
「The cost ratio increased during the cumulative first-quarter period due to additional modifications to highly challenging projects and other factors. During the second-quarter consolidated accounting period, however, the impact of additional modifications and other factors decreased and the cost ratio improved, resulting in operating income of ¥211 million, compared with an operating loss of ¥449 million in the same quarter of the previous year.」
The disclosure states that the impact of additional modifications and other factors in highly challenging projects decreased and the cost ratio improved. Operating income replaced the operating loss reported in the same period of the previous year. - FY2024-Q1MaterialisedAnnual report
「Additional modifications to highly challenging projects increased the cost ratio, resulting in an operating loss of ¥361 million, compared with an operating loss of ¥222 million in the same quarter of the previous year.」
The disclosure states that additional modifications arose in highly challenging projects, increasing the cost ratio and resulting in an operating loss. - FY2023MitigatedAnnual report
「The Group is working to identify and contain the risk of production delays at an early stage, including by testing in advance the portions of ordered machinery that incorporate new development elements. It is also pursuing continuous improvements in schedule and cost management by standardizing common components and promoting the use of data and feedback through the introduction of a production management system.」
The disclosure specifies early identification and management improvements through advance testing, standardization of common components, a production management system, and data utilization in response to risks involving highly challenging projects, specification changes, production delays, and cost overruns. - FY2023-Q2RestatedAnnual report
「During the current second-quarter consolidated cumulative period, no new business or other risks arose. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The company has reconfirmed that there have been no new developments or material changes regarding the risk of higher costs and difficulty securing profits from highly challenging manufacturing projects. - FY2023-Q1RestatedAnnual report
「During the three-month period ended [the current first 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 company has reconfirmed that there have been no new developments or material changes regarding the risk of higher costs and difficulty securing profits from highly challenging manufacturing projects. - FY2022-Q3RestatedAnnual report
「During the current third-quarter consolidated cumulative period, no new business or other risks arose. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The company has reconfirmed that there have been no new developments or material changes regarding the risk of higher costs and difficulty securing profits from highly challenging manufacturing projects. - FY2021-Q3RestatedAnnual report
「During the current third-quarter consolidated cumulative period, no new business or other risks arose. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The company has reconfirmed that there have been no new developments or material changes regarding the risk of higher costs and difficulty securing profits from highly challenging manufacturing projects. - FY2020WorsenedAnnual report
「The Group received multiple orders for highly challenging development projects and succeeded in establishing new technologies. However, because the projects required considerable time to reach completion due to their high level of difficulty, among other factors, they put pressure on gross profit and did not lead to improved profit margins.」
The disclosure states that, while multiple orders and the establishment of new technologies represented progress on highly challenging projects, their prolonged duration put pressure on gross profit and did not lead to improved profit margins. - FY2020-Q3RestatedAnnual report
「During the current third-quarter consolidated cumulative period, no new business or other risks arose. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The company has reconfirmed that there have been no new developments or material changes regarding the risk of higher costs and difficulty securing profits from highly challenging manufacturing projects. - FY2020-Q2RestatedAnnual report
「During the current second-quarter consolidated cumulative period, no new business or other risks arose. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
The company has reconfirmed that there have been no new developments or material changes regarding the risk of higher costs and difficulty securing profits from highly challenging manufacturing projects. - FY2020-Q1MaterialisedAnnual report
「The Group newly began manufacturing machinery requiring advanced technology, but repeated trial and error in an effort to meet customers’ high requirements caused production costs to rise, making it difficult to secure profits.」
The disclosure states that, in manufacturing machinery requiring advanced technology, responding to customer requirements and repeated trial and error caused production costs to rise and made it difficult to secure profits. - FY2019DroppedAnnual report
「The Group will create added value by providing solutions from every angle, including new products and services, optimization of factory production systems, strengthening overseas sales capabilities, and the deployment of newly established sites.」
The performance explanation for the fiscal year does not explicitly address the cost and profit pressure caused by the high-technology manufacturing projects, extended construction periods, and specification changes described through the previous quarter. - FY2019-Q3MitigatedAnnual report
「The Company steadily advanced production activities while improving the impact on production processes of responses to specification changes and other factors that arose in the first half, and achieved a certain level of results.」
The disclosure states that the impact on production schedules from responses to specification changes and other factors arising in the first half was improved, indicating measures to address the impact on production schedules and costs that had actually arisen in the previous quarter. No specific improvement amount or achievement rate was provided. - FY2019-Q2MaterialisedAnnual report
「Factors affecting production schedules and costs arose in some projects, including responses to specification changes, higher raw material prices, and delivery delays.」
The disclosure states that responses to specification changes, higher raw material prices, and delivery delays actually arose in manufacturing projects as factors affecting production schedules and costs. Although production processes were reviewed and improved, the result fell below the initial plan. - FY2019-Q1MaterialisedAnnual report
「Costs required to establish the technology continued to arise in connection with manufacturing machinery projects requiring advanced technology that we have pursued since the previous fiscal year, putting pressure on profits.」
The disclosure states that costs to establish the technology continued to arise in connection with manufacturing machinery projects requiring advanced technology, putting pressure on profits. - FY2018-Q3MaterialisedAnnual report
「On the profit side, we actively pursued the development of new high-performance manufacturing machinery to meet customer needs. However, production costs exceeded initial expectations due to factors including an extended construction period, making it difficult to secure profits.」
The disclosure states that, in developing new high-performance manufacturing machinery, production costs exceeded initial expectations due to factors including an extended construction period, making it difficult to secure profits. - FY2018-Q2MaterialisedAnnual report
「On the profit side, we undertook challenging projects involving certain manufacturing machines, which resulted in manufacturing costs exceeding initial estimates and made it difficult to secure profits.」
The filing states that undertaking highly complex manufacturing projects caused manufacturing costs to exceed initial estimates and made it difficult to secure profits.