Decline in demand for cold forging due to the customer’s shift to overseas production

「Although stagnant exports by customers were a downward pressure on automotive and industrial machinery components, production increases in response to the recovery of some demand in the latter half of the period resulted in performance at approximately the same level as in the same period of the previous year.」

「Some automotive components for China experienced production cuts. In industrial machinery components, substantial production cuts by major customers and continued inventory adjustments kept orders sluggish, causing results to fall significantly below those for the same period of the previous year.」

「The cold forging business is recognized as being susceptible to changes in customers’ management policies, such as moving production overseas to optimize procurement, as well as the effects of inventory adjustments.」

「The cold forging business is recognized as being susceptible to changes in customers’ management policies, such as moving production overseas to optimize procurement, as well as the effects of inventory adjustments.」

「The cold forging business is recognized as being susceptible to changes in customers’ management policies, such as moving production overseas to optimize procurement, as well as the effects of inventory adjustments.」

「Electric power tool parts and office equipment and industrial machinery parts exceeded the previous corresponding quarter's results due to the launch of production for new products and increased orders. Conversely, automotive parts underperformed due in part to the discontinuation of production of customers' core products. As a result, revenue declined 6.2% year on year to ¥1,187 million, and segment profit (operating profit) declined 49.7% to ¥47 million due to lower factory operating rates resulting from lower production volume.」

「Electric power tool parts and office equipment and industrial machinery parts exceeded the previous corresponding quarter's results due to the launch of production for new products and increased orders. Conversely, automotive parts underperformed due in part to the discontinuation of production of customers' core products. As a result, revenue declined 3.7% year on year to ¥800 million, and segment profit (operating profit) declined 44.1% to ¥31 million due to lower factory operating rates resulting from lower production volume.」

「Automotive components fell below the results for the same period of the previous year due to the discontinuation of production of customers’ core products and the movement of production overseas. As a result, net sales declined 6.7% year on year to ¥387 million, while segment profit (operating profit) declined 42.8% to ¥14 million.」

「The cold forging business is recognized as being susceptible to changes in customers’ management policies, such as moving production overseas to optimize procurement, as well as the effects of inventory adjustments.」

「Automotive parts sales were generated by new products, but the impact of lower sales of some products following the relocation of production overseas by customers was significant, causing the business to underperform the previous corresponding quarter. Office equipment and industrial machinery parts also underperformed. As a result, revenue declined 11.8% year on year to ¥1,414 million, and segment profit (operating profit) declined 53.8% to ¥61 million.」

「Automotive components fell below the results for the same period of the previous year because domestic production declined as customers moved production overseas. Office equipment, industrial machinery and other components also fell below the results for the same period of the previous year. As a result, net sales declined 15.9% year on year to ¥1.039 billion, while segment profit (operating profit) declined 57.4% to ¥46 million due to lower sales.」

「Automotive components fell below the results for the same period of the previous year because domestic production declined as customers moved production overseas. Electric tool components and office equipment, industrial machinery and other components also fell below the results for the same period of the previous year. As a result, net sales declined 22.6% year on year to ¥665 million, while segment profit (operating profit) declined 76.7% to ¥17 million due to lower sales.」

「Automotive components and electric tool components fell below the results for the same period of the previous year because domestic production declined as customers moved production overseas. Office equipment, industrial machinery and other components also fell below the results for the same period of the previous year. As a result, net sales declined 22.5% year on year to ¥328 million.」

「Sales of certain products declined as customers moved production overseas, along with electric tool components, and both fell below the results for the same period of the previous year. As a result, net sales declined 10.1% year on year to ¥1.602 billion.」