Risk of Intensifying Competition and Declining Selling Prices
First written in FY2016. 2 of 6 entries say "Worsened", first in FY2017. Latest entry: FY2027-H1.
Kitagawa moved to the "Worse" side of this theme in 2017, 2 years before the typical company in this theme (2019).
The whole theme swung hardest in 2026: 37 of 87 companies on the "Worse" side.
19 other companies' latest entry also says "Mitigated".
- FY2027-H1MitigatedAnnual report
「Segment profit (operating profit) was ¥369 million, up 87.8% year on year, due to higher sales and revisions to selling prices in response to increases in purchase prices and other costs.」
The company revised selling prices in response to higher purchase prices and other costs, and segment profit in the Machine Tools business increased 87.8% year on year. The response to pricing pressure has been reflected in profit. - FY2026MaterialisedAnnual report
「Segment income (operating income), meanwhile, was ¥221 million, down 48.3% year on year, owing to lower domestic sales, price competition in overseas markets and temporary expenses associated with relocating a plant, among other factors.」
Pressure on profitability from intensifying competition and price competition has materialized in practice as a decline in profit in the Machine Tools business. - FY2026-H1RestatedAnnual report
「Meanwhile, conditions in the agricultural and construction machinery industries remain difficult in Europe and the United States.」
The company states that difficult conditions have continued in the agricultural and construction machinery-related markets in Europe and the United States. - FY2023WorsenedAnnual report
「Our group plans to respond by providing high-value-added products, improving cost competitiveness through labor saving and greater efficiency, and continuing price negotiations. However, if selling prices decline, competitors strengthen their market competitiveness, and raw material and energy prices rise further, this could affect our group’s performance.」
In addition to constraints on competition and pricing power, the company explicitly identifies the risk that higher raw material and energy costs cannot be passed on sufficiently and immediately, expanding the factors that could affect performance. - FY2017WorsenedAnnual report
「This places serious pressure on our group’s ability to maintain profitability, and the pressure is expected to become particularly pronounced when markets stagnate.」
The pressure on maintaining profitability from competition and price negotiations is described more strongly than before as “serious pressure.” - FY2016First statedAnnual report
「Our group faces intense competition from other companies in the same industries in every market, placing it in a situation where it is difficult to set prices favorable to the group.」
The competitive environment and constraints on pricing power are described as placing pressure on the maintenance of profitability.