Weak machine-tool orders and declining capital investment
First written in FY2017-Q2. 12 of 29 entries say "Mitigated", first in FY2017-Q3. Latest entry: FY2027-H1.
Kitagawa moved to the "Worse" side of this theme in 2019, the same year as the typical company in this theme.
The whole theme swung hardest in 2019: 10 of 15 companies on the "Worse" side.
7 other companies' latest entry also says "Mitigated".
- FY2027-H1MitigatedAnnual report
「In Japan, sales of chucks and cylinders increased against a backdrop of rising demand for lathes and other factors. Overseas sales also increased to ¥5,447 million, up 12.7% year on year, as adoption by target customers progressed.」
The machine-equipment business has recorded stronger domestic demand for lathes and growing adoption by target customers overseas, indicating an improvement from the previous risk of weak demand. - 2026-04-17AdvancedGovernance
「The committee deliberates in response to consultations from the Board of Directors and reports its findings to the Board.」
In addition to the former advisory and reporting functions of the Outside Directors' Committee concerning the nomination of director candidates, the Company is establishing a Nomination and Compensation Committee to deliberate and report on the selection and recommendation, dismissal and renomination, and compensation of directors and delegated executive officers. - FY2026-H1RestatedAnnual report
「In the machine-tool industry, domestic capital investment continues to lack strength, while overseas demand, particularly in Asia, remains firm.」
The company continues to describe a situation in which domestic capital investment in the machine-tool industry lacks strength, while overseas demand, particularly in Asia, remains firm. - FY2025-H1Continued firm conditions but a lack of strengthAnnual report
「Machine-tool orders have remained firm, but the market continues to lack the strength to drive overall growth.」
Although machine-tool orders are described as firm, they lack the strength to drive overall growth, while weak domestic demand and cautious capital investment in Europe and North America continue. - FY2024-Q3WorsenedAnnual report
「The machine-tool industry has generally lacked strength. Domestic market conditions remain weak as capital investment in semiconductor manufacturing equipment and automotive-related equipment continues to be sluggish. Overseas demand in Europe and the US showed signs of capital investment, while the Chinese market took a cautious stance toward capital investment due to uncertainty about the outlook amid the economic slowdown.」
Following the previous quarter's descriptions of market contraction and weakness, the company states that the machine-tool industry as a whole lacks strength, with weak domestic demand and cautious capital investment in China continuing. - FY2024-Q2RestatedAnnual report
「The machine-tool industry is contracting due to a lull in capital investment related to electric vehicles (EVs) and the impact of the economic slowdown. Domestic market conditions remain weak, with capital investment in semiconductor manufacturing equipment and automotive-related equipment continuing to be sluggish. Overseas demand also showed stronger signs of a slowdown due to the economic downturn in China and constraints on capital investment caused by globally higher interest rates.」
The machine-tool market has continued to contract and remain weak, due to a lull in EV-related investment, China's economic slowdown and constraints on capital investment caused by globally higher interest rates. - FY2024-Q1WorsenedAnnual report
「The machine tool industry is gradually contracting as demand for capital investment reaches a peak. Domestic demand for capital investment by general industrial machinery manufacturers, which had remained strong, is beginning to slow. External demand is also strong for automotive and IT-related capital investment, particularly in India, but the overall slowdown has intensified partly because of the economic downturn in China.」
Although the machine-tool market had recovered to above pre-pandemic levels, capital investment demand peaked out, and signs of a slowdown intensified overall in both domestic and overseas markets. - FY2023MitigatedAnnual report
「Overall market conditions in the machine tool industry remained strong in both domestic and external demand, driven by rising global semiconductor demand, the effects of subsidies in Japan and increased demand for EV-related investment overseas, and recovered to levels above those preceding the pandemic.」
The machine-tool market performed well in both domestic and overseas markets and recovered to levels above those before the COVID-19 pandemic. - FY2023-Q3RestatedAnnual report
「The machine-tool industry recovered overall to pre-pandemic levels. Domestic demand showed signs of stagnation in capital investment for automobile production, but remained firm across manufacturing as a whole, partly due to the effects of subsidies. Overseas demand also remained firm, despite downside risks from China's lockdowns and zero-COVID policy, the situation in Ukraine and global monetary tightening, supported by the strong machine-tool industry.」
The machine-tool market recovered to pre-pandemic levels, with both domestic and overseas demand remaining firm, while downside risks such as China's lockdowns continued to be cited. - FY2023-Q2MitigatedAnnual report
「The machine-tool industry was affected by delays in procuring materials, but overall market conditions recovered to pre-pandemic levels and remained strong.」
Although the impact on production from delays in procuring materials remains, the machine-tool market recovered to pre-pandemic levels and performed well. - FY2022-Q3MitigatedAnnual report
「In the machine-tool-related industry, the overall market remained on a recovery track. Domestic demand remained firm as capital investment demand related to semiconductors increased despite higher raw-material prices and difficulties in procuring materials. Overseas demand in China showed signs of stagnation, but capital investment demand related to automobiles was generally trending higher, and strong appetite for capital investment in Europe and the US kept those markets performing well.」
The machine-tool market remained on a recovery track, supported by stronger domestic semiconductor-related demand, automotive capital investment and capital investment appetite in Europe and the US. The Chinese market, however, showed signs of stagnation. - FY2022-Q2On a recovery track but broadly flatAnnual report
「In the machine-tool-related industry, the overall market remained on a recovery track but was broadly flat. Domestic demand remained firm despite higher raw-material prices and difficulties in procuring materials, supported by increased semiconductor-related demand. Overseas demand in China showed signs of a pause due to semiconductor shortages and a lull in capital investment in electronic equipment such as PCs and tablets, while markets in Europe and the US remained strong.」
The machine-tool market remained on a recovery track but was broadly flat overall. The Chinese market showed signs of a pause, while domestic semiconductor-related demand and the European and US markets remained firm or strong. - FY2022-Q1MitigatedAnnual report
「In the machine-tool-related industry, the overall market remained on a recovery track as the economic recovery progressed. Domestic demand recovered gradually despite concerns about the impact of the declaration of a state of emergency and semiconductor shortages, partly because the government's COVID-19 measures contributed to the recovery. Overseas demand benefited from vaccinations and economic stimulus measures, supporting continued aggressive capital investment and increased demand for semiconductors and automobiles.」
Overall machine-tool demand remained on a recovery track, with gradual recovery in domestic demand and increased overseas demand, particularly for semiconductors and automobiles. However, concerns about the impact of semiconductor shortages remained. - FY2021RestatedAnnual report
「In the machine-tool-related industry, difficult market conditions continued due to the impact of the US-China trade friction and the spread of COVID-19. Domestic demand showed signs of recovery, led by the automotive industry, but the overall outlook remained uncertain. Overseas demand continued to recover in China, while conditions remained difficult in Europe and North America, leaving the overall market at a low level.」
Although machine-tool demand showed signs of recovery in China and the automotive sector, the overall market, including Europe and North America, remained at a low level amid continued difficult conditions. - FY2021-Q3MitigatedAnnual report
「In the machine-tool-related industry, difficult market conditions have continued. Domestic demand has shown signs of a gradual recovery, led by semiconductors and automobiles, and overseas demand has continued to increase, led by China. However, the market as a whole remained at a low level, and uncertainty has persisted due to concerns about a downturn caused by the spread of COVID-19.」
Although machine-tool demand as a whole remained at a low level with downside risks, signs of recovery and growth emerged in domestic semiconductor and automotive demand and in overseas demand, particularly in China. - FY2021-Q2RestatedAnnual report
「In the machine-tool-related industry, difficult market conditions have continued due to the impact of COVID-19. Domestic demand for products used in semiconductor manufacturing equipment has grown steadily, but demand for products used in automobiles and general machinery has remained weak. Overseas demand in China has continued to recover, while Europe and North America remained at low levels, with no discernible movement toward recovery.」
Amid the impact of COVID-19, domestic demand for automobiles and general machinery and overseas demand in Europe and North America remained weak, while recovery or firm demand was seen in China and for semiconductor manufacturing equipment. - FY2021-Q1WorsenedAnnual report
「In the machine-tool-related industry, the spread of COVID-19 had a major impact on market conditions. Domestic demand fell sharply, led by the automotive industry. Overseas demand showed some signs of recovery as China took prompt measures to contain the spread of the disease, but orders declined substantially year on year. In Europe and the US, demand declined across various sectors, including aircraft.」
COVID-19 caused a sharp decline in domestic and overseas demand and orders, increasing the risk of weak machine-tool demand. - FY2020-Q3RestatedAnnual report
「In the machine-tool-related industry, capital investment in Japan and overseas has been trending lower due to the prolonged US-China trade friction. Domestic demand remained weak not only for automobiles, electrical equipment and precision machinery, but also for general machinery. Overseas demand also remained weak due to economic downturns in China, Europe and the US. However, semiconductor-related products such as electronic components showed signs of a gradual recovery as demand for fifth-generation mobile communications systems (5G) began to emerge.」
The company continues to cite weak capital investment and machine-tool demand in Japan and overseas, while also pointing to signs of a gradual recovery in semiconductor-related demand driven by 5G demand. - FY2020-Q2WorsenedAnnual report
「In the machine-tool industry, capital investment by manufacturers in Japan and overseas has been trending lower due to the prolonged US-China trade friction. In the automotive sector, sales have slowed, particularly in China, while a recovery in the semiconductor sector is expected during fiscal 2019, supported by demand for fifth-generation mobile communications systems. However, the outlook remains uncertain.」
The prolonged US-China trade friction has caused capital investment in Japan and overseas to trend lower, while automotive sales have also slowed, particularly in China. - FY2020-Q1WorsenedAnnual report
「In the machine-tool industry, uncertainty about the global economic outlook has intensified, and corporate capital investment has been trending lower both in Japan and overseas.」
As uncertainty about the global outlook intensified in the machine-tool industry, corporate capital investment declined in Japan and overseas. - FY2019-Q3WorsenedAnnual report
「Orders exceeded the year-earlier month for 22 consecutive months from December 2016, but in October they fell below the year-earlier month for the first time in 23 months, showing a slight downward trend. However, major sectors such as automobiles, electrical equipment and precision machinery continued to perform well.」
Cumulative machine-tool orders were up 2.8% year on year, but fell below the year-earlier month in October for the first time in 23 months, with a slight downward trend emerging. - FY2019-Q2MitigatedAnnual report
「Total machine-tool orders for April to September 2018 amounted to ¥916.3 billion, up 11.4% year on year, and exceeded the year-earlier month for 22 consecutive months since December 2016, remaining strong.」
Total machine-tool orders rose 11.4% year on year and exceeded the year-earlier month for 22 consecutive months, indicating that the risk of weak demand continued to ease. - FY2019-Q1MitigatedAnnual report
「Total machine-tool orders for April to June 2018 amounted to ¥471.6 billion, up 16.0% year on year, and exceeded the year-earlier month for 19 consecutive months since December 2016, clearly showing increased demand in both domestic and overseas markets, as in the previous fiscal year.」
Machine-tool orders rose 16.0% year on year and exceeded the year-earlier month for 19 consecutive months, further mitigating the risk of weak demand. - FY2018-Q3MitigatedAnnual report
「Total machine-tool orders for April to December 2017 amounted to ¥1,287.8 billion, up 38.2% year on year, and exceeded the year-earlier month for 13 consecutive months since December 2016. Monthly orders exceeded ¥150.0 billion for the first time in November and reached a record high for the second consecutive month.」
Total machine-tool orders rose 38.2% year on year and exceeded the year-earlier month for 13 consecutive months, showing further progress in mitigating the risk of weak demand. - FY2018-Q2MitigatedAnnual report
「Total machine-tool orders for April to September 2017 amounted to ¥822.8 billion, up 33.2% year on year, and exceeded the year-earlier month for 10 consecutive months since December 2016, remaining strong.」
Total machine-tool orders rose 33.2% year on year and exceeded the year-earlier month for 10 consecutive months, indicating that the risk of weak demand continued to ease. - FY2018-Q1MitigatedAnnual report
「Total machine-tool orders for April to June 2017 amounted to ¥406.5 billion, up 30.0% year on year, and exceeded the year-earlier month for 7 consecutive months since December 2016, remaining strong.」
Machine-tool orders rose 30.0% year on year and exceeded the year-earlier month for 7 consecutive months, further indicating a mitigation of the risk of weak demand. - FY2017AdvancedAnnual report
「However, during the fourth quarter, orders exceeded the year-earlier month in both domestic and overseas demand, making the recovery trend in demand more apparent.」
Total machine-tool orders for the full fiscal year were down 7.8% year on year, but in the fourth quarter both domestic and overseas orders exceeded the year-earlier month, strengthening signs of a recovery in demand. - FY2017-Q3MitigatedAnnual report
「Total machine-tool orders for April to December 2016 amounted to ¥931.6 billion, down 13.8% year on year. On a monthly basis, however, orders turned positive year on year in December for the first time in 17 months, since August 2015, suggesting signs of a recovery in demand despite the continuing lack of visibility.」
Although total machine-tool orders were down 13.8% year on year, they turned positive year on year in December for the first time in 17 months, indicating signs of a recovery in demand. - FY2017-Q2First statedAnnual report
「Total machine-tool orders from April to September 2016 were ¥617.9 billion, down 18.2% from the same period of the previous year. On a monthly basis, orders remained below the prior-year level for 14 consecutive months from August 2015, and stagnant conditions continued.」
The company reports an 18.2% year-on-year decline in total machine-tool orders and a year-on-year decline for 14 consecutive months.