Strengthening Order-Winning Activities and Investing in Proposal Costs
First written in FY2018-Q2. 1 of 3 entries say "Restated". Latest entry: FY2021.
Toyo Engineering moved to the "Worse" side of this theme in 2021, the same year as the typical company in this theme.
1 other company's latest entry also says "Softened".
- FY2021SoftenedAnnual report
「Although lower construction revenue had a negative effect on profit, improvements in the results of several projects undertaken by overseas subsidiaries and control of proposal costs included in SG&A expenses resulted in operating profit of ¥1.6 billion, ¥1.1 billion above the initial forecast of ¥500 million.」
Previously, the increase in proposal costs associated with intensified order solicitation activities was cited, whereas in the current fiscal year, the reduction in proposal costs is cited as a factor contributing to profit improvement. - FY2018-Q3RestatedAnnual report
「Operating income (loss) was an operating loss of ¥23 billion, compared with an operating loss of ¥1.5 billion in the same quarter of the previous year. This reflected lower gross profit due to a decline in revenue, higher selling, general and administrative expenses due to more active proposal activities, and an expected ¥26.6 billion deterioration in the profitability of the U.S. ethylene production facility project from the outlook at the time of the second-quarter results.」
Proposal activities to strengthen order-taking activities continue to intensify and are cited as a factor behind the increase in selling, general and administrative expenses. - FY2018-Q2First statedAnnual report
「Operating profit was ¥1.9 billion, down 62.5% year on year, due to lower gross profit resulting from lower revenue than in the same quarter of the previous year, as well as higher selling, general and administrative expenses, including proposal costs, to strengthen order-winning activities.」
The company explicitly disclosed for the first time that it is incurring proposal-related and other costs to strengthen order-taking activities. The increase in expenses was explained as a factor behind the increase in selling, general and administrative expenses during the quarter.