Increase in Expenses Associated with Growth Strategy Investments
First written in FY2018. 3 of 4 entries say "Materialised", first in FY2019-Q1. Latest entry: FY2019-Q3.
Sakai Heavy Industries moved to the "Worse" side of this theme in 2018, 2 years before the typical company in this theme (2020).
The whole theme swung hardest in 2017: 6 of 22 companies on the "Worse" side.
8 other companies' latest entry also says "Materialised".
- FY2019-Q3MaterialisedAnnual report
「Japan: Total sales fell 17.2% from the same quarter of the previous year to ¥14,585,620 thousand as special demand related to emissions regulations and special demand from Africa subsided. Operating income fell 87.7% to ¥205,347 thousand as a result of lower sales and proactive policies.」
While pursuing proactive policies, the Japan segment's operating income fell 87.7% year on year as the loss of special demand coincided with lower sales. - FY2019-Q2MaterialisedAnnual report
「As a result of lower sales and aggressive business expansion, operating income decreased 26.9% year on year to ¥991.922 million, ordinary income decreased 30.5% to ¥862.695 million, and quarterly net income attributable to owners of the parent decreased 40.9% to ¥479.066 million.」
The burden of expenses associated with the aggressive business rollout coincided with lower sales, and downward pressure on performance materialized as declines in operating income, ordinary income and quarterly net income attributable to owners of the parent. - FY2019-Q1MaterialisedAnnual report
「On the profit front, operating income fell 1.3% from the same quarter of the previous year to ¥537,037 thousand, and ordinary income fell 1.9% to ¥497,598 thousand, due to an aggressive business rollout and higher strategic expenses. Quarterly net income attributable to owners of the parent remained at ¥203,278 thousand, down 32.3% year on year due to higher tax expenses and other factors.」
The aggressive business rollout and higher strategic expenses emerged as factors behind the decline in operating income, with higher expenses recorded as putting downward pressure on performance. - FY2018First statedAnnual report
「However, near-term pressure on the next period's performance is expected from the loss of special-demand sales, higher costs due to the stronger yen and fluctuations in material prices, and increased expenses associated with future growth-strategy investments.」
The company newly identified higher expenses associated with future growth-strategy investments as a source of pressure on performance in the next period.