Earnings volatility due to dependence on the production equipment market and made-to-order production
First written in FY2017. 17 of 30 entries say "Mitigated", first in FY2018-Q2. Latest entry: FY2026.
The whole theme swung hardest in 2019: 13 of 26 companies on the "Worse" side.
13 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Orders received during the fiscal year were ¥17,133 million, up 88.2% year on year, while the order backlog at the end of the fiscal year was ¥11,457 million, up 123.6%.」
Despite the risk of performance fluctuations due to the variability of made-to-order production and customer capital investment, orders received and the order backlog increased substantially, and net sales and profits also grew. - FY2026-H1AdvancedAnnual report
「Against a backdrop of strong demand, order intake increased sharply and net sales also grew.」
Despite the risk of earnings volatility from make-to-order production and fluctuations in customers' capital investment, orders increased sharply on demand from the AI and data center markets. - FY2025Decline in the order backlog despite higher ordersAnnual report
「In addition, orders for the fiscal year amounted to ¥9,104 million, up 11.8% year on year, while order backlog at the end of the fiscal year stood at ¥5,124 million, down 4.4% year on year.」
Regarding the risk of earnings volatility from make-to-order production and fluctuations in customers' capital investment, orders increased while the order backlog at the end of the period declined. - FY2024MitigatedAnnual report
「Financial results for the current fiscal year showed increases in both revenue and profit compared with the previous fiscal year.」
Despite the risk of earnings volatility from make-to-order production and fluctuations in capital investment, the full year saw higher revenue and profit, improving from the effects seen in the previous fiscal year. - FY2024-Q3Higher revenue combined with lower operating profitAnnual report
「Against this backdrop, for the cumulative third quarter, net sales were ¥5,759 million, up 3.3% year on year, operating profit was ¥1,291 million, down 1.8%, ordinary profit was ¥1,384 million, up 2.6%, and net income was ¥972 million, up 0.6%.」
Although results were susceptible to make-to-order production and fluctuations in customers' capital investment, the company secured higher revenue and higher ordinary and net profit, while operating profit was below the level of the same period of the previous year. - FY2024-Q2MitigatedAnnual report
「Against this backdrop, for the cumulative second quarter, net sales were ¥4,105 million, up 6.7% year on year, operating profit was ¥1,012 million, up 5.1%, ordinary profit was ¥1,063 million, up 8.3%, and net income was ¥747 million, up 6.7%.」
Despite the risk of earnings volatility from make-to-order production and fluctuations in customers' capital investment, the six months ended the second quarter saw higher revenue and profit year on year, mitigating the impact from the previous quarter's lower revenue and profit. - FY2024-Q1WorsenedAnnual report
「Against this backdrop, for the cumulative first quarter, net sales were ¥1,380 million, down 3.3% year on year, operating profit was ¥232 million, down 8.2%, ordinary profit was ¥278 million, down 8.5%, and net income was ¥194 million, down 10.0%.」
Results, which are susceptible to the effects of make-to-order production and fluctuations in capital investment, saw lower revenue and profit year on year. - FY2023MitigatedAnnual report
「As a result, domestic revenue was ¥5,145 million, up 24.3% year on year, and overseas revenue was ¥2,685 million, up 18.6%, with overseas revenue accounting for 34.3%.」
Despite the risk of earnings volatility from make-to-order production and fluctuations in capital investment, both domestic and overseas revenue increased, improving full-year sales performance from the previous fiscal year. - FY2023-Q1MitigatedAnnual report
「As a result, for the cumulative first quarter, net sales were ¥1,427 million, up 31.5% year on year, operating profit was ¥253 million, up 377.3%, ordinary profit was ¥303 million, up 329.0%, and net income was ¥216 million, up 347.9%.」
Despite the risk of earnings volatility from make-to-order production and fluctuations in customers' capital investment, the three months ended the first quarter saw higher revenue and profit, improving results year on year. - FY2022MitigatedAnnual report
「In addition, orders for the fiscal year totaled ¥8,401 million, up 23.3% year on year, while the order backlog at the end of the fiscal year was ¥5,027 million, up 66.1%.」
Despite the risk of earnings volatility from make-to-order production and fluctuations in customers' capital investment, both orders and the order backlog increased substantially, and full-year results showed higher revenue and profit. - FY2022-Q3MitigatedAnnual report
「As a result, for the cumulative third quarter, net sales were ¥4,268 million, up 21.4% year on year, operating profit was ¥759 million, up 84.7%, ordinary profit was ¥839 million, up 87.0%, and net income was ¥584 million, up 81.2%.」
Despite the risk of earnings volatility from make-to-order production and fluctuations in customers' capital investment, the nine months ended the third quarter saw higher revenue and profit, mitigating the impact on results. - FY2022-Q2MitigatedAnnual report
「As a result, for the cumulative second quarter, net sales were ¥2,911 million, up 27.9% year on year, operating profit was ¥523 million, up 107.4%, ordinary profit was ¥548 million, up 108.9%, and net income was ¥381 million, up 99.8%.」
Despite the risk of earnings volatility from make-to-order production and fluctuations in customers' capital investment, the cumulative period ended in the current quarter saw higher revenue and profit, improving results year on year. - FY2022-Q1MitigatedAnnual report
「As a result, for the cumulative first quarter, net sales were ¥1,085 million, up 50.6% year on year, operating profit was ¥53 million, compared with an operating loss of ¥76 million in the same period of the previous year, ordinary profit was ¥70 million, compared with an ordinary loss of ¥78 million, and net income was ¥48 million, compared with a net loss of ¥51 million.」
Although make-to-order production and fluctuations in customers' capital investment had resulted in a loss in the same period of the previous year, revenue increased in the six months ended the first quarter and profit at each level returned to positive territory. - FY2021-Q3MaterialisedAnnual report
「As a result, for the cumulative third quarter, following the decline in orders in the second half of the previous fiscal year, net sales were ¥3,516 million, down 16.9% year on year, operating profit was ¥411 million, down 35.3%, ordinary profit was ¥449 million, down 29.3%, and net income was ¥322 million, down 28.4%.」
The earnings volatility from make-to-order production and fluctuations in customers' capital investment continued to appear in the results as lower revenue and profit, originating from the decline in orders in the second half of the previous fiscal year. - FY2021-Q2MaterialisedAnnual report
「Following the decline in orders in the second half of the previous fiscal year, net sales were ¥2,276 million, down 22.1% year on year, operating profit was ¥252 million, down 45.2%, ordinary profit was ¥262 million, down 44.3%, and net income was ¥191 million, down 44.1%.」
The risk of earnings volatility from make-to-order production and fluctuations in customers' capital investment materialized as lower revenue and profit for the six months ended the second quarter, originating from the decline in orders in the second half of the previous fiscal year. - FY2021-Q1MaterialisedAnnual report
「Revenue and profit at each level for the three months ended the first quarter remained weak following a decline in orders in the third quarter of the previous fiscal year. Revenue was ¥720 million, down 36.8% year on year; operating loss was ¥76 million, compared with operating profit of ¥118 million in the same period of the previous year; ordinary loss was ¥78 million, compared with ordinary profit of ¥122 million; and net loss for the quarter was ¥51 million, compared with net profit for the quarter of ¥88 million.」
The earnings volatility caused by make-to-order production and fluctuations in customers' capital investment again appeared in the first quarter as lower revenue and losses, originating from the decline in orders in the third quarter of the previous fiscal year. - FY2020MaterialisedAnnual report
「In addition, orders for the fiscal year amounted to ¥5,327 million, up 6.7% year on year, while order backlog at the end of the fiscal year stood at ¥1,534 million, down 26.1% year on year.」
The risk of earnings volatility from make-to-order production and fluctuations in customers' capital investment appeared in the current results as a combination of strong order intake and a substantial decline in the order backlog. - FY2020-Q2MitigatedAnnual report
「For the cumulative second quarter, net sales were ¥2,922 million, up 5.4% year on year, operating profit was ¥460 million, up 63.3%, ordinary profit was ¥471 million, up 80.0%, and net income was ¥341 million, up 84.5%.」
While fluctuations in customers' capital investment and make-to-order production had previously resulted in lower revenue and profit, the six months ended the second quarter saw higher revenue and profit. - FY2020-Q1MitigatedAnnual report
「For the cumulative first quarter, net sales were ¥1,141 million, up 3.6% year on year, operating profit was ¥118 million, up 433.4%, ordinary profit was ¥122 million, up 208.5%, and net income was ¥88 million, up 227.0%.」
Although make-to-order production and fluctuations in customers' capital investment had resulted in lower revenue and profit in the previous period, the current quarter saw higher revenue and profit, temporarily mitigating the impact on results. - FY2019MaterialisedAnnual report
「Operating results for the fiscal year declined in both revenue and profit from the previous fiscal year.」
The risk of earnings volatility from fluctuations in customers' capital investment and make-to-order production again appeared in the results as lower revenue and lower profit for the full year. - FY2019-Q3MitigatedAnnual report
「As a result, for the cumulative third quarter, net sales were ¥3,816 million, up 11.6% year on year, operating profit was ¥300 million, up 37.3%, ordinary profit was ¥306 million, up 44.6%, and net income was ¥212 million, up 45.0%.」
Against the risk of past losses and revenue declines caused by make-to-order production and fluctuations in customers' capital investment, the nine months ended the third quarter saw higher revenue and higher profit, and the impact has remained mitigated. - FY2019-Q2MitigatedAnnual report
「For the cumulative second quarter, net sales were ¥2,772 million, up 35.0% year on year, operating profit was ¥281 million, up 263.8%, ordinary profit was ¥262 million, up 262.0%, and net income was ¥185 million, up 279.2%.」
The risk of earnings volatility from make-to-order production and fluctuations in customers' capital investment had appeared as losses in the past, but the six months ended the second quarter saw higher revenue and higher profit. - FY2019-Q1MitigatedAnnual report
「For the cumulative first quarter, net sales were ¥1,101 million, up 69.8% year on year, operating profit was ¥22 million, compared with an operating loss of ¥144 million in the same period of the previous year, ordinary profit was ¥39 million, compared with an ordinary loss of ¥128 million, and net income was ¥26 million, compared with a net loss of ¥92 million.」
Fluctuations in results arising from make-to-order production and changes in customers' capital investment had appeared as losses in the past, but revenue increased in the current quarter and profit at each level returned to positive territory. - FY2018MitigatedAnnual report
「As a result, for the fiscal year, revenue was ¥5,466 million, up 74.9% year on year, operating profit was ¥638 million, compared with an operating loss of ¥279 million in the previous fiscal year, and ordinary profit was ¥642 million, compared with an ordinary loss of ¥214 million.」
Fluctuations in customers' capital investment and make-to-order production had resulted in lower revenue and losses in the previous fiscal year, but revenue increased in the current fiscal year and both operating profit and ordinary profit returned to positive territory. - FY2018-Q3MitigatedAnnual report
「As a result, for the cumulative third quarter, net sales were ¥3,418 million, up 44.8% year on year, operating profit was ¥218 million, compared with an operating loss of ¥231 million in the same period of the previous year, ordinary profit was ¥211 million, compared with an ordinary loss of ¥175 million, and net income was ¥146 million, compared with a net loss of ¥236 million.」
The fluctuations in sales timing associated with make-to-order production and in capital investment had resulted in lower revenue and losses in the previous period, but revenue increased and profit at each level returned to positive territory for the nine months ended the third quarter. - FY2018-Q2MitigatedAnnual report
「As a result, for the six months ended the second quarter, revenue was ¥2,053 million, up 19.4% year on year, and operating profit was ¥77 million, compared with an operating loss of ¥84 million in the same period of the previous year.」
The fluctuations in sales timing associated with make-to-order production had resulted in low revenue through the first quarter, but revenue increased for the six months ended the second quarter and operating profit returned to profitability. - FY2018-Q1MaterialisedAnnual report
「Meanwhile, first-quarter cumulative revenue remained low because the period began with an order backlog of ¥1,034 million at the end of the previous fiscal year.」
The gap between order timing and sales timing inherent in make-to-order production continued to be reflected in the quarter's low revenue. - FY2017First statedAnnual report
「As sales of equipment for production applications expanded, the company's results became more susceptible to fluctuations in customers' new capital investment. In addition, because production is make-to-order, sales timing fluctuates significantly between busy and slow periods, making the impact of revenue declines on results for individual periods more pronounced.」
The company identified as a standalone risk the significant impact that expanded sales of production equipment and make-to-order production have on results through fluctuations in customers' capital investment and sales timing, and this was reflected in lower revenue and a loss for the period.