Increase in Work in Process and Inventory Due to Electronic Component Shortages
First written in FY2022-Q3. 3 of 11 entries say "Materialised", first in FY2022. Latest entry: FY2026.
Takeuchi Mfg. moved to the "Worse" side of this theme in 2024, 2 years after the typical company in this theme (2022).
The whole theme swung hardest in 2022: 14 of 40 companies on the "Worse" side.
14 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「¥2,659 million in the previous consolidated fiscal year compared with ¥117 million in the current consolidated fiscal year」
The write-down related to excess inventory of components for battery-powered excavators declined sharply from ¥2,659 million in the previous fiscal year to ¥117 million. The impact of component procurement and inventory risks remains, but the loss amount has decreased. - FY2025MaterialisedAnnual report
「The write-down of raw material inventories resulted from sales of battery-powered excavators falling far below expectations, causing batteries and other related components procured in advance in anticipation of expanded sales to become excess inventory. Their book value was written down by ¥2,659 million.」
The component procurement issue actually resulted in excess inventory of batteries and other components for battery-powered excavators and a ¥2,659 million inventory write-down. - FY2025-H1MaterialisedAnnual report
「Regarding crawler loaders, production stalled during the second quarter due to defects in purchased components, causing some sales to be pushed into the third quarter. Demand for the products themselves remains strong.」
Problems with component procurement actually occurred in the form of defects in purchased components and a production slowdown in the second quarter, pushing some crawler loader sales into the third quarter. - FY2024ReframedAnnual report
「If procurement from suppliers becomes difficult for any reason and the Group's production activities are restricted, this may affect the Group's performance.」
The specific issue of increased work in process due to electronic component shortages was not separately disclosed this period and has instead been categorized as the broader supplier dependence and production restriction risk related to component procurement. - FY2024-Q1MitigatedAnnual report
「Of inventories, work in process decreased by ¥3,691 million to ¥11,655 million. This was mainly because some of the supply of electronic components improved, enabling work in process stored in Europe and North America to be sold to customers as finished products.」
The partial improvement in the supply of electronic components enabled work in process stored in Europe and North America to be sold as finished products, reducing work in process by ¥3,691 million. The impact of inventory accumulation due to supply shortages declined, but the improvement was limited. - FY2023WorsenedAnnual report
「Of inventories, work in process increased by ¥9,238 million to ¥15,346 million. This was mainly because the arrival of electronic components remained fluid, so unfinished work in process was shipped ahead of completion to enable the components to be installed locally, increasing local inventories. In addition, following the start of operations at the U.S. plant, crawler loaders that would be completed there began shipping from the head office plant as work in process.」
The fluid arrival of electronic components continued throughout the full year, and work in process increased by ¥9,238 million due to the advance shipment of unfinished work in process and other factors. - FY2023-Q3WorsenedAnnual report
「Of inventories, work in process increased by ¥11,286 million to ¥17,395 million. This was mainly because the arrival of electronic components remained fluid, so unfinished work in process was shipped ahead of completion to enable the components to be installed locally, increasing local inventories. In addition, crawler loaders that would be completed at the U.S. plant began shipping from the head office plant as work in process in line with the start of operations at the U.S. plant.」
Because the arrival of electronic components remained fluid, unfinished work in process was shipped ahead of completion, resulting in a ¥11,286 million increase in work in process. The impact of inventory accumulation due to component shortages continued. - FY2023-Q2WorsenedAnnual report
「During the first quarter, the supply of electronic components increased temporarily, and work in process stored in Europe and North America was sold to customers as finished products, reducing the work-in-process balance. During the second quarter, however, the supply of electronic components declined again, and the work-in-process balance began to increase.」
The supply of electronic components, which had temporarily improved in the first quarter, declined again, and the work-in-process balance began to increase. Work in process increased by ¥2,078 million from the end of the previous consolidated fiscal year, and inventory accumulation due to component shortages resurfaced. - FY2023-Q1MitigatedAnnual report
「Regarding the procurement of electronic components, as supply volumes began to increase, some of the work in process stored in Europe and North America was completed and sold immediately to customers.」
The supply of electronic components began to increase, enabling work in process stored in Europe and North America to be sold as finished products. Work in process declined by ¥2,340 million, reducing the impact of inventory accumulation caused by supply shortages. - FY2022MaterialisedAnnual report
「Of the increase in inventories, work in process increased by ¥4,870 million. This was mainly due to shortages of electronic components, but most of the work in process is local inventory stored in Europe and North America that is ready to be sold promptly as finished products once the supply of electronic components recovers.」
The shortage of electronic components continued to affect work in process throughout the full year, which increased by ¥4,870 million. - FY2022-Q3First statedAnnual report
「Of the increase in inventories, work in process increased by ¥6,062 million. This was mainly due to shortages of electronic components, but most of the work in process is local inventory stored in Europe and North America that is ready to be sold promptly as finished products once the supply of electronic components recovers.」
The shortage of electronic components actually resulted in an increase in work in process. Inventories increased by ¥11,305 million, and most of the work in process is stored in Europe and North America.