Mass-Production Launch Costs for New Models and New Technologies and New-Product Development Costs

「The segment loss was ¥972 million, a decline of ¥1,298 million from the same period of the previous year, due to the severe impact of losses associated with customers' production fluctuations, higher raw-material and energy market prices, higher temporary labor costs and higher costs of imported products resulting from foreign-exchange movements, as well as continuing losses in some areas associated with launching new vehicles and inefficiencies caused by production being concentrated on specific lines.」

「Revenue was ¥3,351.9 million, an increase of ¥309 million from the same period of the previous year, despite the impact of customers' production adjustments and other factors, due to the foreign-exchange impact of the weaker yen. The segment loss was ¥635 million, a decline of ¥1,250 million from the same period of the previous year, due to losses associated with customers' sharp production fluctuations, higher raw-material and energy costs, higher costs of imported products resulting from foreign-exchange movements, losses in launching new vehicles and other factors.」

「Although ongoing cost-reduction initiatives and expense-cutting measures were implemented, both operating profit and ordinary profit declined due to lower operating rates accompanying the decrease in sales and mass-production launch costs for new technologies.」

「In Japan, revenue was ¥2,435.1 million, an increase of ¥37 million from the same period of the previous year. Segment profit was ¥203.2 million, down ¥318 million from the same period of the previous year due to mass-production launch costs for new technologies, development costs for new products and other factors.」

「Although the company implemented continued cost reduction initiatives, expense cuts and other measures, operating income, ordinary income and quarterly net income attributable to owners of the parent all decreased due to lower sales, the costs of ramping up mass production of new technologies and new product development costs.」

「Operating profit at the TPR Group, excluding the ファルテックグループ, decreased by ¥3,823 million, or 19.5%, from the previous fiscal year to ¥1,577.9 million, despite ongoing cost-reduction initiatives and expense-cutting measures, due to higher raw-material prices, mass-production launch costs for new technologies, development costs for new products and other factors.」

「Although the company implemented continued cost reduction initiatives, expense cuts and other measures in addition to the production ramp-up effect from higher sales, operating income, ordinary income and quarterly net income attributable to owners of the parent all decreased due to higher raw material costs, the costs of ramping up mass production of new technologies, the slowdown in the China business and new product development costs.」

「Net sales were ¥43,276 million, an increase of ¥1,480 million from the same period of the previous fiscal year, due to higher sales of new products in Japan, including millimetre-wave radar covers and electrical components. Segment profit was ¥290 million, a decrease of ¥449 million from the same period of the previous fiscal year, due to preparation costs for new vehicle models in Japan and preparation costs for a newly established business in the United States.」

「Although we implemented ongoing cost-reduction initiatives and expense controls in addition to the benefits of increased production from higher sales, operating income, ordinary income and net income attributable to owners of the parent all declined because of higher raw-material costs, mass-production launch costs for new models and new technologies, and new-product development expenses.」