Market Contraction, Excessive Competition and Aging-Equipment Risk in the Steelmaking Business
First written in FY2017. 13 of 25 entries say "Worsened", first in FY2018-Q1. Latest entry: 2026-08-07.
Tve moved to the "Worse" side of this theme in 2021.
1 other company's latest entry also says "Worsened".
- 2026-08-07WorsenedResults
「製鋼事業は、前年同期に比し、主要顧客への売上が減少した結果、売上高は10億７百万円（前年同期比8.3％減）となり、セグメント利益は受注損失引当金の繰入があったことなどにより、82百万円の赤字（前年同期は28百万円の赤字）となり、赤字幅は拡大いたしました。」
製鋼事業の主要顧客向け売上減少と受注損失引当金の影響が、減収と赤字幅拡大として実績に現れた。 - FY2026-H1WorsenedAnnual report
「The steelmaking business reported revenue of ¥604 million, down 17.3% year on year, as sales to major customers declined from the same period of the previous year. The segment posted a loss of ¥48 million, compared with a loss of ¥2 million in the same period of the previous year, owing in part to the provision for loss on orders received, and the loss widened.」
Lower sales to major customers and the recognition of a provision for order losses caused lower revenue and a wider loss in the steelmaking business to reappear in the results, worsening market, customer-base and profitability risks. - 2026-05-11WorsenedResults
「製鋼事業は、前年同期に比し、主要顧客への売上が減少した結果、売上高は６億４百万円（前年同期比17.3％減）となり」
主要顧客向け売上の減少と赤字幅拡大により、製鋼事業の市場・採算リスクの影響が強まった。 - FY2025MitigatedAnnual report
「In the steelmaking business, revenue from water treatment equipment-related products was recognized compared with the same period of the previous year, and sales to major customers remained strong. As a result, revenue was ¥1,471 million, up 20.8% year on year. Despite higher electricity unit prices and increased repair costs, the segment loss narrowed substantially to ¥41 million from ¥177 million in the same period of the previous year, supported by higher revenue and strong orders.」
The impact of the shrinking customer and market base and deteriorating profitability in the steelmaking business remains, but higher revenue and strong orders significantly narrowed the loss, partially mitigating the impact. - FY2024MitigatedAnnual report
「The steelmaking business reported revenue of ¥1,218 million, up 4.9% year on year, as sales to major customers remained strong compared with the same period of the previous year. The segment posted a loss of ¥177 million, compared with a loss of ¥181 million in the same period of the previous year. Although inventory accumulation was lower, the loss narrowed owing in part to lower material issue prices and electricity unit prices.」
Higher sales to major customers and lower material and electricity unit prices resulted in a slight narrowing of the loss in the steelmaking business. Market and profitability risks remain, but their impact was partially mitigated during the fiscal year. - FY2024-Q2Revenue increased, but the loss widenedAnnual report
「The steelmaking business reported revenue of ¥611 million, up 14.6% year on year, as sales to some customers increased from the same period of the previous year. However, the segment posted a loss of ¥121 million, compared with a loss of ¥107 million in the same period of the previous year, owing mainly to the lower accumulation of inventories, and the loss widened.」
Higher sales to some customers partially eased pressure on revenue, but the loss widened because inventory accumulation was limited and for other reasons. The change in market and customer-base risk is not regarded as a straightforward improvement. - FY2024-Q1MitigatedAnnual report
「The steelmaking business reported revenue of ¥345 million, up 58.8% year on year, as sales to some customers increased from the same period of the previous year. The segment posted a loss of ¥47 million, compared with a loss of ¥68 million in the same period of the previous year, owing mainly to the impact of higher sales, and the loss narrowed from the same period of the previous year.」
Higher sales to some customers resulted in higher revenue for the steelmaking business, and the loss also narrowed. The impact of deterioration in the market and customer base was partially mitigated, but the loss remains. - FY2023-Q3MitigatedAnnual report
「The steelmaking business reported revenue of ¥863 million, up 10.5% year on year, as sales to some customers increased from the same period of the previous year. The segment posted a loss of ¥131 million, compared with a loss of ¥237 million in the same period of the previous year. Despite higher electricity costs, soaring material procurement prices and other factors, the loss decreased owing mainly to the impact of increased inventories accompanying growth in the order backlog.」
Higher sales to some customers resulted in a 10.5% increase in revenue for the steelmaking business, and the loss also narrowed. The impact of deterioration in the market and customer base was partially mitigated in the quarter, but the loss and high material prices remain. - FY2023-Q1WorsenedAnnual report
「The steelmaking business reported revenue of ¥217 million, down 17.1% year on year, as sales to some customers declined from the same period of the previous year. However, due in part to lower manufacturing costs, the segment posted a loss of ¥68 million, compared with a loss of ¥83 million in the same period of the previous year.」
Lower sales to some customers resulted in a 17.1% decline in revenue, and weakness in the customer and market base of the steelmaking business continued. Meanwhile, the loss narrowed because of lower manufacturing costs. - FY2022-Q2WorsenedAnnual report
「As a result of strong orders and revenue from some customers, steelmaking revenue increased 31.3% year on year to ¥528 million. However, higher costs resulting from soaring purchase prices for some materials and other factors led to a segment loss of ¥144 million, compared with a loss of ¥98 million in the same period of the previous year.」
Despite higher revenue, the loss widened because of rising material procurement prices and other factors, and profitability in the steelmaking business continued to deteriorate. - FY2021WorsenedAnnual report
「The steelmaking business was affected by lower orders and revenue from major customers. Revenue was ¥913 million, down 21.5% year on year, and the segment loss was ¥231 million, compared with a loss of ¥148 million in the same period of the previous year.」
Lower orders from major customers became evident again in the form of lower revenue and a wider loss in the steelmaking business, and deterioration in the market and customer base progressed. - FY2021-Q3WorsenedAnnual report
「The steelmaking business was affected by lower orders and revenue from major customers. Revenue was ¥579 million, down 37.4% year on year, and the segment loss was ¥152 million, compared with a loss of ¥65 million in the same period of the previous year.」
Lower orders and sales from major customers became evident again, and the steelmaking business recorded a 37.4% decline in revenue, while the loss widened from ¥65 million to ¥152 million. - FY2021-Q2WorsenedAnnual report
「The steelmaking business was affected by lower orders and revenue from major customers. Revenue was ¥402 million, down 38.2% year on year, and the segment loss was ¥98 million, compared with a loss of ¥40 million in the same period of the previous year.」
Lower orders and sales from major customers became evident again, and the steelmaking business recorded a 38.2% decline in revenue, with the loss also widening. - FY2021-Q1WorsenedAnnual report
「The steelmaking business was affected by lower orders and revenue from major customers. Revenue was ¥224 million, down 22.5% year on year, and the segment loss was ¥48 million, compared with a loss of ¥29 million in the same period of the previous year.」
Lower orders and sales from major customers were reflected in the results, with revenue down 22.5% and the loss widening from ¥29 million to ¥48 million. Risks related to the shrinking customer base and market for the steelmaking business deteriorated again. - FY2020MitigatedAnnual report
「Outside the valve business, revenue in the steelmaking business increased as major customers shifted to domestic sourcing.」
The impact of lower demand in the steelmaking business was partially mitigated as major customers returned to domestic sourcing. Revenue increased 10.6%, while the segment loss narrowed from ¥212 million to ¥148 million. - FY2020-Q3MitigatedAnnual report
「In addition, revenue from the steelmaking business was ¥925 million, up 22.3% year on year, while the segment loss was ¥65 million, compared with a loss of ¥152 million in the same period of the previous year.」
The steelmaking business recorded higher revenue, and the loss narrowed significantly. The impact of lower demand resulting from major customers shifting production overseas and other factors was partially mitigated, as in the previous quarter and earlier periods. - FY2020-Q2MitigatedAnnual report
「Steelmaking revenue was ¥651 million, up 34.2% year on year, and the segment loss was ¥40 million, compared with a loss of ¥84 million in the same period of the previous year.」
The steelmaking business recorded higher revenue and a smaller segment loss, partially mitigating the impact of lower demand resulting from major customers shifting production overseas and other factors. - FY2019MitigatedAnnual report
「In businesses other than the Valve Business, revenue from the Steelmaking Business increased as a major customer switched to domestic procurement, while revenue from the Decontamination Business fell below the previous consolidated fiscal year as large-scale construction work was almost completed.」
The return of major customers that had shifted production overseas to domestic procurement resulted in steelmaking business net sales increasing 23.1% year on year. Although the risk of declining demand due to major customers’ overseas shift was partially mitigated, losses continued because of higher material costs. - FY2019-Q2MitigatedAnnual report
「The main reason for the increase in sales was that major customers that had shifted production overseas in the previous consolidated fiscal year switched their policy back to domestic production, among other factors, and the order backlog at the end of the second quarter of the current consolidated fiscal year also increased substantially.」
As major customers that had shifted production overseas continued to return to domestic production and the order backlog increased substantially, the risk of declining demand due to major customers’ overseas shift was partially mitigated. - FY2019-Q1MitigatedAnnual report
「This was mainly because major customers that had shifted production overseas in the previous consolidated fiscal year switched their policy back to domestic production, among other factors, and the order backlog at the end of the first quarter of the current consolidated fiscal year also increased substantially.」
As major customers that had shifted production overseas switched their policy back to domestic production and the order backlog increased substantially, the risk of declining demand in the steelmaking business due to major customers’ overseas shift was partially mitigated. - FY2018WorsenedAnnual report
「The steelmaking business had expected a substantial decline in revenue as major customers shifted procurement overseas. However, by pursuing new customer development and making highly marketable proposals, including difficult-to-manufacture and high-value-added products, the business worked intensively to expand sales and made a slight recovery from its initial plan, although net sales remained at ¥854 million, down 25.5% year on year,」
The shift by major customers to overseas procurement continued, and although the Company pursued new customers and high-value-added products as countermeasures, full-year net sales fell 25.5%, indicating continued deterioration in the market and customer base. - FY2018-Q3WorsenedAnnual report
「The steelmaking business was affected by some major customers shifting production overseas, resulting in a sharp change from the strong performance through the previous consolidated fiscal year. Revenue was ¥630 million, down 29.2% year on year, and the segment loss increased to ¥165 million from ¥112 million.」
The deterioration in the market and customer base of the steelmaking business resulting from major customers shifting production overseas continued to be reflected in lower revenue and widening losses. - FY2018-Q2WorsenedAnnual report
「The steelmaking business was affected by some major customers shifting production overseas, resulting in a complete change from the strong performance through the previous consolidated fiscal year. Net sales amounted to ¥420 million, down 33.9% year on year.」
The shift by major customers to overseas production continued to be reflected in the steelmaking business as lower revenue, which fell 33.9% year on year. - FY2018-Q1WorsenedAnnual report
「The steelmaking business was affected by some major customers shifting production overseas, resulting in a sharp change from the strong performance through the previous consolidated fiscal year. Revenue was ¥223 million, down 36.1% year on year, and the segment loss was ¥34 million, compared with a loss of ¥21 million in the same period of the previous year, resulting in lower revenue and profit.」
The shift by major customers to overseas production further deteriorated demand and the sales environment for the steelmaking business, and was reflected in performance as lower revenue and widening losses. - FY2017First statedAnnual report
「The outlook for the steelmaking business, one of the group's reporting segments, is highly uncertain. Although the company had sought to establish a relative competitive advantage through a survival strategy even as the domestic market continued to contract, earnings, which had grown steadily, are expected to reverse from the current consolidated fiscal year, with the medium-term outlook deteriorating to a level that could be described as a sharp decline.」
In addition to domestic market contraction, declining demand, excessive competition and falling market prices, the ageing of electric furnaces, power receiving equipment and other facilities was identified for the first time as a future issue for the steelmaking business.