High Dependence on the Automotive Industry and Demand Volatility

「中国の日系自動車ﾒｰｶｰの不振・減産、米州・欧州の量産案件終了等の影響があるも、為替の影響により増収。」

「In the CVJ axle business, sales to the OEM market decreased due to lower customer demand for automotive products.」

「In the CVJ axle business, sales to both the automotive aftermarket and automotive OEM customers decreased due to lower customer demand.」

「Meanwhile, profit improvement has stalled due to the slowdown in the shift to EVs and weak economic conditions in global markets. To respond to the rapidly changing business environment, the Company will ensure the pass-through to selling prices of cost increases, including material prices, that have continued since last year, while completing the production restructuring at an early stage to establish a stronger business foundation.」

「Sales were ¥422,789 million, up 15.0% year on year, mainly due to recovering customer demand. Despite efforts to pass through higher steel costs into selling prices, the Company posted an operating loss of ¥553 million, compared with an operating loss of ¥10,743 million in the year-earlier period.」

「Net sales were ¥274,999 million, up 16.2% year on year, due to the recovery in customer demand and other factors. Although the Company advanced the pass-through to selling prices of increases in steel prices, among other measures, operating results were an operating loss of ¥3,515 million, compared with an operating loss of ¥8,795 million in the same period of the previous year.」

「Net sales were ¥132,426 million, up 24.8% year on year, due to the recovery in customer demand and other factors. Although the Company advanced the pass-through to selling prices of increases in steel prices and fixed costs, among other measures, operating results were an operating loss of ¥4,131 million, compared with an operating loss of ¥6,638 million in the same period of the previous year.」

「Sales to the automotive market were ¥500,421 million, up 24.0% from the previous consolidated fiscal year, due to the recovery in customer demand and other factors. Although the Company advanced the pass-through to selling prices of increases in steel prices and fixed costs and was affected by scale, foreign exchange and other factors, operating results were an operating loss of ¥12,414 million, compared with an operating loss of ¥11,862 million in the previous consolidated fiscal year.」

「Net sales were ¥367,553 million, up 25.2% year on year, due to the recovery in customer demand and other factors. Although scale, foreign exchange and other factors had an impact on operating results, increases in steel prices and fixed costs have so far occurred ahead of the effect of price increases, resulting in an operating loss of ¥10,743 million, compared with an operating loss of ¥10,710 million in the same period of the previous year.」

「Net sales were ¥236,726 million, up 24.2% year on year, due to the recovery in customer demand and other factors. Although scale, foreign exchange and other factors had an impact on operating results, increases in steel prices and fixed costs have so far occurred ahead of the effect of price increases, resulting in an operating loss of ¥8,795 million, compared with an operating loss of ¥6,646 million in the same period of the previous year.」

「Net sales were ¥106,152 million, up 7.3% year on year, due to the recovery in customer demand and other factors. Although the Company passed on increases in steel prices and fixed costs to selling prices, among other measures, the increase in costs has so far occurred first, and operating results were an operating loss of ¥6,638 million, compared with an operating loss of ¥2,226 million in the same period of the previous year.」

「Net sales increased from the previous consolidated fiscal year, when customers repeatedly suspended operations due to the spread of COVID-19, to ¥403,722 million, up 9.3% from the previous consolidated fiscal year. However, the impact of lower customer production due to the semiconductor shortage was greater than initially expected. Despite the benefit of increased sales scale, operating results remained an operating loss of ¥11,862 million, as the increases in steel prices and fixed costs and the impact of lower customer production were greater than initially expected, compared with an operating loss of ¥12,397 million in the previous consolidated fiscal year.」

「Net sales increased from the same period of the previous year, when customers repeatedly suspended operations due to the spread of COVID-19, to ¥293,675 million, up 12.5% year on year. However, the impact of lower customer production due to the semiconductor shortage was greater than initially expected. Despite the benefit of increased sales scale, operating results remained an operating loss of ¥10,710 million, as the increases in fixed costs and the impact of lower customer production were greater than initially expected, compared with an operating loss of ¥13,012 million in the same period of the previous year.」

「Net sales increased from the same period of the previous year, when customers repeatedly suspended operations due to the spread of COVID-19, to ¥190,616 million, up 27.5% year on year. However, the impact of lower customer production due to the semiconductor shortage was greater than initially expected. Despite the benefit of increased sales scale, operating results remained an operating loss of ¥6,646 million, as the increases in fixed costs and the impact of lower customer production were greater than initially expected, compared with an operating loss of ¥13,230 million in the same period of the previous year.」

「Net sales increased from the same period of the previous year, when customers repeatedly suspended operations due to the spread of COVID-19, to ¥98,941 million, up 98.9% year on year. However, the impact of lower customer production due to the semiconductor shortage was greater than initially expected. Despite the benefit of increased sales scale, operating results remained an operating loss of ¥2,226 million, as the increases in fixed costs and the impact of lower customer production were greater than initially expected, compared with an operating loss of ¥9,618 million in the same period of the previous year.」

「Sales to the automotive market fell sharply to ¥369,501 million, down 15.5% from the previous consolidated fiscal year, due to lower demand resulting from customers suspending operations and other factors. Although the Company advanced fixed-cost reductions, operating results were an operating loss of ¥12,397 million due to the decline in sales scale and other factors.」

「Net sales fell sharply to ¥261,044 million, down 21.9% year on year, due to lower demand resulting from customers suspending operations and other factors. Although fixed costs declined, operating results were an operating loss of ¥13,012 million due to the decline in sales scale and other factors, compared with an operating loss of ¥2,467 million in the same period of the previous year.」

「Net sales fell sharply to ¥149,483 million, down 33.5% year on year, due to lower demand resulting from customers suspending operations and other factors. Although fixed costs declined, operating results were an operating loss of ¥13,230 million due to the decline in sales scale and other factors, compared with an operating loss of ¥895 million in the same period of the previous year.」

「Sales to the automotive market fell sharply to ¥49,739 million, down 56.9% year on year, due to lower demand resulting from customers suspending operations and other factors. Although fixed costs declined, operating results were an operating loss of ¥9,618 million due to the decline in sales scale and other factors, compared with operating profit of ¥121 million in the same period of the previous year.」

「Net sales were ¥333,890 million, down 9.9% year on year, due to lower customer demand and other factors. Although fixed costs declined, operating results were an operating loss of ¥2,625 million due to the decline in sales scale and other factors, compared with operating profit of ¥7,162 million in the same period of the previous year.」

「Net sales were ¥224,602 million, down 9.1% year on year, due to lower customer demand and other factors. Although fixed costs declined, operating results were an operating loss of ¥1,035 million due to the decline in sales scale and other factors, compared with operating profit of ¥5,886 million in the same period of the previous year.」

「Sales to the automotive market were ¥115,293 million, down 9.6% year on year, due to lower customer demand and other factors. Although fixed costs declined, operating profit was ¥120 million, down 97.4% year on year, due to the decline in sales scale and other factors.」

「Sales to the automotive market decreased due to lower customer demand associated with compliance with new emissions standards. Overall, net sales were ¥184,004 million, down 4.4% from the previous consolidated fiscal year, and segment profit was ¥954 million, down 65.9%, due to lower sales and higher steel prices.」

「Sales to the industrial machinery market increased, including sales to the aircraft industry, while sales to the automotive market decreased due to lower customer demand associated with compliance with new emissions standards. Overall, net sales were ¥136,287 million, down 1.4% year on year. Segment results were a loss of ¥202 million, compared with segment profit of ¥532 million in the same period of the previous year, due to lower sales and higher steel prices.」

「No new business or other risks arose during the cumulative second quarter of the current consolidated fiscal year, and there were no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」

「During the three-month period ended June 30, there were no new business risks or material changes to the business risks described in the securities report for the previous fiscal year.」

「No new business or other risks arose during the cumulative second quarter of the current consolidated fiscal year, and there were no material changes to the business or other risks described in the annual securities report for the previous fiscal year.」

「During the three-month period ended June 30, there were no new business risks or material changes to the business risks described in the securities report for the previous fiscal year.」

「Approximately half of sales in the bearing business are to the automotive industry. The constant-velocity joint business supplies components that transmit power to automobile drive wheels, and most of its sales are also to the automotive industry, resulting in a high degree of dependence on the automotive industry. The Group is also expanding sales of bearings and precision equipment products in the industrial machinery field and is pursuing measures with a constant focus on maintaining a balanced sales mix.」