Impact of a Downturn in Shipbuilding Demand on the Marine Seals Business
First written in FY2017. 13 of 26 entries say "Mitigated", first in FY2020-Q2. Latest entry: 2026-08-06.
The whole theme swung hardest in 2020: 5 of 14 companies on the "Worse" side.
3 other companies' latest entry also says "Restated".
- 2026-08-06RestatedRevision of earnings forecasts
「This business maintained strong performance, led by demand for newbuild vessels, and segment net sales rose 13.8% year on year to ¥5.469 billion.」
Continued strength in newbuild vessel demand means that the risk of performance being affected by a downturn in shipbuilding demand remains low. - FY2026MitigatedAnnual report
「This business maintained strong demand for both newbuild vessels and repairs, and segment net sales rose 7.9% year on year to ¥19.479 billion.」
Newbuild and repair demand continued to be strong, and the marine business reported higher revenue, weakening the risk of an impact on business performance from a decline in shipbuilding demand. - 2026-05-13MitigatedRevision of earnings forecasts
「This business maintained strong demand for both newbuild vessels and repairs, and segment net sales rose 7.9% year on year to ¥19.479 billion.」
Both newbuild vessel and repair demand remained strong, reducing the impact of a downturn in shipbuilding and repair demand. - FY2026-H1MitigatedAnnual report
「Demand for both newbuild vessels and repairs remained strong, and segment revenue was ¥9,483 million, up 11.0% year on year.」
Both newbuild and repair demand remained strong, and the marine business reported higher revenue, weakening the risk of an impact on business performance from a decline in shipbuilding demand. - FY2025MitigatedAnnual report
「In addition to robust newbuild demand, repair demand increased against a backdrop that included geopolitical issues. As a result, revenue in this segment was ¥18,047 million, up 20.4% year on year, and operating profit was ¥5,278 million, up 56.4% year on year.」
Both newbuild and repair demand were robust, and the marine business reported higher revenue and profit, weakening the impact of the decline in shipbuilding demand. - FY2025-H1MitigatedAnnual report
「As strong repair demand continued, segment revenue was ¥8,545 million, up 16.9% year on year, and operating profit was ¥2,620 million, up 68.1%.」
Revenue and profit increased due to continued strong repair demand, weakening the impact of a decline in shipbuilding and repair demand on business performance during the first half. - FY2024Higher newbuild demand and an outlook for lower repair demand in EuropeAnnual report
「In fiscal 2024, strong newbuild market conditions are expected to continue, particularly for container ships and LNG carriers bound for China, while repair demand in Europe is expected to decline.」
Higher newbuild demand and continued strength in the market coexist with an outlook for lower repair demand in Europe. - FY2024-Q3Higher newbuild demand coexisting with lower repair demand in EuropeAnnual report
「Although repair demand in Europe declined, increased demand for newbuild vessels in Japan, China and South Korea resulted in segment revenue of ¥11,052 million, up 11.2% year on year, and operating profit of ¥2,248 million, up 2.2%.」
Although business performance improved in terms of both revenue and profit due to higher newbuild demand in Japan, China and South Korea, repair demand in Europe declined, indicating that trends in the shipbuilding and repair markets are not uniform. - FY2024-Q2MitigatedAnnual report
「As demand for newbuild vessels in China increased and repair demand in Europe continued, segment revenue was ¥7,311 million, up 12.2% year on year, and operating profit was ¥1,558 million, up 3.8%.」
Revenue and profit increased due to higher newbuild demand in China and continued repair demand in Europe, weakening the impact of the decline in shipbuilding demand on business performance. - FY2024-Q1MitigatedAnnual report
「As demand for newbuild vessels in China increased and repair demand in Europe continued, segment revenue was ¥3,598 million, up 9.9% year on year, and operating profit was ¥839 million, down 3.0%.」
Revenue increased due to higher newbuild demand in China and continued repair demand in Europe, weakening the impact of the decline in shipbuilding demand on business performance. - FY2023-Q3MitigatedAnnual report
「As the newbuild vessel markets for China and South Korea remained strong and demand for repair parts increased in Europe, segment revenue was ¥9,940 million, up 18.6% year on year, and operating profit was ¥2,201 million, up 34.8%.」
Revenue and profit increased due to strong newbuild market conditions in China and South Korea and increased demand for repair parts in Europe, weakening the impact of the decline in shipbuilding demand on business performance. - FY2023-Q2MitigatedAnnual report
「As the newbuild vessel markets for China and South Korea remained strong and demand for repair parts increased in Japan and Europe, segment revenue was ¥6,517 million, up 23.0% year on year, and operating profit was ¥1,501 million, up 55.7%.」
The impact of the decline in shipbuilding demand on business performance weakened due to strong newbuild market conditions in China and South Korea and increased demand for repair parts in Japan and Europe. - FY2022WorsenedAnnual report
「In fiscal 2022, a decline in newbuild vessel projects from the previous year and a downturn in regular repair demand are expected.」
Although a recovery in newbuild market conditions and demand for repair parts was indicated during the year, the risk to the outlook for shipbuilding demand has increased due to expectations of lower newbuild projects and scheduled repair demand in the following year. - FY2022-Q3MitigatedAnnual report
「As the newbuild vessel markets in China and South Korea recovered and demand for repair parts increased in Europe and Southeast Asia, segment revenue was ¥8,382 million, up 6.3% year on year, and operating profit was ¥1,633 million, up 12.9%.」
The disclosure cites a recovery in newbuild market conditions in China and South Korea and increased demand for repair parts in Europe and Southeast Asia in relation to the impact of the decline in shipbuilding demand, indicating that the risk has weakened. - FY2022-Q2RestatedAnnual report
「Although sales of repair parts declined, improved margins on sales for newbuild vessels and other factors resulted in segment revenue of ¥5,298 million, down 0.1% year on year. Operating profit was ¥964 million, up 14.2%.」
Although no recovery in newbuild demand itself is described, operating profit increased due to improved profitability on sales for newbuild vessels, and no significant change is indicated in the risk perception regarding the decline in shipbuilding demand. - FY2022-Q1RestatedAnnual report
「This business was affected by sluggish newbuild demand.」
Sluggish newbuild demand continues to be cited, with no substantive change in the risk perception regarding the decline in shipbuilding demand. - FY2021-Q3RestatedAnnual report
「Operating profit was ¥1,446 million, up 46.8% year on year, due mainly to improved profitability on sales for newbuild vessels.」
Profit increased due to improved profitability on sales for newbuild vessels, but no recovery in newbuild demand itself is described, and no significant change is indicated in the risk perception regarding the outlook for shipbuilding demand. - FY2021-Q2RestatedAnnual report
「Although sales of repair parts declined, improved margins on sales for newbuild vessels and other factors resulted in segment revenue of ¥5,306 million, unchanged year on year, and operating profit of ¥844 million, up 51.9%.」
Although no recovery in newbuild demand itself is indicated, operating profit increased due to improved profitability on sales for newbuild vessels. Revenue was roughly unchanged from the same period of the previous year, and uncertainty surrounding the decline in shipbuilding demand remains. - FY2021-Q1MitigatedAnnual report
「In addition to the smooth shipment of previously booked newbuild vessels, demand for repair parts also increased. As a result, segment revenue was ¥2,744 million, up 3.4% year on year, and operating profit was ¥514 million, up 150.6%.」
Although this was not a recovery in newbuild demand itself, the marine business reported higher revenue and profit due to shipments from past orders and increased repair demand, weakening the impact of the decline in shipbuilding demand on business performance during the quarter. - FY2020RestatedAnnual report
「Oversupply of vessel capacity has continued in the shipping and shipbuilding markets, causing the number of newbuild vessels constructed to stagnate and sales to fall below the initial plan. Meanwhile, after-sales service and repair demand generated earnings in line with the plan due to the timing of vessels' periodic inspections.」
Although stagnation in newbuild construction and uncertainty about the outlook remain, the disclosure indicates that earnings are being secured through after-sales service and repair demand. - FY2020-Q3MitigatedAnnual report
「In addition to the recovery in demand for repair parts, demand for new ships also entered a gradual recovery trend. As a result, segment revenue was ¥8,122 million, up 15.5% year on year, and operating profit was ¥985 million, up 81.6%.」
The recovery trend in newbuild demand and the recovery in demand for repair parts are both cited, weakening the risk of an impact on business performance from a decline in shipbuilding demand. - FY2020-Q2MitigatedAnnual report
「This business benefited from newbuild demand bottoming out and repair parts returning to a gradual recovery trend.」
Previously sluggish newbuild demand is considered to have bottomed out, while repair parts have returned to a gradual recovery trend, weakening the wording of the shipbuilding demand risk. - FY2020-Q1RestatedAnnual report
「Although demand for newbuild vessels remains sluggish, repair parts are on a gradual recovery trend,」
Although newbuild demand remains sluggish, repair parts are considered to be on a recovery trend, and no substantive shift toward deterioration or improvement in the shipbuilding demand risk is indicated. - FY2019SoftenedAnnual report
「Sales for newbuild vessels had been sluggish for several years, but bottomed out in 2017 and are expected to recover gradually going forward.」
Although sluggish newbuild demand remains evident in the results, it is considered to have bottomed out in 2017 and is expected to recover gradually, indicating that the risk wording has weakened. - FY2019-Q1MaterialisedAnnual report
「Demand for newbuild vessels remained sluggish, and repair demand also stagnated in Europe.」
A risk previously described as the possibility of a future decline in shipbuilding demand has materialized in actual business performance as sluggish newbuild demand and weak repair demand in Europe. - FY2017First statedAnnual report
「If a decline in shipbuilding demand or other such event occurs, this could affect our Group's business performance.」
While positioning the marine seal business as a key business, the potential impact of a decline in shipbuilding demand on business performance is explicitly identified as a risk.