Cost Reduction Through Production Leveling and In-House Component Production

「Our continuing cost-reduction efforts through expense reductions and productivity improvements, together with product price increases, proved effective. As a result, operating profit for the cumulative first quarter was ¥68 million, a significant increase from the same period of the previous year.」

「In terms of earnings, the company continued efforts to reduce costs through expense reductions and productivity improvements in response to soaring brass prices, higher prices for other materials and higher overhead expenses resulting from broad-based inflation. As a result, operating profit was ¥111 million, an improvement of 35.5% from the previous fiscal year.」

「In terms of earnings, the Company continued cost-reduction efforts through expense reductions and productivity improvements in response to sustained high brass prices, higher prices for other materials, and higher indirect costs due to broad-based inflation. As a result, operating income for the interim accounting period was ¥45 million, an improvement of 226.5% year on year.」

「In response to higher raw material prices caused by soaring brass prices and the weaker yen, as well as higher overhead expenses resulting from inflation, the company continued efforts to reduce costs through expense reductions and productivity improvements, and began to see results from the third quarter.」

「In terms of earnings, the company continued efforts to reduce costs through expense reductions and productivity improvements in response to higher raw material prices caused by soaring brass prices and the weaker yen, as well as higher overhead expenses resulting from inflation, but」

「The Company continued to face pressure on earnings from sustained high raw material prices and rising labor and outsourcing costs, but worked to reduce costs through production efficiency improvements and thorough expense reductions.」

「In terms of profit and loss, in the same period of the previous fiscal year, there were low-margin sales, mainly of brass valves, driven by rush demand at prices before the increases. These sales had been eliminated in the cumulative third quarter of the current fiscal year. The rise in raw material prices and various expenses due to persistently high material prices and inflation was absorbed through expense reductions and cost improvement efforts, resulting in an improved operating profit margin. As a result, for the cumulative third quarter, operating profit was ¥181 million, up 2.3% year on year, ordinary profit was ¥179 million, up 10.1%, and net profit for the quarter was ¥145 million, up 19.3%.」

「The increase in raw material prices due to the weaker yen and the rise in various expenses due to inflation were absorbed through other expense reductions and cost improvement efforts, resulting in an improved operating profit margin. As a result, for the cumulative second quarter, operating profit was ¥112 million, up 37.9% year on year, ordinary profit was ¥111 million, up 36.0%, and net profit for the quarter was ¥80 million, up 54.8%.」

「In terms of earnings, the same period of the previous year included low-margin sales, mainly of brass valves, driven by rush demand at prices before the increases. Those sales were absent this quarter. As a result, increases in raw material prices due to the weaker yen and higher indirect costs due to inflation were absorbed through other expense reductions and cost-improvement efforts, improving the operating margin.」

「In addition to thoroughly reducing expenses internally, we implemented price increases across products, including LP gas cylinder valves, and the entire company worked to secure an appropriate level of profit」

「In terms of earnings, raw material prices and indirect costs rose substantially. The Company thoroughly reduced internal expenses and raised prices across its products, including LP gas cylinder valves, as the entire organization worked to secure an appropriate level of profit.」

「We have continued efforts to reduce costs internally and improve management efficiency, but decided to raise product prices to cover increases in materials and other costs beyond what could be absorbed through management efforts.」

「We have continued efforts to reduce costs internally and improve management efficiency, but decided to raise product prices to cover increases in materials and other costs beyond what could be absorbed through management efforts.」

「We continue to work to reduce expenses and improve management efficiency, but for the cumulative first quarter, we recorded an operating loss of ¥14 million, compared with operating profit of ¥8 million in the same period of the previous year.」

「Factory operations were reduced through active temporary closures, causing inventories to decline substantially, by ¥610 million from the end of the previous fiscal year, which had a negative impact on profit and loss. However, while receiving employment adjustment subsidies, the company undertook substantial expense reductions throughout the organization, resulting in operating profit of ¥84 million, up 137.1% from the previous fiscal year, ordinary profit of ¥79 million, up 268.6%, and net profit of ¥45 million, up 748.2%.」

「In terms of profit and loss, although we actively implemented temporary closures as described above, we were able to increase product and merchandise sales slightly, and company-wide expense reduction efforts proved effective. As a result, operating profit improved substantially to ¥77 million, up 162.2% year on year, and ordinary profit to ¥77 million, up 274.6%.」

「In terms of profit and loss, although we actively implemented temporary closures as described above, we were able to increase product and merchandise sales slightly and worked to reduce expenses throughout the company. As a result, operating profit improved substantially to ¥38 million, up 78.2% year on year, and ordinary profit to ¥41 million, up 161.6%.」

「In terms of profit and loss, profitability deteriorated substantially because factory operations were reduced through temporary closures to prevent the spread of COVID-19. However, as a result of thoroughly strengthening expense reductions not only at the factory but also at headquarters and sales offices, operating profit was ¥8 million (compared with an operating loss of ¥5 million in the same period of the previous year), ordinary profit was ¥11 million (compared with an ordinary loss of ¥2 million), and net profit for the quarter was ¥3 million (compared with a net loss for the quarter of ¥5 million), maintaining profitability.」

「In parallel with developing these businesses, improving profitability through productivity gains and cost reductions is an important management issue for the company, and the entire company will focus on the following. ① Continue efforts to reduce manufacturing and selling, general and administrative expenses ② Reduce costs through overseas OEM production for unprofitable products ③ Continue reducing costs through in-house production of outsourced processing ④ Promote operational efficiency through the introduction of IoT and AI technologies」

「In terms of profit and loss, the increase in the depreciation burden for the new production line for LP gas cylinder valves completed in the previous fiscal year and the increase in freight and other various costs were substantial. To address these factors, we worked to reduce expenses by cutting factory consumables and expendable tools and reducing outsourcing costs through in-house production of parts, while also pursuing price increases for various products. As a result, operating profit was ¥29 million, up 246.8% year on year, and ordinary profit was ¥20 million, compared with ¥1 million in the same period of the previous year.」

「In terms of profit and loss, we worked to absorb the higher depreciation burden from the new production line for LP gas cylinder valves completed in the previous fiscal year and the increase in expenses resulting from higher freight and other various costs through reductions in factory consumables and expendable tools, lower outsourcing costs through in-house production of parts, productivity improvements through process changes, and price increases for LP gas cylinder valves and bulk accessories. As a result, operating profit was ¥21 million (compared with an operating loss of ¥0 million in the same period of the previous year), and ordinary profit was ¥15 million (compared with an ordinary loss of ¥7 million in the same period of the previous year).」

「In terms of earnings, during the current period we sought to absorb the higher expenses arising from depreciation of the new LP gas cylinder valve manufacturing line completed in the previous period, as well as increases in freight and other costs, through reductions in outsourcing costs from in-house production of components, productivity improvements from process changes, and price increases for bulk ancillary equipment. However, these measures had not yet taken full effect in the first quarter, resulting in an operating loss of ¥5 million, compared with operating income of ¥23 million in the same period of the previous year, an ordinary loss of ¥2 million, compared with ordinary income of ¥20 million, and a quarterly net loss of ¥5 million, compared with quarterly net income of ¥19 million.」

「As significantly improving profitability through productivity improvements and cost reduction measures is an urgent management issue, the entire company will focus on the following. ① Promote overseas OEM production for unprofitable products ② Improve productivity through continued process improvement activities and equipment upgrades ③ Expand value analysis proposals involving design changes ④ Reduce costs through in-house production of outsourced processing, using personnel made available by the operation of an integrated production line for LP gas cylinder valves」

「We are currently implementing the following initiatives to achieve these indicators. Accordingly, we will maintain the numerical targets as they are and work to achieve them as early as possible. ① Expand the low-temperature valve business centered on LNG and hydrogen ② Develop new businesses focused on food processing ③ Improve productivity and reduce costs through overseas OEM production, in-house production of outsourced processed parts, and strengthening the production control system」

「Although there are concerns that higher material costs will reduce profit margins going forward, we are advancing a review of the production control flow and productivity improvements through multiskilling to address this.」

「In terms of profit and loss, we are firmly continuing the cost reduction measures implemented since the previous fiscal year, including thorough level-loaded production aimed at maintaining and improving factory utilization and in-house production of parts.」

「Although the price of brass, the main raw material, rose from the second half of the current fiscal year, it remained on average below the previous fiscal year's level. Cost reduction measures, including thorough level-loaded production to maintain and improve factory utilization and the promotion of in-house production of parts, also proved effective and led to an improvement in profit. As a result, the gross profit margin improved by 3.5 percentage points, from 15.2% in the previous fiscal year to 18.7% in the current fiscal year,」

「In terms of profit and loss, the stabilization of brass prices, the main raw material, and the success of cost reduction measures, including level-loaded production from the current fiscal year to stabilize and improve factory utilization and in-house production of parts, led to an improvement in profit.」

「Various measures to reduce costs were implemented, including level-loaded production from the current fiscal year to stabilize and improve factory utilization, and efforts to promote in-house production of parts.」