Price Declines and Lower Profitability Due to Declining Demand and Oversupply
First written in FY2016. 16 of 30 entries say "Materialised", first in FY2017-Q1. Latest entry: FY2026-H1.
Hitachi moved to the "Worse" side of this theme in 2016, 3 years before the typical company in this theme (2019).
The whole theme swung hardest in 2020: 26 of 51 companies on the "Worse" side.
7 other companies' latest entry also says "Materialised".
- FY2026-H1MaterialisedAnnual report
「Revenue increased 5% year on year to ¥4.7874 trillion. Although there were negative factors such as lower revenue in the Connective Industries segment and other segments due to lower demand for new elevators in the Building Systems business, this was more than offset by higher revenue in the Energy segment resulting from the solid performance of the Power Grids business and higher revenue in the Mobility segment due to the effects of the acquisition of Thales S.A.'s railway signaling business during the previous interim consolidated accounting period and the solid performance of the signaling systems business.」
Lower demand for new elevators became evident as a factor behind lower revenue in Connective Industries. Overall, Group revenue increased 5% year on year due to higher revenue in Energy and Mobility. - FY2024-Q2SoftenedAnnual report
「For example, if the supply-demand balance deteriorates and market conditions weaken in markets such as information equipment, elevators and semiconductor products, this could adversely affect the Group's businesses, financial condition and results of operations.」
“Automotive equipment” was removed from the examples of risks related to a sharp decline in demand, changing the scope of the examples. - FY2024-Q1MitigatedAnnual report
「Overseas revenue decreased 11% year on year to ¥1.5181 trillion. Although there were positive factors including foreign exchange movements, higher revenue in the Green Energy & Mobility segment, including 日立エナジー社, where sales in North America increased, and higher revenue in the Automotive Systems segment due to the recovery in North American market conditions and the rebound from the impact of China's lockdowns, these were more than offset by lower revenue associated with the sale of part of the shares in 日立建機㈱ and the sale of shares in 日立金属㈱.」
The recovery in North American market conditions and the rebound from the impact of China's lockdowns alleviated the impact of weak demand and market conditions in some markets, including automotive-related markets. - FY2023-Q3MaterialisedAnnual report
「Revenue increased 17% year on year to ¥267.5 billion. Although there were negative factors such as lower demand centered on China and Russia/CIS, this reflected higher sales of new mining equipment and parts and services, as well as foreign exchange movements.」
At Hitachi Construction Machinery Co.,Ltd., lower demand centered on China and Russia/CIS continued to be evident as a factor behind lower revenue. However, revenue increased 17% year on year due to sales of new mining equipment, parts and services, and foreign exchange movements. - FY2023-Q1MaterialisedAnnual report
「Revenue increased 17% year on year to ¥267.5 billion. Although there were negative factors such as lower demand centered on China and Russia/CIS, this reflected higher sales of new mining equipment and parts and services, as well as foreign exchange movements.」
At Hitachi Construction Machinery Co.,Ltd., lower demand centered on China and Russia/CIS became evident as a factor behind lower revenue. Overall revenue increased due to sales of new mining equipment, parts and services, and foreign exchange movements. - FY2022-Q3MitigatedAnnual report
「Revenue increased 29% year on year to ¥720.3 billion, due to higher revenue resulting from the recovery in market conditions, price adjustments in the Americas, foreign exchange movements and other factors.」
At Hitachi Construction Machinery Co.,Ltd., revenue increased 29% year on year to ¥720.3 billion due to higher revenue resulting from the recovery in market conditions and other factors, alleviating the impact of weak-demand and weak-market-condition risk. - FY2022-Q2MitigatedAnnual report
「Revenue increased 34% year on year to ¥456.3 billion, due to higher revenue resulting from the recovery in market conditions for automotive products and other factors.」
At 日立金属, the recovery in market conditions for automotive products and other products resulted in a 34% year-on-year increase in revenue to ¥456.3 billion, alleviating the impact of lower demand. - FY2022-Q1MitigatedAnnual report
「Revenue increased 47% year on year to ¥226.8 billion, due to higher revenue resulting from the recovery in market conditions, including increased demand for automotive products.」
At 日立金属, revenue increased 47% year on year due to higher demand for automotive products and the recovery in market conditions, alleviating the impact of lower-demand risk. - FY2021MaterialisedAnnual report
「Revenue decreased 8% from the previous fiscal year to ¥8.7672 trillion. In addition to lower revenue across all segments due to the impact of COVID-19, 日立金属 and other businesses experienced lower revenue as demand for automotive, semiconductor and factory automation products declined.」
COVID-19 and lower demand for automotive, semiconductor and factory automation products were reflected in the full-year results as factors behind lower revenue across all segments. - FY2021-Q3MaterialisedAnnual report
「Revenue decreased 19% year on year to ¥541.4 billion, due to lower demand for automotive products resulting from the impact of COVID-19, among other factors.」
At 日立金属, continued lower demand for automotive products resulted in a 19% year-on-year decline in revenue for the cumulative third quarter. - FY2021-Q3MaterialisedAnnual report
「Revenue decreased 19% year on year to ¥558.7 billion, due to the impact of COVID-19, foreign exchange movements and other factors.」
At Hitachi Construction Machinery Co.,Ltd., lower demand and revenue due to COVID-19, foreign exchange movements and other factors became evident in a 19% year-on-year decline for the cumulative third quarter. - FY2021-Q2MaterialisedAnnual report
「Revenue decreased 25% year on year to ¥340.8 billion, due to lower demand for automotive products resulting from the impact of COVID-19, among other factors.」
At 日立金属, continued lower demand for automotive products resulted in a 25% decline in revenue for the cumulative second quarter. - FY2021-Q1WorsenedAnnual report
「Revenue decreased 34% year on year to ¥154.7 billion, due to lower demand for automotive products resulting from the impact of COVID-19, among other factors.」
At 日立金属, lower demand for automotive products became evident alongside the impact of COVID-19, resulting in a 34% year-on-year decline in revenue. - FY2020WorsenedAnnual report
「Revenue decreased 8% from the previous fiscal year to ¥8.7672 trillion. In addition to lower revenue across all segments due to the impact of COVID-19, 日立金属 and other businesses experienced lower revenue as demand for automotive, semiconductor and factory automation products declined.」
COVID-19 and lower demand for automotive, semiconductor and factory automation products reduced revenue across all segments, increasing demand fluctuation risk. - FY2020-Q3WorsenedAnnual report
「Revenue decreased 13% year on year to ¥670.9 billion, due to lower demand for products for the automotive, semiconductor and factory automation markets, as well as the impact of the transfer of the aluminum wheel business.」
At 日立金属, lower demand in the automotive, semiconductor and factory automation markets continued, resulting in a 13% year-on-year decline in revenue. - FY2020-Q2MaterialisedAnnual report
「Revenue decreased 12% year on year to ¥456.8 billion, due to lower demand for products for the automotive, semiconductor and factory automation markets, as well as the impact of the transfer of the aluminum wheel business.」
At 日立金属, lower demand in the automotive, semiconductor and factory automation markets continued, resulting in a 12% year-on-year decline in revenue. - FY2020-Q1MaterialisedAnnual report
「Revenue decreased 10% year on year to ¥233.9 billion, due to lower demand for products for the automotive, semiconductor and factory automation markets, as well as the impact of the transfer of the aluminum wheel business.」
At 日立金属, lower demand for automotive, semiconductor and factory automation products became evident in a 10% year-on-year decline in revenue. - FY2019MaterialisedAnnual report
「Revenue decreased 3% year on year to ¥971.0 billion due to lower sales in China and North America and lower revenue from the automotive information systems business, among other factors.」
In Automotive Systems, lower sales in China and North America and in automotive information systems were reflected in the full-year results, and the impact of demand fluctuations continued. - FY2019-Q3MaterialisedAnnual report
「Revenue decreased 2% year on year to ¥726.8 billion due to lower sales in China and North America and lower sales of automotive information systems, among other factors.」
Automotive Systems experienced lower sales in China, North America and automotive information systems, resulting in a 2% year-on-year decline in revenue. The impact of demand fluctuations has become evident in some businesses. - FY2019-Q2MaterialisedAnnual report
「Revenue decreased 2% year on year to ¥479.0 billion due to lower sales in North America.」
Automotive Systems experienced lower sales in North America, resulting in a 2% year-on-year decline in revenue. The impact of demand and supply-demand fluctuations has become evident in some businesses. - FY2019-Q1MitigatedAnnual report
「Revenue increased 14% year on year to ¥240.2 billion, due to expanded sales centered on Asia-Pacific, North America and China.」
In the Construction Machinery business, revenue increased 14% year on year due to expanded sales centered on Asia-Pacific, North America and China. The impact of weak demand and market conditions continued to ease. - FY2018MitigatedAnnual report
「Revenue increased 27% year on year to ¥959.1 billion, due to higher construction machinery sales in overseas markets, including China, the impact of 日立建機㈱ acquiring companies in Australia and the United States in the previous fiscal year, and foreign exchange movements.」
In the Construction Machinery business, revenue increased 27% year on year due to higher sales in overseas markets and other factors, alleviating the impact of weak demand and market conditions that had become evident through the previous fiscal year. - FY2018-Q3RestatedAnnual report
「Revenue increased 35% year on year to ¥683.9 billion, due to higher construction machinery sales in overseas markets, including China, and the impact of 日立建機㈱ acquiring companies in Australia and the United States in the previous fiscal year.」
In the Construction Machinery business, revenue increased 35% year on year due to higher sales in overseas markets and other factors, continuing the improvement trend seen through the previous quarter. - FY2018-Q2RestatedAnnual report
「Revenue increased 31% year on year to ¥440.2 billion, due to higher construction machinery sales in overseas markets, including China, and the impact of 日立建機㈱ acquiring companies in Australia and the United States in the previous fiscal year.」
In the Construction Machinery business, revenue increased 31% year on year, driven by higher sales in overseas markets and other factors, continuing the increase seen in the previous quarter. - FY2018-Q1MitigatedAnnual report
「Revenue increased 31% year on year to ¥211.4 billion. This reflected increased sales of construction machinery, including in China, and the impact of 日立建機㈱ making Bradken Limited in Australia, H-E Parts International LLC in the United States and HEP Australia Holdings Pty Ltd consolidated subsidiaries in the previous fiscal year, despite the impact of making 日立住友重機械建機クレーン㈱ an equity-method affiliate.」
In the Construction Machinery business, revenue increased 31% year on year due to higher sales, including in China, partly alleviating demand risk stemming from weak market conditions through the previous fiscal year. - FY2017MaterialisedAnnual report
「Impairment loss of ¥6,129 million due to lower profitability in the compressor business resulting from weak oil and natural gas market conditions, among other factors」
Lower profitability caused by weak market conditions resulted in an impairment loss in the compressor business. - FY2017-Q3MaterialisedAnnual report
「Revenue decreased 8% year on year to ¥507.0 billion, mainly due to the impact of weaker local currencies in Europe, Africa and Asia and continued weak market conditions in the Americas and Japan.」
In the Construction Machinery business, continued weak market conditions in the Americas and Japan, in addition to weaker local currencies, resulted in an 8% year-on-year decline in revenue. - FY2017-Q2MaterialisedAnnual report
「Revenue decreased 8% year on year to ¥334.9 billion, mainly due to the impact of weaker local currencies in Asia and Africa and continued weak market conditions in the Americas and Asia.」
In the Construction Machinery business, continued weak market conditions in the Americas and Asia resulted in an 8% year-on-year decline in revenue. - FY2017-Q1MaterialisedAnnual report
「Revenue decreased 9% year on year to ¥161.3 billion, mainly due to the impact of weaker local currencies in Asia and Africa and continued weak market conditions in Asia, including China, and the Americas.」
The Construction Machinery business experienced lower revenue as market conditions weakened in China, Asia and the Americas. - FY2016First statedAnnual report
「A sharp decline in demand and excess supply in markets where the Group competes with other companies could result in lower selling prices and, consequently, lower revenue and profitability.」
The disclosure cites construction machinery, automotive equipment and semiconductor manufacturing equipment as examples where the supply-demand balance could deteriorate.