Improvement in Profit Margins and Operating Profit Through Cost Improvements
First written in FY2017-Q2. 27 of 34 entries say "Advanced", first in FY2017-Q3. Latest entry: 2026-10-07.
The whole theme swung hardest in 2022: 2 of 21 companies on the "Worse" side.
12 other companies' latest entry also says "Advanced".
- 2026-10-07Advancedfinance.yahoo.co.jpRegarding the product rollout related to liquid-cooling modules, the company has specified a new product for server cooling compatible with 800 volts and plans to showcase it in the United States for the first time.
- 2026-10-01First statedPresentation materials on financial results
「Fiscal year ending March 2027 performance outlook Revenue 27,087 28,000 +913 Operating profit ▲5,190 2,000 +7,189 Operating margin ▲19.2% 7.1% +26.3 pt」
For the fiscal year ending March 2027, the company has newly presented an outlook including full-year revenue of ¥2.8 trillion, operating profit of ¥200 billion and an operating margin of 7.1%. - FY2026-H1AdvancedAnnual report
「To achieve this, the company is pursuing a fundamental transformation of its earnings structure, including business restructuring, site integration and workforce reductions, with the aim of improving margins.」
The company has begun implementing the earnings-structure transformation under Conversion2027, including business restructuring, site integration and workforce reductions, as an evolution of the earnings improvements previously pursued through WPR-X and other initiatives. - FY2025ReframedAnnual report
「For variable costs, in addition to shifting toward a more profitable business portfolio by reviewing unprofitable and non-core businesses, the company will accelerate further reductions in material costs and the incorporation of quality into products through its technological capabilities. For fixed costs, it will carry out workforce reductions focused on manufacturing overhead through site consolidation and closures and fundamental process transformation, including PSI/MRP. At the same time, it will secure a strategic investment budget equivalent to approximately 1% of sales for systems and DX, advanced development and automation, establishing a highly profitable structure.」
The company is restructuring its previous cost improvement initiatives, including WPR-X, into Conversion2027, which includes business restructuring, site consolidation and closures, workforce reductions, PSI/MRP and strategic investment equivalent to approximately 1% of sales. - FY2025-H1AdvancedAnnual report
「Meanwhile, in precision small motors, the company launched a high-value-added water-cooled module, advancing the shift toward a more profitable business portfolio.」
The company launched a high-value-added water-cooled module, and operating income in precision small motors increased 74.3% year on year to ¥29.079 billion. - FY2024AdvancedAnnual report
「Operating income increased 81.0% year on year to ¥162.799 billion, reflecting the reliable realization worldwide of the benefits of persistent fixed-cost reductions and steady progress in improving costs and selling prices for each individual component.」
Fixed-cost reductions, cost improvements and selling-price improvements drove an 81.0% year-on-year increase in operating income. - FY2024-Q3AdvancedAnnual report
「Under these conditions, the entire Group worked together to strengthen the Three New (new markets, new products and new customers) initiative, persistently correct selling prices, substantially reduce fixed costs, and thoroughly cut non-material expenses.」
The entire Group implemented selling-price adjustments, fixed-cost reductions and reductions in external procurement costs, resulting in operating income for the first 3 quarters of ¥169.321 billion, up 36.1% year on year. - FY2024-Q2AdvancedAnnual report
「Against this backdrop, the entire Group worked together on thorough cost reductions, proactive sales activities and price negotiations with customers. As a result, the operating margin for the first six months of the current consolidated fiscal year was 10.0%. Operating income increased 20.1% year on year to ¥115.782 billion, a record high, including the impact of foreign exchange movements, which increased income by approximately ¥3.2 billion year on year, primarily because the company achieved significant fixed-cost reductions through restructuring carried out in the previous fiscal year and made steady progress in cost improvements.」
The company reported a first-half operating margin of 10.0% and a 20.1% year-on-year increase in operating income through cost reductions, sales activities, price negotiations, fixed-cost reductions and cost improvements. - FY2024-Q1AdvancedAnnual report
「Against this backdrop, the entire Group worked together on thorough cost reductions, proactive sales activities and price negotiations with customers. As a result, the operating margin for the first quarter recovered to 10.6%. Operating income increased 34.7% year on year to ¥60.152 billion, a record high, including the impact of foreign exchange movements, which increased income by approximately ¥1.5 billion year on year, primarily because the company achieved significant fixed-cost reductions through restructuring carried out in the previous fiscal year and made steady progress in cost improvements.」
In addition to fixed-cost reductions and cost improvements linked to the WPR-X initiative and the previous fiscal year's restructuring, the company implemented cost reductions, sales activities and price negotiations, reporting an operating margin of 10.6% and a 34.7% year-on-year increase in operating income. - FY2023RestatedAnnual report
「As the company will reach its 50th anniversary in July 2023, it recognized restructuring expenses during the fiscal year to achieve fundamental reform of its earnings structure through the “WPR-X” initiative, whose goal is to develop products that can achieve an overwhelming competitive advantage through technological capabilities under the principle that “technology creates cost,” and to significantly reduce fixed costs with the aim of achieving a V-shaped recovery in fiscal 2023 amid the deterioration in current market conditions.」
The company reaffirmed its policy of technology-driven product development, fixed-cost reductions and a V-shaped recovery in fiscal 2023 through the WPR-X initiative. - FY2023-Q3ReframedAnnual report
「In response to changes in the business environment, the Group launched the “WPR-X” initiative, whose goal is to develop products that can achieve an overwhelming competitive advantage through technological capabilities under the principle that “technology creates cost,” while significantly reducing fixed costs. The Group is currently working together as one to strengthen competitiveness not only in the short term but also over the medium to long term.」
The company reorganized its cost improvement and fixed-cost optimization activities under the former WPR4 framework as the “WPR-X” initiative, outlining a policy that combines technology-driven product development with fixed-cost reductions. - FY2023-Q2AdvancedAnnual report
「Operating income increased 8.1% year on year to ¥96.368 billion, a record high, including the impact of foreign exchange movements, which increased income by approximately ¥17.0 billion year on year, as a result of passing cost increases through to selling prices and implementing ongoing cost improvements and fixed-cost optimization in response to the global surge in costs.」
The company passed cost increases through to selling prices and implemented ongoing cost improvements and fixed-cost optimization, improving operating income to ¥96.368 billion, up 8.1% year on year. - FY2023-Q1AdvancedAnnual report
「Operating income increased 0.2% year on year to ¥44.660 billion, including the impact of foreign exchange movements, which increased income by approximately ¥8.7 billion year on year, as a result of ongoing cost improvements, fixed-cost optimization and passing cost increases through to selling prices in response to the global surge in costs.」
In response to the global surge in costs, the company implemented cost improvements, fixed-cost optimization and the pass-through of costs into selling prices, resulting in operating income of ¥44.660 billion, up 0.2% year on year. - FY2022AdvancedAnnual report
「Operating income increased 7.2% year on year to ¥171.487 billion, a record high, as a result of thorough cost improvements and fixed-cost optimization under the WPR4 project in response to the impact of semiconductors and other electronic components at customers and the global surge in raw material prices, with higher sales of consumer, commercial and industrial products as the main factor.」
Amid semiconductor shortages and surging raw material prices, the company implemented WPR4, cost improvements and fixed-cost optimization, lifting operating income to a record high. - FY2022-Q3AdvancedAnnual report
「Operating income increased 16.6% year on year to ¥134.631 billion, a record high, as a result of thorough cost improvements and fixed-cost optimization under the WPR4 project in response to the impact of semiconductors and other electronic components at customers and the global surge in raw material prices, with higher sales of consumer, commercial and industrial products as the main factor.」
Despite the impact of semiconductor components and surging raw material prices, the company implemented cost improvements and fixed-cost optimization under the WPR4 project, increasing operating income 16.6% year on year. - FY2022-Q2AdvancedAnnual report
「Although operating income continued to be affected by lower sales due to prolonged lockdowns at manufacturing sites in Southeast Asia, mainly Vietnam, temporary costs associated with emergency production transfers, and the impact of semiconductors and other electronic components at customers, as well as continued development costs for traction motor systems such as E-Axle, where demand is expanding rapidly, operating income increased 89.6% year on year to ¥8.337 billion, mainly due to the recovery in sales and the company's all-out efforts to achieve every possible cost improvement under the WPR4 project.」
In the automotive business, cost improvements under the WPR4 project continued despite the effects of lockdowns, component shortages and E-Axle development costs, and operating income increased 89.6% year on year to ¥8.337 billion. - FY2022-Q1AdvancedAnnual report
「Operating income increased 60.3% year on year to ¥44.555 billion, reflecting higher sales of consumer, commercial, industrial and automotive products, as well as thorough cost improvements and fixed-cost optimization under the WPR4 project and other measures.」
It states that cost improvements and fixed-cost optimization under the WPR4 project, together with higher sales of consumer, commercial, industrial and automotive products, led to a 60.3% year-on-year increase in company-wide operating income. - FY2021AdvancedAnnual report
「Operating income reflected an improved product mix and thorough cost improvements.」
In precision small motors, an improved product mix, in-house production of components and cost improvements drove a 48.3% year-on-year increase in operating income. - FY2021-Q3AdvancedAnnual report
「Operating income increased 24.0% year on year to ¥115.535 billion, reflecting higher revenue from capturing new demand, thorough cost improvements and fixed-cost optimization under the WPR4 project, and other measures.」
It states that thorough cost improvements and fixed-cost optimization under the WPR4 project, together with the capture of new demand, led to a 24.0% year-on-year increase in operating income. - FY2021-Q2AdvancedAnnual report
「Operating profit increased 32.5% year on year to ¥33,099 million following the implementation of thorough cost improvements and other measures.」
By implementing thorough cost improvements in precision small motors, operating income increased 32.5% year on year. Cost improvements under the WPR4 project are also being used to improve operating income in the automotive and company-wide businesses. - FY2021-Q1AdvancedAnnual report
「Operating profit increased 1.7% year on year to ¥28,112 million, as the Company implemented thorough cost improvements and fixed-cost optimization through the WPR4 project, despite a decline in profit resulting from lower revenue.」
Identifies the WPR4 project as a specific initiative for cost improvements and fixed-cost optimization, and reports that company-wide operating profit rose 1.7% year on year despite lower revenue. - FY2020AdvancedAnnual report
「Operating profit for the Appliance, Commercial and Industrial Products Group increased 1.1% from the previous fiscal year to ¥34,421 million, mainly due to higher revenue and the effects of cost reductions, despite the recognition of approximately ¥5.1 billion in one-time costs for factory consolidation and M&A expenses.」
Despite recognizing one-time costs for factory consolidation and M&A, operating profit in the core business increased 1.1% from the previous fiscal year due to higher revenue and the effects of cost reductions. - FY2020-Q3AdvancedAnnual report
「Nidec Copal's total revenue was ¥39,696 million, a decrease of ¥1,557 million year on year. This was due to lower sales of electronic and optical components, despite higher sales of other small motors. Meanwhile, operating profit was ¥2,350 million, an increase of ¥2,664 million year on year. This was due to cost improvements.」
At Nidec Copal, operating profit increased by ¥2,664 million year on year due to cost improvements despite lower revenue. The increase in profit at Nidec Techno Motor due to lower raw material prices was also described. - FY2020-Q2AdvancedAnnual report
「Operating profit at Nidec Techno Motor was ¥6,185 million, an increase of ¥763 million year on year. This was due to cost improvements and lower raw material prices despite lower revenue.」
Despite lower revenue, operating profit increased by ¥763 million year on year due to cost improvements and lower raw material prices. - FY2020-Q1AdvancedAnnual report
「Operating profit at Nidec Techno Motor was ¥3,297 million, an increase of ¥286 million year on year. This was due to cost improvements despite lower revenue.」
Despite lower revenue, operating profit at Nidec Techno Motor increased by ¥286 million year on year due to cost improvements. - FY2019AdvancedAnnual report
「Operating profit for the Appliance, Commercial and Industrial Products Group increased 6.1% from the previous fiscal year to ¥42,217 million, mainly due to higher revenue and the effects of cost reductions, despite the recognition of approximately ¥9.4 billion in one-time costs for factory consolidation and M&A expenses.」
States that the effects of cost reductions offset one-time costs and contributed to the 6.1% year-on-year increase in operating profit for the Appliance, Commercial and Industrial Products Group. - FY2019-Q2AdvancedAnnual report
「Revenue for the Appliance, Commercial and Industrial Products Group increased 8.8% year on year to ¥272,148 million, mainly due to higher sales at newly consolidated companies acquired in the second quarter of the previous fiscal year and increased sales of industrial motors, generators and other products. Foreign exchange movements increased revenue by approximately ¥400 million year on year. Operating profit increased 47.6% year on year to ¥28,216 million, mainly due to higher revenue and the effects of cost reductions.」
In the Appliance, Commercial and Industrial Products Group, operating profit rose 47.6% year on year to ¥28,216 million, driven by the consolidation of acquired companies, higher revenue and the effects of cost reductions. - FY2019-Q1AdvancedAnnual report
「Revenue for the Appliance, Commercial and Industrial Products Group increased 15.3% year on year to ¥138,558 million, mainly due to the impact of newly consolidated companies whose acquisitions were completed in the second quarter of the previous fiscal year. Foreign exchange movements reduced revenue by approximately ¥400 million year on year. Operating profit increased 62.2% year on year to ¥14,015 million, mainly due to higher revenue and the effects of cost reductions.」
In the Appliance, Commercial and Industrial Products Group, operating profit rose 62.2% year on year to ¥14,015 million, driven by the consolidation of acquired companies and the effects of cost reductions. - FY2018AdvancedAnnual report
「Operating profit was ¥25,381 million, up 53.3% from the previous fiscal year. This was mainly due to higher revenue and cost improvements.」
Cost improvements were reconfirmed as a factor behind higher operating profit, with annual operating profit for the Nidec segment up 53.3% from the previous fiscal year. - FY2018-Q3RestatedAnnual report
「Nidec's total revenue for the nine-month consolidated cumulative period was ¥170,173 million, up 0.8% year on year. This was mainly due to the positive impact of the yen's depreciation against the U.S. dollar, despite a decline in demand for HDD motors. Operating profit was ¥19,141 million, up 59.2% year on year. This was mainly due to higher revenue and cost improvements.」
Cost improvements continued to be cited as a factor behind higher operating profit, with nine-month cumulative operating profit of ¥19,141 million, up 59.2% year on year. - FY2018-Q1RestatedAnnual report
「Operating profit was ¥3,795 million, up 21.2% year on year. This was mainly due to higher revenue and cost improvements.」
Cost improvements continued to be cited as a factor behind higher operating profit, with Nidec reporting quarterly operating profit of ¥3,795 million, up 21.2% year on year. - FY2017AdvancedAnnual report
「Operating profit for the Automotive and Appliance, Commercial and Industrial Products Group increased 26.8% year on year to ¥58,085 million, mainly due to higher profit resulting from cost improvements and changes in product mix.」
States that measures including cost improvements contributed to the group's 26.8% year-on-year increase in operating profit for the fiscal year. - FY2017-Q3AdvancedAnnual report
「Operating profit was ¥14,812 million, up 27.0% year on year. This was mainly due to higher revenue and cost improvements.」
Nidec Sankyo reported a quantified increase in operating profit including cost improvements. Cost improvements were also cited as a factor behind higher operating profit at Nidec Techno Motor, Nidec Copal and other businesses. - FY2017-Q2First statedAnnual report
「Meanwhile, operating profit was ¥9,839 million, up 23.9% year on year. This was due to changes in product mix and cost improvements. Operating profit was also ¥4,327 million, up 48.0% year on year. This was mainly due to higher revenue and cost improvements.」
Across multiple segments, including Nidec Sankyo and Nidec Techno Motor, cost improvements were described as a specific means of increasing operating profit and improving profitability.