Repair and Response Costs Arising from Defects in Power Equipment Manufactured by a Chinese Subsidiary
First written in FY2019-Q2. 2 of 4 entries say "Mitigated", first in FY2020. Latest entry: FY2021.
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- FY2021MitigatedAnnual report
「Taking past cases in which product defects affected the Group's operating performance and financial condition as a warning, we strengthened our quality-assurance initiatives beyond the measures already in place to prevent recurrence. These initiatives included revising factory audit checklists, standardizing quality metrics across the Group, and improving quality-assurance processes through the use of IATF Core Tools, techniques emphasized by international automotive quality-management standards.」
Quality assurance and recurrence-prevention measures following defects in power equipment manufactured by a Chinese subsidiary were implemented through factory audits, quality indicators, and the use of IATF core tools. - FY2020MitigatedAnnual report
「In fiscal 2018, defects in power equipment occurred at an overseas factory of the Electronic Components Business, reducing operating income, and repair costs related to the defects continued through fiscal 2019. Taking this as a renewed reminder that product defects can affect the Group's performance and financial position, we have strengthened our quality assurance efforts by revising factory audit checklists, standardizing quality indicators across the Group, and improving quality assurance processes using IATF core tools, in addition to existing measures to prevent recurrence of product defects.」
While the power equipment defects and related repair costs continued through fiscal 2019, measures to strengthen factory audits, quality indicators, and quality assurance processes were implemented. - FY2019-Q3MaterialisedAnnual report
「In the Electronic Components Business, the resolution of procurement difficulties for components and normalization of prices for materials such as copper supported profit. However, demand for transformers, reactors, current sensors, and other products from industrial machinery customers declined against a backdrop of slower capital investment demand, particularly in China, while inquiries from the power tools and automotive sectors also remained weak. As a result, net sales declined 0.6% year on year to ¥41,124 million, and segment profit fell sharply to ¥533 million, down 70.6%, including the impact of repair costs recognized in the second quarter in connection with defective power equipment.」
The impact of repair costs related to defective power equipment manufactured by a Chinese subsidiary extended into the cumulative third quarter, and segment profit in the Electronic Components Business fell 70.6% year on year. - FY2019-Q2First statedAnnual report
「In addition, as previously reported, costs related to responding to defects in power equipment manufactured by one of the Company's consolidated subsidiaries in China were included in segment profit for the cumulative second quarter of the fiscal year. As a result, net sales remained broadly in line with the previous year at ¥27,816 million, up 0.4% year on year, but segment profit fell sharply to ¥157 million, down 88.9%.」
Defects occurred in power equipment manufactured by a consolidated subsidiary in China, and the related response costs were recognized in segment profit for the quarter. Segment profit in the Electronic Components Business was ¥157 million, down 88.9% year on year.