Improving Proficiency and Productivity and Reducing Costs at Overseas Production Sites
First written in FY2017-Q1. 19 of 37 entries say "Worsened", first in FY2018-Q1. Latest entry: 2026-11-10.
Yokowo moved to the "Worse" side of this theme in 2025, 2 years after the typical company in this theme (2023).
12 other companies' latest entry also says "Worsened".
- 2026-11-10WorsenedRevision to earnings forecast
「中国生産拠点における生産体制最適化に伴う費用の計上に加え、円安進行によるベトナム／フィリピン生産拠点のコスト上昇、原油価格上昇に伴う輸送費の増加、原材料価格の高騰などにより、143百万円の利益(前年同期比△84.0％)となりました。」
VCCSでは生産体制最適化を進める一方、海外拠点費用、輸送費、原材料価格の上昇が重なり、セグメント利益が前年同期比で減少した。 - FY2027-H1WorsenedAnnual report
「Segment profit was ¥143 million, down 84.0% year on year, due to costs associated with optimizing the production structure at Chinese production sites, higher costs at the Vietnam and Philippines production sites resulting from the weaker yen, increased transportation costs due to higher crude oil prices, and surging raw material prices.」
VCCS profit declined 84.0% year on year due to production-structure optimization costs, higher costs at overseas sites, and increases in transportation and raw material costs. - 2026-08-06WorsenedResults
「円安進行によるベトナム／フィリピン生産拠点におけるコスト上昇に加え、原油価格上昇に伴う輸送費増加及び原材料価格高騰の影響などにより、116百万円の利益(前年同期比△81.0％)となりました。」
海外生産拠点のコスト上昇、輸送費増加、原材料価格高騰がVCCSの利益減少として表れた。 - FY2026WorsenedAnnual report
「Segment profit was ¥895 million, down 35.5% year on year. This was despite higher production efficiency from stable orders and lower costs at the Chinese, Vietnamese and Philippine production sites due to yen appreciation, as labor unit costs at production sites increased and costs rose due to the impact of U.S. tariffs.」
While higher production efficiency and lower site costs had a positive effect, VCCS profit declined 35.5% year on year due to higher labor unit costs and the burden of U.S. tariffs. - FY2026-H1Higher production efficiency offset by labor costs and tariff burdenAnnual report
「Segment profit was ¥895 million, down 35.5% year on year. This was despite higher production efficiency from stable orders and lower costs at the Chinese, Vietnamese and Philippine production sites due to yen appreciation, as labor unit costs at production sites increased and costs rose due to the impact of U.S. tariffs.」
While stable orders improved production efficiency and exchange-rate movements reduced site costs, VCCS profit declined 35.5% year on year due to higher labor unit costs and the burden of U.S. tariffs. - FY2025WorsenedAnnual report
「Segment profit was ¥2,838 million, down 8.4% from the previous fiscal year. This was despite higher production efficiency resulting from a review of the manufacturing structure and stable orders, as labor and other costs increased at the Chinese and Vietnamese production sites due to local-currency appreciation, and logistics costs including ocean freight increased.」
While a review of the manufacturing structure and higher production efficiency had a positive effect, VCCS profit declined 8.4% year on year due to higher labor and logistics costs at the Chinese and Vietnamese sites. - FY2025-H1MitigatedAnnual report
「Although labor costs and other expenses at the Chinese and Vietnamese production sites increased due to appreciation of local currencies, segment profit rose to ¥1,389 million, up 93.8% year on year, due to higher production efficiency resulting from a review of the manufacturing structure and stable orders.」
While labor costs continued to rise at the Chinese and Vietnamese sites, VCCS's earnings improved year on year due to a review of its manufacturing structure and higher production efficiency. - FY2024MitigatedAnnual report
「Profit was ¥3,100 million, compared with a loss of ¥1,701 million in the previous fiscal year. This was despite higher labor and other costs at the Chinese and Vietnamese production sites due to local-currency appreciation and higher production volume, as profit increased with higher revenue, logistics costs declined with the easing of ocean freight rates, and recovery of higher costs progressed.」
Although labor costs remained higher at the Chinese and Vietnamese sites, VCCS improved from a loss in the previous fiscal year to a profit of ¥3,100 million due to lower logistics costs, higher revenue and recovery of higher costs. - FY2024-Q3MitigatedAnnual report
「Segment profit was ¥2,009 million, compared with a loss of ¥1,434 million in the same period of the previous year. This was despite higher labor and other costs at the Chinese and Vietnamese production sites due to local-currency appreciation and higher production volume, as profit increased with higher revenue, logistics costs declined with the easing of ocean freight rates, and recovery of higher costs progressed.」
While labor costs continued to rise at the Chinese and Vietnamese production sites, VCCS's earnings improved from a loss of ¥1,434 million in the same period of the previous year to a profit of ¥2,009 million due to lower logistics costs resulting from the easing of ocean freight rates and progress in recovering higher costs. - FY2024-Q2MitigatedAnnual report
「Segment profit was ¥717 million, compared with a loss of ¥1,287 million in the same period of the previous year. This was despite higher labor and other costs at the Chinese and Vietnamese production sites as a result of local-currency appreciation, as logistics costs declined with the easing of ocean freight rates and profit increased with higher revenue.」
While labor costs continued to rise at the Chinese and Vietnamese production sites, VCCS's earnings improved from a loss in the same period of the previous year to a profit of ¥717 million due to lower logistics costs resulting from the easing of ocean freight rates and higher revenue. - FY2024-Q1MitigatedAnnual report
「Segment profit was ¥155 million, compared with a loss of ¥1,102 million in the same period of the previous year. This was despite higher labor and other costs at the Chinese and Vietnamese production sites as a result of local-currency appreciation, as logistics costs declined with the easing of ocean freight rates and profit increased with higher revenue.」
While labor costs continued to rise at the Chinese and Vietnamese production sites, VCCS's earnings improved substantially due to lower logistics costs resulting from the easing of ocean freight rates and other factors. - FY2023WorsenedAnnual report
「Segment loss was ¥2,094 million, compared with a loss of ¥1,443 million in the previous fiscal year. This was despite partial recovery of higher costs, as costs increased due to persistently high raw material prices and ocean freight rates, raw material and labor costs increased at the Chinese and Vietnamese production sites as a result of local-currency appreciation, and a one-time inventory valuation write-down was recorded in the fourth quarter under the lower-of-cost-or-market method.」
The loss in automotive communications equipment widened from ¥1,443 million to ¥2,094 million due to raw material and labor costs at overseas production sites, persistently high ocean freight rates and other factors. - FY2023-Q3WorsenedAnnual report
「Segment loss was ¥1,728 million, compared with a loss of ¥788 million in the same period of the previous year. This was despite partial recovery of higher costs, as costs increased due to persistently high raw material prices and ocean freight rates, raw material and labor costs increased at the Chinese and Vietnamese production sites as a result of local-currency appreciation, and productivity declined at the Chinese production site due to the spread of COVID-19.」
In automotive communications equipment, the loss widened from ¥788 million in the same period of the previous year to ¥1,728 million due to the cost burden of raw materials, labor, ocean freight and other items, as well as lower productivity caused by the spread of infection at the Chinese production site. - FY2023-Q2WorsenedAnnual report
「Although costs remained elevated due to high raw-material prices and ocean freight rates and labor costs increased at the China and Vietnam production bases because of appreciation of local currencies, the loss in the second quarter narrowed substantially due to partial recovery of the higher costs and a decrease in deductions for unrealized profits related to inventory valuation. The segment posted a loss of ¥1,475 million, compared with a loss of ¥488 million in the same period of the previous year.」
Higher labor costs at the China and Vietnam production bases and elevated raw-material prices and ocean freight rates continued, causing the cumulative loss in automotive communications equipment to widen from the same period of the previous year. Factors contributing to a reduction in the loss were also reported for the standalone second quarter. - FY2023-Q1WorsenedAnnual report
「Segment loss was ¥1,201 million, compared with profit of ¥1 million in the same period of the previous year, due to continued higher logistics costs from soaring ocean freight rates and other factors, higher labor costs at the China and Vietnam production bases resulting from appreciation of local currencies, higher costs from rising raw-material prices, and a substantial increase in deductions for unrealized profits associated with higher inventory valuations resulting from the weaker yen.」
In addition to higher labor costs at the China and Vietnam production bases, the burden of logistics costs, raw-material costs and inventory valuations continued, causing the automotive communications equipment segment to deteriorate from profit in the same period of the previous year to a loss of ¥1,201 million. - FY2022WorsenedAnnual report
「Segment loss was ¥1,443 million, compared with profit of ¥433 million in the previous fiscal year, due to higher logistics costs from soaring ocean freight rates and other factors, higher labor costs at the China and Vietnam production bases resulting from appreciation of local currencies, higher costs from rising raw-material prices, and the cost of maintaining production capacity in preparation for automakers' catch-up production.」
In addition to higher labor costs at the China and Vietnam production bases, logistics costs, raw-material costs and production-capacity maintenance costs increased, causing automotive communications equipment profit to deteriorate into a loss. - FY2022-Q3WorsenedAnnual report
「Segment loss was ¥788 million, compared with profit of ¥136 million in the same period of the previous year, due to the decline in orders from the second quarter onward, higher logistics costs resulting from soaring ocean freight rates and other factors, and the cost of maintaining production capacity in preparation for automakers' catch-up production.」
Higher logistics costs from soaring ocean freight rates and the cost burden of maintaining production capacity caused the automotive communications equipment segment to deteriorate from profit of ¥136 million in the same period of the previous year to a loss of ¥788 million. - FY2022-Q2WorsenedAnnual report
「Segment loss was ¥488 million, compared with a loss of ¥345 million in the same period of the previous year, due to the sharp decline in second-quarter sales, higher-than-expected logistics costs resulting from soaring ocean freight rates and other factors, and the cost of maintaining production capacity in preparation for automakers' catch-up production.」
Automotive communications equipment incurred higher logistics costs from soaring ocean freight rates and the cost burden of maintaining production capacity, causing the loss to widen from ¥345 million in the same period of the previous year to ¥488 million. - FY2022-Q1MitigatedAnnual report
「Although segment earnings improved substantially, profit was ¥1 million, compared with a loss of ¥942 million in the same period of the previous year, due to higher logistics costs from soaring ocean freight rates and extensive use of air freight caused by difficulties procuring materials and production delays.」
Automotive communications equipment earnings improved from a loss of ¥942 million in the same period of the previous year to profit of ¥1 million, while higher ocean freight rates, difficulty procuring materials, and increased logistics costs from production delays remained burdens on production and costs. - FY2021MitigatedAnnual report
「Earnings improved substantially due to a higher proportion of relatively high-margin products from the second quarter onward, lower manufacturing expenses as cost management took hold, and improved yields in the manufacturing process, resulting in profit of ¥433 million, compared with profit of ¥30 million in the previous fiscal year.」
The deterioration in automotive communications equipment production and profitability eased due to a higher proportion of high-margin products, lower manufacturing expenses, and improved yields. - FY2021-Q3MitigatedAnnual report
「Although the first quarter resulted in a substantial loss of ¥942 million, earnings improved significantly from the second quarter onward due to a higher proportion of products with relatively high profit margins, lower manufacturing expenses resulting from the resolution of material defects in the same quarter of the previous year and the implementation of cost management, and a lower labor-cost ratio resulting from higher productivity. The segment posted profit of ¥136 million, up 9.2% year on year.」
The automotive communications equipment segment's earnings, which had deteriorated in connection with overseas production bases, swung to profit on a cumulative third-quarter basis due to the resolution of material defects, lower manufacturing expenses, and a lower labor-cost ratio resulting from improved productivity. - FY2021-Q1WorsenedAnnual report
「As a result, segment sales fell 45.6% year on year to ¥5,367 million, a substantial decrease. Segment loss was ¥942 million, compared with profit of ¥105 million in the same period of the previous year, due to lower profit from the sales decline, lower utilization rates at both the China and Vietnam plants, and a higher fixed-cost ratio resulting from securing personnel in preparation for a production recovery.」
Lower utilization rates at both the China and Vietnam plants and a higher fixed-cost ratio from securing personnel in preparation for a production recovery caused the automotive communications equipment segment to swing from profit of ¥105 million in the same period of the previous year to a loss of ¥942 million. - FY2020WorsenedAnnual report
「Segment profit was ¥30 million, down 93.8% from the previous fiscal year, due to higher start-up costs for newly introduced automated lines, temporary expenses caused by defects in newly procured materials, and increased holiday and overtime work resulting from temporary shortages of manufacturing personnel and delays in material supplies at Chinese production bases following the spread of COVID-19.」
Start-up costs for automated lines, defects in procured materials, and personnel shortages and delays in material supplies caused by the pandemic overlapped, causing automotive communications equipment profit to decline 93.8% from the previous fiscal year. - FY2020-Q3WorsenedAnnual report
「Segment profit was ¥124 million, down 69.4% year on year, due to increased holiday and overtime work associated with the rapid transfer of production from China to the Vietnam plant, higher depreciation expenses for newly introduced automated lines, and temporary expenses arising from defects in newly procured materials.」
Holiday and overtime work associated with the rapid transfer of production, depreciation expenses for automated lines, and temporary expenses caused by defects in newly procured materials occurred, causing automotive communications equipment segment profit to decline 69.4% year on year. - FY2020-Q2WorsenedAnnual report
「Segment profit was ¥109 million, down 58.1% year on year, due to increased holiday and overtime work associated with the rapid transfer of production from China to the Vietnam plant, higher depreciation expenses for newly introduced automated lines, and temporary loss costs arising from defects in newly procured materials.」
Holiday and overtime work associated with the transfer of production, depreciation expenses for new automated lines, and temporary loss costs caused by defects in newly procured materials occurred, causing automotive communications equipment segment profit to decline 58.1% year on year. - FY2020-Q1WorsenedAnnual report
「Segment profit was ¥105 million, down 28.2% year on year, due to higher product transportation costs caused by procurement delays arising from component shortages, as well as higher manufacturing labor costs accompanying increased business volume.」
Higher transportation costs due to component shortages and procurement delays, together with higher manufacturing labor costs accompanying increased business volume, caused automotive communications equipment segment profit to decline 28.2% year on year. - FY2019MitigatedAnnual report
「Segment operating income was ¥482 million, up 459.1% from the previous fiscal year. Profit was weighed down by higher manufacturing labour costs in China, higher tariff rates on products exported to the United States and a change in the inventory valuation method, but the company reduced the cost of exporting components and products by improving production-control efficiency, among other measures.」
Although higher labor costs in China and the tariff burden remained, lower export costs resulting from improved production management efficiency lifted automotive communications equipment segment profit to ¥482 million. - FY2019-Q3MitigatedAnnual report
「Segment operating income was ¥406 million, up 565.2% year on year. Although manufacturing labour costs in China remained high and higher tariff rates on products exported to the United States weighed on profit, the company reduced the cost of exporting components and products by improving production-control efficiency, among other measures.」
Although high labor costs in China and the tariff burden remained, exports costs were reduced through improved production management efficiency, and automotive communications equipment segment profit improved from a loss in the same period of the previous year to ¥406 million. - FY2019-Q2MitigatedAnnual report
「As a result, segment sales increased 8.3% year on year to ¥18,662 million. Segment profit was ¥261 million, compared with a loss of ¥76 million in the same period of the previous year, despite the negative impact of higher tariffs on exports to the United States, as well as persistently high manufacturing labor costs in China, partly offset by lower transportation costs for components and products.」
Manufacturing labor costs in China remained high and tariffs were a negative factor, but the automotive communications equipment segment swung from a loss in the same period of the previous year to profit of ¥261 million due to lower transportation costs and other factors. - FY2019-Q1MitigatedAnnual report
「Although manufacturing labor costs in China remained high, their ratio to segment sales improved slightly, and transportation costs for components and products also declined. As a result, profit was ¥147 million, compared with a loss of ¥134 million in the same period of the previous year.」
Although manufacturing labor costs in China remained high, their ratio to sales improved slightly and transportation costs declined. As a result, the automotive communications equipment segment swung from a loss in the same period of the previous year to profit of ¥147 million. - FY2018WorsenedAnnual report
「As a result, segment sales increased 13.2% from the previous fiscal year to ¥36,256 million. Segment profit was ¥86 million, down 92.8% from the previous fiscal year, due to higher labor costs in China from wage increases and other measures to secure manufacturing personnel and improve retention, lower productivity associated with a higher proportion of newly hired personnel, and a substantial increase in product transportation costs from extensive use of air freight due to delays in procuring components.」
Automotive communications equipment sales increased, but profit fell 92.8% from the previous fiscal year due to higher wages, lower productivity, and increased transportation costs caused by delays in procuring components at the China base. Challenges in the earnings structure remain. - FY2018-Q3Automotive communications equipment profit recovered to a small profitAnnual report
「As a result, segment sales increased 14.0% year on year to ¥26,464 million. Segment profit was ¥61 million, down 94.5% year on year, due to higher labor costs in China from wage increases and other measures to secure manufacturing personnel and improve retention, lower productivity associated with a higher proportion of newly hired personnel, and a substantial increase in product transportation costs from extensive use of air freight due to delays in procuring components.」
Descriptions of higher wages, lower productivity and increased transportation costs due to delays in procuring components at the China base have continued. Meanwhile, the automotive communications equipment segment swung from a cumulative first-half loss to profit of ¥61 million for the cumulative third quarter, although this was down 94.5% year on year. - FY2018-Q2RestatedAnnual report
「Segment loss was ¥76 million, compared with profit of ¥673 million in the same period of the previous year, due to higher labor costs in China from wage increases and other measures to secure manufacturing personnel and improve retention, lower productivity associated with a higher proportion of newly hired personnel, and a substantial increase in product transportation costs from extensive use of air freight due to delays in procuring components.」
At the China base, wage increases, lower productivity associated with a higher proportion of newly hired personnel, and higher transportation costs due to delays in procuring components continued. The automotive communications equipment segment posted a cumulative first-half loss of ¥76 million. - FY2018-Q1WorsenedAnnual report
「In China, labor costs increased due to wage increases and other measures to secure manufacturing personnel and improve retention. In addition, the higher proportion of newly hired personnel reduced productivity, while delays in procuring components led to extensive use of air freight and a substantial increase in product transportation costs, resulting in a loss of ¥134 million, compared with profit of ¥224 million in the same period of the previous year.」
At the China base, wage increases to secure personnel and improve retention, lower productivity associated with a higher proportion of newly hired personnel, and higher transportation costs from using air freight due to delays in procuring components occurred. The automotive communications equipment segment swung from profit in the same period of the previous year to a loss of ¥134 million. Meanwhile, the higher proportion of production at the Malaysia plant in circuit-testing connectors was a factor contributing to higher profit. - FY2017-Q3RestatedAnnual report
「Cost of sales was ¥25,445 million, up 4.6% year on year, as higher manufacturing costs accompanying the increase in sales were partly offset by improved proficiency and productivity among manufacturing personnel at overseas production bases.」
Improved proficiency and productivity at overseas production bases were reiterated as cost-related factors. By segment, the company also mentioned productivity improvement at the Vietnam plant and cost-reduction initiatives at the Malaysia plant. - FY2017-Q2RestatedAnnual report
「At the Vietnam plant, proficiency and productivity improved significantly, partly because of the high retention rate among production personnel.」
The improvement in proficiency and productivity at the Vietnam plant was reiterated as a factor contributing to earnings improvement. For circuit-testing connectors, the company also mentioned productivity improvement and cost-reduction initiatives at the Malaysia plant. - FY2017-Q1First statedAnnual report
「At the Vietnam plant, proficiency and productivity improved significantly, partly because of the high retention rate among production personnel.」
At the Vietnam plant, proficiency and productivity improved against a backdrop of high staff retention. At the Malaysia plant, productivity improvement and cost-reduction initiatives were reported as factors contributing to earnings improvement.