Risk of weaker profitability due to a decline in high-margin products and changes in the product mix
First written in FY2017-Q3. 10 of 21 entries say "Mitigated", first in FY2019-Q3. Latest entry: 2026-08-07.
Japan Electronic Materials moved to the "Worse" side of this theme in 2022, 1 year before the typical company in this theme (2023).
The whole theme swung hardest in 2023: 5 of 10 companies on the "Worse" side.
2 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Profit also rose substantially above the previous consolidated fiscal year, in addition to the increase in net sales and despite higher costs associated with upfront investment aimed at strengthening future production capacity and product capabilities, owing to the high utilization rates at our domestic plants.」
High utilisation of domestic plants and higher sales shifted the deterioration in profitability caused by the product mix and the downturn in demand for high-value-added products, which had emerged in the previous fiscal year, toward mitigation. - FY2026-H1MitigatedAnnual report
「Although costs increased due to upfront investment to strengthen production capacity and product capabilities for the future, profits exceeded those of the previous interim consolidated accounting period as a result of higher utilization rates and production efficiency at domestic plants, increased profit from the product mix, and the postponement of personnel hiring to the second half of the fiscal year.」
Improved utilisation and production efficiency at domestic plants and profit growth from the product mix shifted the deterioration in profitability caused by the downturn in demand for high-value-added products and changes in the product mix, which had emerged in the previous fiscal year, toward mitigation in the current interim consolidated accounting period. - FY2025MitigatedAnnual report
「Results were substantially higher than in the previous consolidated fiscal year due to higher sales centred on high-value-added products and improved utilisation of domestic plants.」
Higher sales of high-value-added products and improved utilisation of domestic plants shifted the deterioration in profitability caused by the product mix and the downturn in demand for high-value-added products, which had emerged in the previous fiscal year, toward mitigation. - FY2025-H1MitigatedAnnual report
「In terms of profit, despite the impact of volatile foreign exchange rates, results were significantly higher than in the same interim period of the previous year due to higher sales, primarily of high-value-added products, as well as improved utilisation at domestic factories, among other factors.」
The risk of deteriorating profitability from the product mix and the downturn in demand for high-value-added products shifted toward mitigation in the current interim consolidated accounting period, driven by higher sales centred on high-value-added products and improved utilisation of domestic plants. Segment profit increased 353.8% from the same interim consolidated accounting period of the previous year. - FY2024-Q3WorsenedAnnual report
「Although the company pursued cost reductions, profit was below the same quarter of the previous year due to lower plant utilisation resulting from the decline in revenue and reduced demand for high-value-added products. As a result, revenue for the cumulative consolidated period through the third quarter was ¥11,839 million, down 22.0% year on year, while segment profit was ¥826 million, down 74.4%.」
Lower plant utilisation and reduced demand for high-value-added products weighed on profit despite continued cost-cutting efforts. Segment profit declined 74.4% year on year, widening the decline from 68.3% in the previous quarter. quantified is true; materialized is true. - FY2024-Q2WorsenedAnnual report
「Although the company pursued cost reductions and benefited from the yen's continued depreciation, profit was below the same quarter of the previous year due to lower plant utilisation resulting from the decline in revenue and lower demand for high-value-added products. As a result, revenue for the cumulative consolidated period through the second quarter was ¥7,890 million, down 16.4% year on year, while segment profit was ¥578 million, down 68.3%.」
Lower plant utilisation and reduced demand for high-value-added products weighed on profit despite the weaker yen and cost reductions. Segment profit declined 68.3% year on year, and the deterioration in profitability caused by the downturn in high-margin products and changes in the product mix became more evident in the results. quantified is true; materialized is true. - FY2024-Q1MaterialisedAnnual report
「Profit was below the same quarter of the previous year due to the decline in revenue and changes in the product mix, among other factors.」
The change in the product mix emerged in the results, together with the decline in revenue, as a factor weighing on profit. Segment profit in the semiconductor test components business was ¥553 million, down 33.3% year on year. - FY2023-Q3MaterialisedAnnual report
「Although there were factors supporting higher profit, including the yen's continued depreciation, profit was below the same quarter of the previous year due to the decline in revenue and changes in the product mix, among other factors. As a result, revenue for the cumulative consolidated period through the third quarter was ¥15,177 million, down 11.9% year on year, while segment profit was ¥3,225 million, down 34.4%.」
Despite the profit contribution from the weaker yen, the decline in revenue and changes in the product mix weighed on profit. Segment profit declined 34.4% year on year. - FY2023-Q2MaterialisedAnnual report
「Although there were factors supporting higher profit, including the yen's continued depreciation, profit was below the same quarter of the previous year due to the decline in revenue and changes in the product mix, among other factors.」
The change in the product mix emerged in the results as a factor weighing on profit despite the profit contribution from the weaker yen. Segment profit in the semiconductor test components business declined 47.8% year on year. - FY2020-Q3RestatedAnnual report
「In terms of profit, although the company promoted cost reductions, results were below the same quarter of the previous year due to the impact of the product mix and upfront costs related to the start-up of the new factory, among other factors.」
The impact of the product mix continued to be cited as a factor weighing on profit. Segment profit in the semiconductor test components business declined 12.4% year on year. - FY2020-Q2RestatedAnnual report
「Although the company pursued cost reductions, profit was below the same quarter of the previous year due to the decline in revenue and the impact of the product mix, among other factors.」
The impact of the product mix continued to be cited as a factor weighing on profit. Segment profit in the semiconductor test components business declined 18.4% year on year. - FY2020-Q1MaterialisedAnnual report
「Profit was below the same quarter of the previous year due to the decline in revenue and the delayed recovery in demand for high-value-added products, among other factors. As a result, revenue for the cumulative consolidated period through the first quarter was ¥3,140 million, down 6.4% year on year, while segment profit was ¥350 million, down 52.4%.」
The delayed recovery in demand for high-value-added products again emerged in the results as a factor behind lower profit. Segment profit in the semiconductor test components business declined 52.4% year on year. - FY2019MitigatedAnnual report
「Profit was substantially higher than in the previous consolidated fiscal year due to changes in the sales mix and continued cost reductions.」
The product mix, which had been cited as a factor weighing on profit through the previous fiscal year, was described in the current fiscal year as a profit improvement factor, together with changes in the sales mix and cost reductions. - FY2019-Q3MitigatedAnnual report
「Profit was substantially higher than in the previous year due to the product mix and continued cost reductions. As a result, revenue for the cumulative consolidated period through the third quarter was ¥10,649 million, up 2.4% year on year, while segment profit was ¥1,721 million, up 82.1%.」
The product mix, which had been cited as a factor weighing on profit through the previous fiscal year, was described as a profit improvement factor alongside cost reductions in the cumulative consolidated period through the third quarter. Segment profit increased 82.1% year on year. - FY2018-Q2MaterialisedAnnual report
「Although the company pursued cost reductions, profit was below the previous year due to its response to increasingly sophisticated customer requirements and the impact of changes in the product mix, among other factors. As a result, revenue for the cumulative consolidated period through the second quarter was ¥6,361 million, up 15.9% year on year, while segment profit was ¥321 million, down 22.6%.」
The product mix continued to affect profit. Revenue increased 15.9%, while segment profit declined 22.6% year on year. - FY2018-Q1MaterialisedAnnual report
「In terms of profit, while the company worked to reduce expenses and costs, it was affected by increases in R&D expenses and other costs, initiatives to expand production, and the impact of the product mix.」
The company stated that the product mix had an actual impact on profit in the quarter. Segment profit in the semiconductor test components business was ¥134 million, up 82.1% year on year. - FY2017-Q3First statedAnnual report
「Although the company worked to strengthen production capacity and advance product development while also pursuing cost reductions, results were weak due to the decline in revenue and changes in the product mix caused by a downturn in high-margin products.」
The decline in high-margin products and the change in the product mix were explicitly identified as profit deterioration factors for the first time. Segment profit in the semiconductor test components business was ¥552 million, down 60.3% year on year.