Deteriorating profitability due to unprofitable large projects and product mix
First written in FY2020-Q1. 10 of 20 entries say "Worsened", first in FY2020-Q3. Latest entry: FY2027-H1.
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- FY2027-H1MitigatedAnnual report
「In addition to the earnings benefit from higher revenue, the segment secured gross profit through improved profitability on custom orders, and higher operating rates resulting from increased production ahead of second-half sales, resulting in segment profit of ¥600 million, up 80.2% year on year.」
In the power equipment business, gross profit was secured through improved profitability on custom orders, easing the pressure on profitability from project economics and product mix that had previously affected the business during the interim period. - FY2026WorsenedAnnual report
「Factor causing deterioration in the gross margin ratio: ▲¥229 million」
The deterioration in the contribution margin ratio reduced profit in the power equipment business by ¥229 million, again concretely demonstrating pressure on profitability from product mix, material costs and other factors. - FY2026-H1WorsenedAnnual report
「Segment profit was ¥333 million, down 36.9% year on year, due in part to soaring material costs compared with the same period of the previous year.」
Profit in the power equipment business decreased 36.9% year on year due to higher material costs, again clearly demonstrating pressure on profitability. - FY2025MitigatedAnnual report
「Although the contribution margin ratio improved by addressing customer needs and promoting the value added of products, and fixed costs were reduced, the impact of the substantial decline in revenue could not be covered. Operating profit decreased ¥1,330 million from the previous fiscal year to ¥1,805 million.」
The deterioration in the contribution margin ratio from the product and project mix was addressed through an increase in high-value-added projects and fixed-cost reductions. However, the impact of lower revenue could not be absorbed, and profit in the power equipment business decreased. - FY2025-H1WorsenedAnnual report
「Segment profit was a loss of ¥318 million, as efforts to reduce expenses were insufficient to offset the loss of profit from the substantial decline in revenue and lower profitability due to changes in product mix. The same period of the previous year recorded a profit of ¥421 million.」
Although the semiconductor business reduced expenses, it was unable to absorb the impact of the substantial decline in revenue and lower profitability due to changes in product mix, and turned from a profit in the same period of the previous year to a loss of ¥318 million. - FY2024MitigatedAnnual report
「In addition to the impact of higher revenue, the increased sales mix of relatively high-value-added products improved the contribution margin ratio and covered factors weighing on profit, including higher fixed costs and foreign-exchange effects,」
In the power equipment business, the contribution margin ratio improved as the sales mix shifted toward more high-value-added products, easing the deterioration in profitability from the previous project and product mix. - FY2024-Q3MitigatedAnnual report
「Segment profit was ¥2,952 million, up 741.9% year on year, due to higher revenue and an improved contribution margin ratio resulting from changes in the sales mix.」
The improved contribution margin ratio resulting from changes in the sales mix eased the pressure on profitability from the previous product and project mix during the nine months ended Q3. - FY2024-Q2MitigatedAnnual report
「In terms of profit, in addition to the benefit from higher sales, the gross margin ratio improved as a result of changes in the sales mix, the promotion of cost-reduction models and reviews of selling prices. Operating profit also increased because production was brought forward in preparation for large projects in the second half.」
The contribution margin ratio improved due to changes in the sales mix, cost-reduction models and a review of sales prices, easing the deterioration in profitability from the previous product mix and cost pressures in the quarter. - FY2024-Q1MitigatedAnnual report
「Segment profit was ¥282 million, an increase of ¥275 million year on year, due to an improved contribution margin ratio from the sales mix and operating gains from bringing production forward.」
Improved contribution margins from the sales mix and operating gains from production brought forward lifted profit despite the deterioration in profitability from the previous product mix. Profit in the power equipment business increased ¥275 million from the same period of the previous year. - FY2023-Q1WorsenedAnnual report
「Segment profit was ¥6 million, as higher raw-material prices and the weaker yen weighed on profit despite higher revenue. The same period of the previous year recorded a loss of ¥20 million.」
Revenue growth enabled the power equipment business to turn from a loss in the same period of the previous year to a profit, but higher raw-material prices and the weaker yen weighed on profit, which remained at ¥6 million. Cost and foreign-exchange pressures on profitability have continued. - FY2022WorsenedAnnual report
「Meanwhile, material costs rose due to higher steel prices and longer procurement lead times, particularly for electronic components, which deteriorated the contribution margin ratio. Increases in fixed costs, mainly personnel expenses, also weighed on profit.」
Profit improved on the recovery in demand and higher revenue, but higher material costs and fixed costs deteriorated the contribution margin ratio and continued to weigh on profitability. - FY2021WorsenedAnnual report
「Demand for large power supplies, including power supplies for producing copper foil for lithium-ion battery electrode materials that had driven sales in the previous fiscal year, slowed. Sales of small embedded power supplies also decreased due to production adjustments by customers and other factors.」
Slower demand for large projects and lower sales of small embedded power supplies coincided, and factors contributing to lower profitability from the product and project mix in the power equipment business continued throughout the fiscal year. - FY2021-Q3WorsenedAnnual report
「In particular, while there had been large projects in the same period of the previous year, including power supplies for producing copper foil for lithium-ion battery electrodes and power supplies for aluminum etching for electrolytic capacitors, such large projects decreased substantially in the current period. In addition, sales of power equipment overall, including small embedded power supplies that had remained solid through the previous fiscal year, slowed due to production adjustments by customers and other factors, resulting in a substantial decline in revenue.」
Large projects that had been present in the same period of the previous year decreased substantially, while sales of small embedded power supplies and other products slowed due to production adjustments by customers. Factors contributing to lower profitability from the product and project mix in the power equipment business have continued. - FY2021-Q2WorsenedAnnual report
「Segment profit was a loss of ¥10 million, as measures such as fixed-cost reductions were insufficient to offset the impact of lower revenue, despite their implementation. The same period of the previous year recorded a profit of ¥279 million.」
Although measures such as fixed-cost reductions were implemented, they were insufficient to offset the impact of lower revenue in the power equipment business, and profit turned into a loss of ¥10 million from a profit of ¥279 million in the same period of the previous year. Profitability is deteriorating. - FY2021-Q1WorsenedAnnual report
「Despite implementing measures including fixed-cost cuts, the impact of lower revenue could not be absorbed, resulting in a segment loss of ¥124 million, compared with profit of ¥144 million in the same quarter of the previous year.」
In the power equipment business, measures such as fixed-cost reductions were insufficient to offset the impact of lower revenue, and profit turned into a loss from a profit in the same period of the previous year. Profitability continued to deteriorate due to large projects and product mix. - FY2020-Q3WorsenedAnnual report
「Segment profit was ¥421 million, down 55.3% year on year, due largely to the impact of changes in product mix, including the lower revenue, the high number of large projects with tight profitability and sluggish sales of highly profitable power supplies for metal surface treatment.」
Large projects with tight profitability, stagnant sales of highly profitable power supplies for metal surface treatment and changes in product mix continued, and profit in the power equipment business decreased 55.3% year on year. - FY2020-Q2MaterialisedAnnual report
「Segment profit fell 44.4% year on year to ¥279 million, largely due to changes in the product mix, including the high proportion of large projects with tight margins and sluggish sales of highly profitable power supplies for metal surface treatment, as well as a decline in profit due to foreign exchange movements.」
Large projects with tight profitability, sluggish sales of highly profitable products, changes in product mix and foreign-exchange movements actually became factors weighing on earnings in the power equipment business. - FY2020-Q1First statedAnnual report
「Segment profit fell 59.0% year on year to ¥144 million, largely due to changes in the product mix, including the high proportion of large projects with tight margins and sluggish sales of highly profitable power supplies for metal surface treatment.」
Lower profitability on large projects, sluggish sales of highly profitable products and changes in product mix actually emerged as factors weighing on earnings in the power equipment business.