Strengthening Cost Competitiveness by Improving Production Efficiency and Managing Major Expenses
First written in FY2016. 19 of 40 entries say "Worsened", first in FY2018-Q1. Latest entry: 2026-11-10.
- FY2026WorsenedAnnual report
「A key challenge is to reform the earnings structure through active and strategic sales activities to expand new orders, further optimization of workforce allocation, automation of production processes, promotion of DX, a thorough focus on productivity and rigorous budget management of major expenses. The segment loss (ordinary loss) was ¥195 million, compared with a segment loss (ordinary loss) of ¥68 million in the previous fiscal year.」
Automation of production processes and promotion of DX were newly identified as measures to reform the earnings structure. Meanwhile, the automotive parts segment's loss widened from ¥68 million in the previous fiscal year to ¥195 million, indicating deterioration in earnings for the fiscal year. - FY2026-H1WorsenedAnnual report
「In addition to lower orders due to the factors described above, the segment was affected by upfront investments, including plant-layout reorganization to secure production lines in preparation for 2 large orders. As a result, the segment loss (ordinary loss) was ¥218 million, compared with a segment loss (ordinary loss) of ¥38 million in the same period of the previous year.」
Although the company is reorganizing plant layouts and taking other measures to secure production lines, the automotive parts segment's loss widened from ¥38 million in the same period of the previous year to ¥218 million due to lower orders and upfront investments. - FY2025WorsenedAnnual report
「In addition to lower orders due to the factors described above, the segment was affected by upfront investments, including temporary declines in productivity and higher manufacturing expenses during the plant reorganization period in preparation for 2 large orders secured for the next fiscal year and beyond. As a result, the segment loss (ordinary loss) was ¥68 million, compared with segment profit (ordinary profit) of ¥28 million in the previous fiscal year.」
The automotive parts segment deteriorated from a ¥28 million profit to a ¥68 million loss due to temporary lower productivity associated with plant reorganization, higher manufacturing expenses and upfront investments. - FY2025-H1WorsenedAnnual report
「In terms of earnings, orders declined due to the factors described above, resulting in a segment loss (ordinary loss) of ¥38 million, compared with segment profit (ordinary profit) of ¥84 million in the same period of the previous year.」
The automotive parts segment deteriorated from a ¥84 million profit in the same period of the previous year to a ¥38 million loss due to lower orders. - FY2024WorsenedAnnual report
「A key challenge is to reform the earnings structure through further optimization of workforce allocation, a thorough focus on productivity and rigorous budget management of major expenses. In terms of earnings, surplus costs, including personnel expenses incurred while the aforementioned line was stopped, coincided with upfront investments, including materials, personnel and other expenses, for launching multiple parts for a new vehicle model that could not be fully absorbed by sales during the fiscal year. As a result, segment profit (ordinary profit) was ¥28 million, down 82.9% from the previous fiscal year.」
Amid challenges involving workforce allocation, productivity and management of major expenses, surplus costs resulting from production-line stoppages at a major customer and upfront investments in parts for a new vehicle model were incurred, causing automotive parts segment profit to decline substantially. - FY2024-Q3WorsenedAnnual report
「Although orders increased, segment profit (ordinary profit) was ¥112 million, down 31.2% year on year, due in part to upfront investments, including material, personnel and other expenses, associated with launching multiple parts for 2 new vehicle models.」
Although orders increased, automotive parts segment profit declined 31.2% year on year to ¥112 million due to upfront investments in materials, personnel and other expenses associated with launching multiple parts for 2 new vehicle models. - FY2024-Q2AdvancedAnnual report
「Although electricity charges and raw material prices rose, productivity improved through optimized workforce allocation and lower logistics costs, while appropriate price pass-through also proved effective. As a result, segment profit (ordinary profit) was ¥84 million, up 4.7% year on year.」
Through optimized workforce allocation, lower logistics costs, productivity improvements and price pass-through, automotive parts segment profit rose 4.7% year on year to ¥84 million. - FY2024-Q1RestatedAnnual report
「Although electricity charges and raw material prices rose, productivity improvements, including lower logistics costs, progressed. As a result, the segment posted profit (ordinary profit) of ¥20 million, down 11.0% year on year.」
Despite higher electricity charges and raw material prices, the automotive parts segment continued productivity improvements, including lower logistics costs, and secured a profit of ¥20 million. Profit declined 11.0% year on year. - FY2023AdvancedAnnual report
「Although raw material prices and electricity charges rose, productivity improved through optimized workforce allocation and efficient logistics-cost management, while appropriate price pass-through also proved effective. As a result, segment profit (ordinary profit) was ¥170 million, compared with a segment loss (ordinary loss) of ¥158 million in the previous fiscal year.」
Through optimized workforce allocation, efficient logistics-cost management, productivity improvements and price pass-through, the automotive parts segment turned from a ¥158 million loss in the previous fiscal year to a ¥170 million profit. - FY2023-Q3AdvancedAnnual report
「Although raw material prices and electricity charges rose, productivity improvements, including optimized workforce allocation and efficient logistics-cost management, progressed. As a result, segment profit (ordinary profit) was ¥163 million, compared with a segment loss (ordinary loss) of ¥133 million in the same period of the previous year.」
The automotive parts segment advanced measures including optimized workforce allocation and efficient logistics-cost management, turning from a ¥133 million loss in the same period of the previous year to a ¥163 million profit. - FY2023-Q2AdvancedAnnual report
「Although raw material prices and electricity charges rose, productivity improvements, including optimized workforce allocation and lower logistics costs, progressed. As a result, segment profit (ordinary profit) was ¥81 million, compared with a segment loss (ordinary loss) of ¥152 million in the same period of the previous year.」
Through optimized workforce allocation, lower logistics costs and productivity improvements, the automotive parts segment turned from a ¥152 million loss in the same period of the previous year to an ¥81 million profit. - FY2023-Q1AdvancedAnnual report
「Although raw material prices and electricity charges rose, productivity improvements, including optimized workforce allocation and lower logistics costs, progressed. As a result, segment profit (ordinary profit) was ¥22 million, compared with a segment loss (ordinary loss) of ¥36 million in the same period of the previous year.」
The company optimized workforce allocation, reduced logistics costs and improved productivity, turning segment earnings from a ¥36 million loss in the same period of the previous year to a ¥22 million profit. - FY2022WorsenedAnnual report
「Accordingly, a key challenge in the automotive parts business is to reform its earnings structure by conducting active and strategic sales activities to expand new orders, further optimizing workforce allocation, thoroughly pursuing productivity and implementing budget controls for major expenses.」
The company added further optimization of workforce allocation and continued cost and productivity improvement measures, but its full-year operating loss was ¥268 million. - FY2022-Q3WorsenedAnnual report
「In terms of earnings, although the segment was profitable in the third-quarter accounting period, the cumulative nine-month segment loss (ordinary loss) was ¥133 million, compared with a segment loss (ordinary loss) of ¥127 million in the same period of the previous year.」
The automotive parts segment's cumulative nine-month loss widened from ¥127 million in the same period of the previous year to ¥133 million. Although the segment returned to profitability in the third quarter, its cost competitiveness and earnings improvement challenges worsened on a cumulative basis. - FY2022-Q2Losses continued due to supply shortages, despite improvement year on yearAnnual report
「In terms of earnings, for the same reasons, the segment loss (ordinary loss) was ¥152 million, compared with a segment loss (ordinary loss) of ¥194 million in the same period of the previous year.」
The automotive parts segment narrowed its loss from ¥194 million in the same period of the previous year to ¥152 million, but losses continued as lower orders resulting from shortages of semiconductors and parts supplied from Southeast Asia weighed on results. No new production-efficiency measures were described. - FY2021WorsenedAnnual report
「Accordingly, a key challenge in the automotive parts business is to reform its earnings structure by conducting active and strategic sales activities to expand new orders, while thoroughly pursuing productivity and implementing budget controls for major expenses.」
The company indicated that it would continue pursuing productivity and managing major expenses, but the automotive parts segment posted a full-year ordinary loss of ¥169 million and the company posted an operating loss of ¥261 million. - FY2021-Q3AdvancedAnnual report
「In the third-quarter accounting period, segment sales recovered to ¥1,480 million, or 95.2% of the level in the same period of the previous year, mainly due to the recovery in orders from SUBARU CORPORATION. The segment also posted an operating profit of ¥63 million, down 24.8% year on year, and ordinary profit of ¥66 million, down 27.5%. However, owing to a substantial decline in orders during the six-month cumulative period of the second quarter caused by the COVID-19 pandemic, cumulative nine-month sales were ¥3,263 million, down 26.0% year on year, and the segment recorded a loss (ordinary loss) of ¥127 million, compared with segment profit (ordinary profit) of ¥100 million in the same period of the previous year.」
The automotive parts segment posted operating profit of ¥63 million in the third quarter, narrowing its cumulative segment loss from ¥194 million at the end of the second quarter to ¥127 million. The improvement in earnings was mainly due to the recovery in orders, rather than specific new measures to improve production efficiency or expense management, and the segment remained loss-making on a cumulative basis. - FY2021-Q2WorsenedAnnual report
「In terms of earnings in the automotive parts segment, the substantial decline in sales resulted in a segment loss (ordinary loss) of ¥194 million, compared with segment profit (ordinary profit) of ¥7 million in the same period of the previous year.」
Due to lower sales of automotive parts, segment earnings deteriorated from a ¥7 million profit in the same period of the previous year to a ¥194 million loss. Together with the inability to absorb fixed costs, the challenges of improving earnings and cost competitiveness are reflected in the results. - FY2021-Q1WorsenedAnnual report
「Due to the impact of the COVID-19 pandemic, sales fell substantially and the company was unable to absorb fixed costs, including personnel expenses and depreciation, resulting in an operating loss of ¥212 million (operating loss of ¥4 million in the same period of the previous year).」
The company was unable to absorb fixed costs, including personnel and depreciation expenses, amid a substantial decline in sales, and its challenges in cost competitiveness and earnings improvement emerged as deterioration in earnings. - FY2020-Q3AdvancedAnnual report
「Segment sales were ¥4,407 million, up 9.4% year on year. In terms of earnings, sales exceeded plan and orders with high profit margins increased. In addition, substantial reductions in manufacturing expenses were achieved through initiatives including labor-saving measures, resulting in segment profit (ordinary profit) of ¥100 million, compared with a segment loss (ordinary loss) of ¥45 million in the same period of the previous year.」
The automotive parts segment increased high-margin orders and advanced labor-saving measures, substantially reducing manufacturing expenses. As a result, segment earnings turned from a ¥45 million loss in the same period of the previous year to a ¥100 million profit. - FY2020-Q2AdvancedAnnual report
「Segment sales were ¥2,851 million, up 16.8% year on year. In terms of earnings, as production improvements progressed, segment profit (ordinary profit) was ¥7 million, compared with a segment loss (ordinary loss) of ¥105 million in the same period of the previous year.」
Production improvements in the automotive parts segment progressed, improving segment earnings from a ¥105 million loss in the same period of the previous year to a ¥7 million profit. - FY2020-Q1AdvancedAnnual report
「In terms of profit and loss, net sales were broadly in line with plan. Although progress in improving production in the automotive parts segment and fixed-cost reductions following workforce reductions in the lighting equipment business resulted in performance exceeding the planned profit and loss, the company recorded an operating loss of ¥4 million (operating loss of ¥57 million in the same period of the previous year).」
Production improvements in the automotive parts segment progressed, narrowing the company's operating loss from ¥57 million in the same period of the previous year to ¥4 million. The effects of measures to strengthen cost competitiveness are reflected in the figures. - FY2019AdvancedAnnual report
「In the first half, costs significantly exceeded plan due to higher material costs in the automotive parts segment, increased logistics costs for inter-process pallets and other items, and higher labor costs due to excess staffing. In the second half, however, production improvements and reductions in major expenses improved the cost ratio by 2.1 percentage points from the previous fiscal year to 91.9%.」
Although excess costs remained in the first half, production improvements and reductions in major expenses were implemented in the second half, improving the cost ratio by 2.1 percentage points year on year. - FY2019-Q3WorsenedAnnual report
「Cost of sales substantially exceeded plan due to factors including higher material costs, increased logistics costs for pallets used between processes and higher labor costs resulting from excess staffing associated with the full model change of the Forester.」
In the automotive parts segment, higher material, logistics and labor costs due to excess staffing caused cost of sales to significantly exceed plan. Although the segment returned to profitability in the third quarter, its cost competitiveness challenges persist and have worsened. - FY2019-Q2WorsenedAnnual report
「Cost of sales substantially exceeded plan due to factors including material cost increases above estimates, higher logistics costs for pallets used between processes and higher labor costs resulting from excess staffing.」
In the automotive parts segment, material, logistics and labor costs exceeded estimates and plan, and cost pressures related to strengthening cost competitiveness have continued to worsen. - FY2019-Q1WorsenedAnnual report
「In terms of profit and loss, although net sales exceeded plan, cost of sales rose due to higher material costs in the automotive parts segment and increased costs for preparatory work associated with the full model change, resulting in an operating loss of ¥57 million (operating loss of ¥36 million in the same period of the previous year).」
Despite measures to strengthen cost competitiveness, cost of sales increased and the operating loss expanded due to higher material costs and increased preparation costs associated with a full model change. - FY2018WorsenedAnnual report
「Higher material costs due to the model change and the unsuccessful start-up of newly ordered parts resulted in substantial production scrap and higher costs, including outsourced processing fees, leading to a segment loss (ordinary loss) of ¥73 million, compared with segment income of ¥236 million in the previous fiscal year.」
While the company pursued productivity and expense management, higher material costs, an unsuccessful start-up, substantial production scrap and higher outsourced processing fees caused the automotive parts segment to deteriorate from income in the previous fiscal year to a loss of ¥73 million. - FY2018-Q3WorsenedAnnual report
「Material costs increased due to changes in ordered parts associated with the model change for the Impreza in the automotive parts segment, while the unsuccessful start-up of Levorg parts resulted in substantial production scrap and higher costs, including outsourced processing fees. In addition, sales in the proprietary products segment fell below plan and a substantial segment loss (ordinary loss) was recorded, resulting in an operating loss of ¥168 million, compared with operating income of ¥80 million in the same period of the previous year.」
Higher material costs, the unsuccessful start-up of Levorg parts, substantial production scrap and higher outsourced processing fees caused the operating loss to expand from ¥80 million in the same period of the previous year to ¥168 million. - FY2018-Q2WorsenedAnnual report
「Material costs increased due to changes in ordered parts associated with the model change for the Impreza in the automotive parts segment, while the start-up losses for Levorg parts resulted in higher costs, including outsourced processing fees. In addition, sales in the proprietary products segment fell below plan and a substantial segment loss (ordinary loss) was recorded, resulting in an operating loss of ¥133 million, compared with operating income of ¥37 million in the same period of the previous year.」
Despite existing measures to strengthen cost competitiveness, material costs increased due to the model change, while start-up losses on new parts and higher costs, including outsourced processing fees, caused the operating loss to expand substantially. - FY2018-Q1WorsenedAnnual report
「In terms of profit and loss, although net sales exceeded plan, rising material costs and personnel expenses, together with start-up losses on newly ordered products, resulted in an operating loss of ¥36 million (operating profit of ¥5 million in the same period of the previous year).」
While measures related to strengthening cost competitiveness continued, operating results deteriorated from the same period of the previous year due to higher material costs and labor expenses, as well as start-up losses on newly ordered products. - FY2017AdvancedAnnual report
「As profitability improved through a rigorous focus on productivity and reductions in major expenses in the automotive parts segment, operating income was ¥142 million, up 68.3% from the previous fiscal year.」
Operating income increased 68.3% from the previous fiscal year through a focus on productivity and reductions in major expenses. - FY2017-Q3AdvancedAnnual report
「As a result of efforts to reduce costs through establishing an appropriate staffing structure and rigorously managing the budget for major expenses, operating income was ¥80 million, up 56.1% year on year.」
The company continued to establish an appropriate staffing structure and manage the budget for major expenses, improving operating income to ¥80 million, up 56.1% year on year. - FY2017-Q2AdvancedAnnual report
「As a result of efforts to reduce costs through establishing an appropriate staffing structure and rigorously managing the budget for major expenses, operating income was ¥37 million, compared with an operating loss of ¥2 million in the same period of the previous year.」
As a cost reduction measure, the company specified establishing an appropriate staffing structure in addition to its existing management of major expenses, improving operating results from a loss in the same period of the previous year to operating income of ¥37 million. - FY2017-Q1AdvancedAnnual report
「As a result of efforts to reduce costs through improved production efficiency and rigorous budget management for major expenses, operating income was ¥5 million, compared with an operating loss of ¥36 million in the same period of the previous year.」
The company improved operating results from an operating loss of ¥36 million in the same period of the previous year to operating income of ¥5 million by improving production efficiency and managing major expenses. - FY2016First statedAnnual report
「Improving production efficiency and rigorously managing the budget for major expenses will be important challenges in enhancing cost competitiveness.」
The company is pursuing cost reductions by improving production efficiency and managing its budget.