Rising Material and Labor Costs and Losses on New-Order Product Launches

「中東情勢の悪化に起因する石油並びに、石油由来の各種原材料の供給懸念を発端とした予想を大幅に上回る世界的な価格上昇等の利益圧迫要因もあり」

「The segment loss (ordinary loss) was ¥195 million, compared with a segment loss (ordinary loss) of ¥68 million in the previous fiscal year, partly because of upfront investments in a 3,500-ton large resin molding machine to fulfill large orders and the reorganization of the plant layout to secure production lines in anticipation of increased production volumes.」

「損益面につきましては、前述の要因で受注が増加したものの、大口受注を踏まえた3,500トンの大型樹脂成形機の導入(能力増強投資)や、生産量増加を見据えた生産ライン確保のための工場レイアウト再編等の先行投資の影響もあり、セグメント損失(経常損失)は、195百万円(前年同期はセグメント損失(経常損失)68百万円)となりました。」

「In terms of profit and loss, in addition to the decline in orders in the automotive parts segment due to the factors described above, upfront investment, including preparations to install a 3,500-ton large-scale resin molding machine to support major orders and reorganize the factory layout to secure production lines in anticipation of higher production volumes, resulted in an operating loss of ¥218 million (operating loss of ¥77 million in the same period of the previous year).」

「The segment loss (ordinary loss) was ¥68 million, compared with segment profit (ordinary profit) of ¥28 million in the previous fiscal year, partly because of the impact of temporary declines in productivity and increased manufacturing costs during the plant reorganization period in preparation for 2 large orders secured for the following fiscal year and beyond, as well as other upfront investments.」

「Excess costs, including labor costs during the line stoppage described above, and upfront investment in materials, labor and other expenses associated with launching multiple parts for new vehicle models 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.」

「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.」

「Despite higher electricity and raw material prices, segment profit (ordinary profit) was ¥84 million, up 4.7% year on year, owing to productivity improvements, including more appropriate personnel allocation and lower logistics costs, as well as the successful implementation of appropriate price pass-through.」

「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.」

「Segment revenue was ¥4,563 million, up 28.0% year on year, as the impact of the semiconductor shortage gradually eased, orders increased, and appropriate price pass-through measures in response to soaring raw material prices proved effective. Despite higher raw material and electricity prices, productivity improved through optimal staffing and efficient management of logistics costs, and appropriate price pass-through measures 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.」

「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.」

「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.」

「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.」

「In addition to the impact of reduced automobile production caused by the global semiconductor shortage and shortages of parts supplied from Southeast Asia, there are concerns about rising raw material prices due to the situation in Ukraine and other factors,」

「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.」

「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.」

「Although production improvements in the automotive parts division and fixed-cost reductions associated with workforce reductions in the lighting equipment business resulted in performance exceeding the planned profit or loss, the company recorded an operating loss of ¥4 million, compared with an operating loss of ¥57 million in the same period of the previous year.」

「Higher material costs associated with the model change, difficulties in launching new-order parts, substantial production scrap and increased costs such as outsourced work charges resulted in a segment loss (ordinary loss) of ¥49 million, compared with a segment loss of ¥73 million in the previous fiscal year.」

「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.」

「With the full model change of the Forester, which began mass production in July, material costs rose above estimates, logistics costs such as those for pallets between processes increased, and labor costs rose due to overstaffing, among other factors, causing cost of sales to substantially exceed the plan.」

「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).」

「Cost of sales increased due to a substantial rise in material costs in the automotive parts and in-house products divisions and higher overhead costs resulting from difficulties in smoothly launching new-order products in the automotive parts division. As a result, the cost ratio deteriorated by 7.4 percentage points from the previous fiscal year to 94.0%.」

「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.」

「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.」

「The operating loss was ¥36 million, compared with operating income of ¥5 million in the same period of the previous year, due mainly to higher material and labor costs and losses incurred during the launch of new-order products.」