Fluctuating Market Demand and Intensifying Price Competition

「一方で、物価上昇の継続に加え、米国の通商政策、中国経済の低迷、原材料の調達環境や為替動向及び中東情勢等の地政学リスクにより、先行き不透明な状況が続いております。」

「As a result, sales in the Machinery Parts Business fell 4.1% year on year to ¥6,854 million, while operating profit fell 25.2% to ¥662 million.」

「Group net sales fell 4.1% year on year to ¥6,050 million, primarily reflecting the impact of lower sales in the Machinery Parts Business.」

「Looking ahead, there are concerns that US tariff policy could disrupt trade, investment and supply chains worldwide, as well as cause downside risks to Japan's economic growth. The outlook is expected to remain increasingly uncertain.」

「The semiconductor and electronic components market was on a recovery trend, supported by increased server demand resulting from the spread of generative AI and other factors, while the hygiene equipment and medical components markets also performed well against a backdrop of stronger demand. The industrial equipment and components market remained firm, supported in part by the recovery trend in corporate capital investment. Meanwhile, the automotive components market remained sluggish due to declining demand in North America and China. As a result, Group sales increased 11.3% year on year to ¥6,309 million.」

「Sales in the semiconductor and electronic components market declined as the resolution of excess inventories of hard disk drives used in data centers and elsewhere took longer than expected. The automotive components market was on a gradual recovery trend as automotive production increased, but sales remained below the level of the previous consolidated fiscal year and declined. … Group sales fell 9.3% year on year to ¥11,464 million.」

「Sales in the semiconductor and electronic components market declined as excess inventories of hard disk drives used in data centers and elsewhere remained elevated for an extended period. Sales in the automotive components market also declined, as inventory adjustments had not yet been completed despite the recovery in automotive production.」

「Meanwhile, in the semiconductor and electronic components market, inventory adjustments for hard disk drives continued longer than expected as data center investment, which had been active in recent years, paused, resulting in a substantial decline in sales. The automotive components market was recovering as the semiconductor shortage was resolved, but inventory adjustments continued in some areas, also resulting in lower sales. As a result, Group sales fell 14.2% year on year to ¥5,669 million.」

「In the markets targeted by the Group, the industrial equipment and components market performed well, partly because delivery schedules for certain industrial equipment were concentrated in the first quarter. However, the semiconductor and electronic components market remained affected by inventory adjustments from the second half of the previous consolidated fiscal year, while some inventory adjustments continued in the automotive components market even as automotive production recovered, resulting in sluggish growth.」

「The semiconductor and electronic components market remained affected by inventory adjustments and other factors from the second half of the current consolidated fiscal year.」

「Meanwhile, sales in the automotive components market declined due to semiconductor shortages and other factors. The hygiene equipment market remained sluggish, as the recovery in demand was limited.」

「The outlook for the economy remained uncertain due to concerns about further rises in raw material and energy prices caused by the prolonged Russia-Ukraine situation, anxiety over financial markets resulting from sharp foreign exchange fluctuations, and the possible renewed spread of infectious diseases.」

「Although the global economy is expected to recover gradually as COVID-19 repeatedly resurges, concerns are growing about a downside to economic activity caused by elevated resource and energy prices due to the Russia-Ukraine situation and volatility in financial and capital markets, increasing uncertainty.」

「During the nine-month period ended at the third quarter, the economic environment progressed amid a slowdown in the pace of recovery due to the impact of global semiconductor shortages on production and the spread of COVID-19 variants.」

「Among the markets targeted by the Group, the automotive parts and semiconductor and electronic components markets remained strong, while the industrial equipment market continued on a recovery trend. The hygiene products and medical components market recovered slowly and remained sluggish. As a result, the Group’s net sales increased 24.6% year on year to ¥5.865 billion.」

「The automotive components market remained strong, continuing from the second half of the previous fiscal year, while the semiconductor and electronic components market also remained above the previous year's level. The industrial equipment and components market continued to recover gradually, but the hygiene products equipment market remained sluggish despite showing slight signs of recovery, as the effects of restrained capital investment persisted.」

「However, the decline in performance caused by the rapid deterioration in market conditions was not fully offset, and Group sales fell 14.8% year on year to ¥9,894 million.」

「In the Group's priority markets, demand for automotive components and power distribution equipment recovered sharply in the third quarter as automobile production picked up. Demand for data centers in the semiconductor and electronic components market also remained strong. Meanwhile, the hygiene and medical market remained sluggish, heavily affected by restrained capital investment, while the industrial equipment market remained lackluster without a clear bottom.」

「In the Group's priority markets, the semiconductor and electronic components market remained firm, supported by continued strong demand from data centers. The automotive market was significantly affected by COVID-19 but gradually recovered toward the latter half of the second quarter as automotive production recovered. The hygiene and medical markets remained sluggish, as customers substantially restrained capital investment. As a result, Group sales fell 17.6% year on year to ¥4,705 million.」

「In the Group's priority markets, the semiconductor and electronic components market remained firm, but the automotive market was significantly affected by COVID-19 and remained sluggish. The hygiene and medical markets also experienced lower sales, particularly the hygiene market. As a result, sales fell 11.3% year on year to ¥2,495 million.」

「However, although the impact of the spread of COVID-19 on Group sales was limited, worsening market conditions, delays in developing new products and other factors caused sales to fall 8.3% year on year to ¥11,607 million.」

「During the nine-month period ended at the third quarter, the economic environment remained uncertain. Although domestic capital investment showed signs of recovery, business sentiment, particularly in manufacturing, deteriorated amid the consumption tax increase, declining production and consumption due to the prolonged US-China trade friction, and slowing overseas capital investment.」

「During the six-month period ended at the second quarter, the global economy remained uncertain, with US-China trade friction causing sluggish growth in capital investment in the United States and deteriorating performance at Chinese companies. In Japan, conditions remained such that downside economic risks required attention, owing to worsening business sentiment, particularly in manufacturing, and declining exports resulting from worldwide protectionist trade policies. Although we advanced measures to expand sales, including strengthening our sales capabilities through new marketing initiatives, overseas capital investment was curtailed more than expected and the economy was affected by the slowdown caused by US-China trade friction and other factors. As a result, sales fell 9.4% year on year to ¥5,711 million.」

「Although the Group worked to expand sales through new sales expansion activities and other measures, the impact of the economic slowdown gradually became apparent, including due to the US-China trade dispute and slowdowns in semiconductors and electronic components. As a result, net sales decreased 10.1% year on year to ¥2.811 billion.」

「However, orders for tooling products related to liquid crystals, which performed well in fiscal 2018, are expected to decline substantially. Orders for magnetic head substrates for hard disk drives (HDDs) have also paused, while demand for machinery and semiconductor-related products is trending downward.」

「Overseas markets remained generally firm, particularly in the United States, but the outlook remained uncertain due to the increased downside risk to the global economy from US-China trade friction, China's economic slowdown and other factors.」

「Overseas markets remained generally firm, particularly in Europe and the United States, but the outlook remained uncertain due to the increased downside risk to the global economy from US-China trade friction and other factors.」

「Although we had expected the HDD market to contract, demand increased more than expected, resulting in higher sales of magnetic head substrates for hard disk drives (HDDs) used in information equipment. As a result, sales in the machinery components business rose 30.4% year on year to ¥1,839 million, while operating profit increased 109.0% to ¥355 million.」

「Overseas sales of NT die cutters in the hygiene products segment increased due to expanded sales activities in Europe and other factors, but domestic sales remained sluggish as capital investment temporarily paused, leaving total sales slightly lower. Meanwhile, sales of magnetic head substrates for hard disk drives (HDDs) used in information equipment increased as demand recovered, and mold products for electronic components also performed well. As a result, sales in the machinery components business rose 13.8% year on year to ¥6,233 million, while operating profit increased 52.9% to ¥953 million.」

「NT die cutters for hygiene products recovered overall. Domestic sales were sluggish due to a temporary adjustment in capital investment, but overseas sales increased on expanded sales activities in Europe and other initiatives.」

「Sales of magnetic head substrates for hard disk drives (HDDs) used in information equipment increased as demand recovered, and mold products for electronic components also performed well. Sales of NT die cutters in the hygiene products segment declined in Japan as capital investment temporarily paused.」

「Sales of magnetic head substrates for hard disk drives (HDDs) used in information equipment increased as HDD demand recovered, while sales of equipment-related products also increased in Japan. Sales of NT die cutters in the hygiene products segment declined due to a temporary decrease in demand.」

「However, in addition to the review of the equipment business in China and the impact of foreign exchange rates, some major products were affected by market contraction, resulting in lower sales. As a result, Group sales fell 8.1% year on year to ¥10,124 million.」

「The NT die cutters in the hygiene products segment performed steadily, but sales of magnetic head substrates for hard disk drives (HDDs) used in information equipment declined as the HDD market contracted and remained sluggish. Sales of equipment-related products also declined following a review of the equipment business at the Chinese subsidiary. As a result, sales in the machinery components business fell 21.0% year on year to ¥3,866 million, while operating profit fell 43.0% to ¥437 million.」

「Sales of magnetic head substrates for hard disk drives (HDDs) used in information equipment declined as the HDD market weakened amid shrinking PC demand. Sales of equipment-related products also declined in overseas markets.」

「Sales of magnetic head substrates for hard disk drives (HDDs) used in information equipment declined due to sluggish PC demand and other factors, while sales of equipment-related products also declined both in Japan and overseas.」

「Economic conditions in the various markets where the Group sells its products, as well as intensifying price competition, may affect the Group's operating results and financial condition.」