Order Fluctuations Driven by Economic Conditions, Vessel Capacity Supply and Demand, and Capital Investment Restraint
First written in FY2016. 14 of 29 entries say "Worsened", first in FY2017-Q1. Latest entry: FY2026.
Namura Shipbuilding moved to the "Worse" side of this theme in 2016, 5 years before the typical company in this theme (2021).
The whole theme swung hardest in 2020: 5 of 14 companies on the "Worse" side.
6 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Demand is expected to continue increasing as vessels completed in large numbers around 2010 are replaced with fuel-efficient vessels, clean-energy vessels and zero-emission vessels.」
Replacement demand for vessels built in large numbers and demand for environmentally compliant vessels provided a demand-expansion factor mitigating the risk of order fluctuations. - FY2025MitigatedAnnual report
「Japanese shipyards have secured order backlogs equivalent to approximately 3.5–4 years of work,」
Against a backdrop of recovering demand for newbuilds, the report explains that Japanese shipyards have secured order backlogs equivalent to 3.5–4 years of work, providing mitigation of the risk of order fluctuations. - FY2024MitigatedAnnual report
「The global newbuild market has seen improving demand as shipping market conditions recover, and demand is expected to expand further, including replacement demand for vessels built in large numbers around 2010.」
The outlook for expanding newbuild demand through recovering shipping market conditions and replacement demand was presented, providing greater mitigation of the risk of order fluctuations driven by economic conditions and the supply-demand balance for vessel capacity. - FY2024-Q2MitigatedAnnual report
「In the marine machinery segment, securing operating volume remained difficult as Japan's newbuild production continued at a low level for the second consecutive year. In the steel structures and bridges segment, progress on the relevant project was significantly delayed following the bridge girder collapse accident that occurred on 6 July. As a result, revenue for the cumulative second quarter of the fiscal year remained at ¥3,217 million, down 4.3% year on year.」
The report explains that the steel structures and machinery businesses continued to face low newbuild production volumes and project delays caused by the bridge girder collapse accident, while an increase in orders is expected in the marine machinery segment as the newbuild market improves. - FY2023MitigatedAnnual report
「Demand for newbuilds was on a recovery trend against a backdrop of strong shipping market conditions, and newbuild order prices also improved while the yen weakened. However, many uncertainties, including global inflation, remain, requiring continued disciplined management of the business.」
Shipping market conditions, demand for newbuilds and order prices showed signs of recovery, mitigating the previously existing risk of weak demand. However, uncertainty related to inflation and other factors remained. - FY2023-Q3WorsenedAnnual report
「Global demand for newbuilds remained at a low level in the second half of 2022 due to a mismatch between persistently high newbuild prices and charter rates,」
The report states that order volumes remained low due to a mismatch between newbuild prices and charter rates, with the risk of order fluctuations driven by the supply-demand balance for vessel capacity and market conditions including downside factors. - FY2023-Q2MitigatedAnnual report
「Against a backdrop of strong shipping market conditions, shipyards in various countries steadily accumulated orders, and the global order backlog averaged more than 3 years.」
Improved shipping market conditions and accumulated orders brought the global order backlog to an average of more than 3 years, providing greater mitigation of the risk of order fluctuations driven by economic conditions and the supply-demand balance for vessel capacity. ［quantified=true, materialized=false］ - FY2023-Q1MitigatedAnnual report
「Favorable business conditions continued for the maritime industries of each country, and the major shipbuilding countries of Japan, South Korea and China secured two to three years of work in hand.」
Against a backdrop of strong shipping market conditions, the order backlogs of major shipbuilding countries were reported to have recovered to 2–3 years of work, providing greater mitigation of the previously existing risk of order fluctuations driven by economic conditions and the supply-demand balance for vessel capacity. - FY2022-Q3MitigatedAnnual report
「Although the severe conditions caused by the COVID-19 pandemic gradually improved and signs of an economic recovery emerged, uncertainty remained due to the effects of a renewed spread of infections, supply-side constraints, downside risks related to raw material prices and volatility in the financial and capital markets.」
While signs of a recovery emerged from the economic deterioration caused by the pandemic, downside risks from a renewed spread of infections, supply constraints, raw material prices and the financial markets remained. - FY2022-Q2MitigatedAnnual report
「During the cumulative second quarter of the fiscal year, Japan's economy continued to recover, particularly in the materials and shipping industries, as the COVID-19 pandemic gradually subsided with the progress of vaccinations, although the pace of improvement slowed.」
While stating that the domestic economy and shipping industry continued to recover with the rollout of vaccinations, it also cites downside risks from supply chain disruptions, stagnation in the Chinese economy and a renewed spread of infections. - FY2022-Q1MitigatedAnnual report
「The global shipbuilding industry had experienced low operating rates for five years since 2016, with newbuild orders below completions. However, as the supply-demand balance for vessel capacity improved and shipping market conditions turned favorable, newbuild demand expanded sharply from the end of the previous year, particularly for containerships.」
The report states that demand for newbuilds expanded as the supply-demand balance for vessel capacity improved and market conditions turned favorable. Although uncertainty related to COVID-19 and other factors remained, signs emerged of mitigation in the previously persistent risk of weak demand. - FY2021MitigatedAnnual report
「Entering 2021, the business environment for shipping and shipbuilding improved markedly as the supply-demand balance for vessel capacity improved with the eventual recovery in seaborne cargo volumes.」
Although the risk of restrained investment due to COVID-19 and US-China tensions remained, seaborne cargo volumes and the supply-demand balance for vessel capacity began to improve in early 2021. - FY2021-Q3WorsenedAnnual report
「Due to the sharp downturn in the global economy caused by the COVID-19 pandemic and US-China tensions, shipping companies and shipowners in Japan and overseas restrained new investment. Ship prices therefore remained under severe pressure,」
The downturn in the global economy caused by the COVID-19 pandemic and US-China tensions led to restrained new investment by shipping companies and shipowners and continued pressure on ship prices, further worsening the order environment. - FY2021-Q2WorsenedAnnual report
「Due to the sharp downturn in the global economy caused by the COVID-19 pandemic and US-China tensions, shipping companies and shipowners in Japan and overseas restrained new investment. Ship prices therefore remained under severe pressure, and the Company recorded an operating loss for the cumulative second quarter of the fiscal year.」
The downturn in the global economy caused by the COVID-19 pandemic and US-China tensions affected operating income through restrained new investment by shipping companies and shipowners and continued pressure on ship prices. - FY2021-Q1WorsenedAnnual report
「During the three months ended the first quarter, the Japanese economy deteriorated rapidly because of the spread of COVID-19, and concerns remained over the risk of further downside in the domestic and overseas economies.」
The spread of COVID-19 caused the domestic economy to deteriorate rapidly, and a downside risk to the domestic and overseas economies was indicated. It also affected the decline in newbuilding orders and shipowners' reduced willingness to place orders. - FY2020-Q3WorsenedAnnual report
「During the nine months ended the third quarter, the Japanese economy was affected by a slowdown in overseas economies caused by factors including U.S.-China trade friction and the UK's EU withdrawal issue, and business sentiment deteriorated, particularly in manufacturing.」
The company explained that business sentiment, particularly in manufacturing, deteriorated because of U.S.-China trade friction, the UK's EU withdrawal issue and the slowdown in overseas economies. - FY2020-Q2WorsenedAnnual report
「During the six months ended the second quarter, exports declined and production stagnated, particularly in manufacturing, because of U.S.-China trade friction. Concerns about domestic demand following the consumption tax increase also remained, and uncertainty about the economic outlook intensified.」
The company explained that uncertainty about the economic outlook intensified because of lower exports and stagnant production caused by U.S.-China trade friction and concerns about domestic demand following the consumption tax increase. - FY2020-Q1WorsenedAnnual report
「During the three months ended the first quarter, domestic demand, including capital investment and personal consumption, remained solid, but external demand weakened, including stagnant exports because of U.S.-China trade friction, and the economy was beginning to lose momentum.」
While stating that domestic demand remained solid, the company explained that the economy was beginning to lose momentum because exports stagnated and external demand weakened as a result of U.S.-China trade friction. - FY2019WorsenedAnnual report
「The outlook for the global economy has deteriorated because of factors including U.S.-China trade issues, a slowdown in China, political and economic uncertainty in Europe, higher prices for crude oil and other raw materials, tightening financial markets, and inverted short- and long-term interest rates. Domestic companies have also seen declines in exports and production, increasing uncertainty about the outlook for both domestic and overseas economies.」
The company cited U.S.-China trade issues, the slowdown in China, conditions in Europe, higher raw-material prices and volatility in the financial markets as headwinds to the global economy and indicated increasing uncertainty. - FY2019-Q3WorsenedAnnual report
「During the nine months ended the third quarter, the Japanese economy continued on a moderate recovery trend, but headwinds to the global economy strengthened because of intensifying U.S.-China economic friction, a slowdown in China, and difficult negotiations over the UK's withdrawal from the EU.」
While indicating that the domestic economy remained on a recovery trend, the company identified U.S.-China economic friction, the Chinese economic slowdown, and the UK's withdrawal negotiations with the EU as new headwinds, stating that factors creating uncertainty for the global economy had intensified. - FY2019-Q2RestatedAnnual report
「During the six months ended the second quarter, the Japanese economy performed solidly, with continued improvements in corporate earnings and the employment and income environment and continued increases in capital investment and personal consumption. However, trade negotiations driven by U.S. unilateral policies were certain to affect not only China but also Japan, and concerns also remained over the impact of volatility in the financial and capital markets on the economy.」
While indicating that the domestic economy remained solid, the company continued to identify the spillover of trade negotiations driven by U.S. unilateral policies and volatility in the financial and capital markets as external risks. - FY2019-Q1RestatedAnnual report
「During the three months ended the first quarter, the Japanese economy continued on a moderate recovery trend, supported by improvements in corporate earnings and employment, but the outlook remained uncertain because of factors including U.S. unilateral policies and concerns over a slowdown in the Chinese economy.」
While the domestic economy remained on a moderate recovery trend, the company continued to indicate uncertainty about the outlook because of U.S. policies and concerns over the Chinese economy. - FY2018-Q2RestatedAnnual report
「During the six months ended the second quarter, the Japanese economy continued on a moderate recovery trend, but uncertainty about the outlook persisted amid concerns over political and economic uncertainty in Europe, the United States and East Asia.」
While the economy was on a moderate recovery trend, the company continued to indicate uncertainty surrounding the outlook because of political and economic uncertainty in Europe, the United States and East Asia. - FY2018-Q1WorsenedAnnual report
「During the three months ended the first quarter, the Japanese economy performed relatively steadily, but uncertainty about the outlook continued because of factors including the UK's EU withdrawal negotiations, the United States' move toward protectionist trade policies, and political conditions in China.」
Uncertainty continued because of the UK's EU withdrawal negotiations, U.S. protectionism and conditions in China, while global newbuilding orders also fell 30.3% year on year. - FY2017WorsenedAnnual report
「In the first half of the fiscal year, the yen appreciated and share prices fell against a backdrop including a slowdown in emerging economies and the UK's decision to leave the EU. In the second half, the outcome of the U.S. presidential election caused disruption in the foreign-exchange, economic and financial markets, and uncertainty about the outlook continued.」
Uncertainty surrounding economic and market conditions continued, including the slowdown in emerging economies, the UK's departure from the EU, and market disruption following the U.S. presidential election. - FY2017-Q3WorsenedAnnual report
「During the nine months ended the third quarter, the Japanese economy faced increasing uncertainty about its outlook, with numerous sources of concern including economic slowdowns in China and other emerging Asian and resource-producing economies, the UK's decision to leave the EU, and the impact of the change in the U.S. presidency.」
The slowdown in emerging Asian and resource-producing economies, the UK's decision to leave the EU, and the impact of the change in the U.S. presidency were added as sources of concern, indicating increased uncertainty about the outlook. - FY2017-Q2WorsenedAnnual report
「During the six months ended the second quarter, the Japanese economy remained subject to uncertainty. Amid concerns that the appreciation of the yen would weaken corporate earnings, downside risks to the economy remained, including a slowdown in China and other emerging Asian and resource-producing economies and the UK's decision to leave the EU.」
The company continued to identify the appreciation of the yen, economic slowdowns in emerging Asian and resource-producing economies, and the UK's decision to leave the EU as downside risks to the economy. Newbuilding orders also fell 64.4% year on year. - FY2017-Q1WorsenedAnnual report
「In addition to weak dry-bulk market conditions and container freight rates, this appears to reflect the backlash from rush demand for newbuildings in the previous year to avoid environmental regulations. Under these difficult conditions, shipyards in Japan, China and South Korea are being forced into fierce competition for limited demand.」
Newbuilding demand contracted and orders fell 56.9% year on year as a result of weak market conditions and freight rates and the backlash from rush demand. - FY2016First statedAnnual report
「Most of the products of the corporate group are individually ordered and built to meet the needs of specific customers, and demand is affected by economic conditions and business trends.」
The company explains that its made-to-order production model is a structural business characteristic and that performance fluctuates with economic conditions, vessel supply and demand, capital investment, public works and customer creditworthiness.