Foreign Exchange Risk Associated with U.S. Dollar-Denominated Shipbuilding Contracts
First written in FY2016. 18 of 35 entries say "Materialised", first in FY2017-Q1. Latest entry: 2026-08-06.
The whole theme swung hardest in 2025: 71 of 159 companies on the "Worse" side.
- 2026-08-06MitigatedEarnings
「Foreign exchange loss 737 70」
Foreign exchange losses in the first quarter fell to ¥70 million from ¥737 million in the same quarter of the previous fiscal year. - FY2026MitigatedAnnual report
「The Company recorded a foreign exchange gain of ¥859 million as non-operating income.」
The Company recorded a foreign exchange gain of ¥859 million during the period, easing the adverse impact on earnings from the foreign exchange loss recorded in the previous year. - 2026-05-14MaterialisedEarnings
「The exchange rates during the consolidated fiscal year were as follows.」
The average rate used for revenue was ¥151.80 per U.S. dollar, and the period-end rate was ¥159.88, indicating that exchange-rate movements continued to affect business performance and financial figures during the period. - FY2026-H1MaterialisedAnnual report
「Although revenue and profit declined year on year due to the average exchange rate for revenue being approximately ¥2.5 stronger than in the same period of the previous year, as well as higher material and labor costs resulting from inflation and other factors, progress is in line with the initial plan.」
The average exchange rate for revenue was approximately ¥2.5 stronger year on year, and the impact of currency movements was reflected in the actual results as a factor behind the declines in revenue and profit. Meanwhile, the period-end rate reflected yen depreciation year on year, and the foreign exchange loss decreased from ¥1,029 million to ¥193 million. - FY2025MaterialisedAnnual report
「Foreign exchange losses」
Despite the ongoing trend of yen depreciation, the impact of foreign exchange on contract assets and other items was reflected in the actual results, and the Company recorded a foreign exchange loss of ¥792 million during the consolidated fiscal year. - FY2025-H1MaterialisedAnnual report
「Although a foreign exchange loss arose when contract assets were collected in the second quarter, the Company recorded a foreign exchange loss of ¥1,029 million for the interim period, resulting in ¥14,583 million,」
A foreign exchange loss arose when contract assets were collected, and the Company recorded a foreign exchange loss of ¥1,029 million for the interim period. The impact of currency movements was reflected in the actual results even during a period of yen depreciation. - FY2024MitigatedAnnual report
「For the consolidated fiscal year, revenue was ¥135,006 million and operating profit was ¥16,493 million. Ordinary profit was ¥20,007 million, including a ¥2,485 million foreign exchange gain resulting from yen depreciation.」
A foreign exchange gain of ¥2,485 million resulting from yen depreciation was recorded, easing during the period the pressure on earnings from yen appreciation that had emerged in the previous fiscal year. The risk of a sharp appreciation of the yen itself continues to be disclosed. - FY2024-Q3MitigatedAnnual report
「For the cumulative third quarter of the consolidated fiscal year, revenue was ¥96,955 million and operating profit was ¥11,687 million. Ordinary profit was ¥13,680 million, including a ¥920 million foreign exchange gain resulting from yen depreciation.」
The Company recorded a foreign exchange gain of ¥920 million due to yen depreciation, and no earnings impact comparable to the foreign exchange loss recorded in the same period of the previous year was recognized during the cumulative period. - FY2024-Q2MitigatedAnnual report
「For the cumulative second quarter of the consolidated fiscal year, revenue was ¥60,619 million and operating profit was ¥6,569 million. Ordinary profit was ¥9,058 million, due mainly to the recording of a ¥1,746 million foreign exchange gain resulting from yen depreciation.」
The Company recorded a foreign exchange gain of ¥1,746 million due to yen depreciation, easing during the quarter the pressure on earnings from yen appreciation that had emerged through the previous fiscal year. - FY2024-Q1MitigatedAnnual report
「Foreign exchange gain ¥1,610 million」
The sharp depreciation of the yen resulted in a foreign exchange gain of ¥1,610 million, easing during the quarter the pressure on earnings from yen appreciation that had emerged in the previous fiscal year. - FY2023MaterialisedAnnual report
「During the period, the yen's depreciation increased the yen equivalent of purchases from the Company by overseas subsidiaries, resulting in a foreign exchange loss of ¥1,607 million from the difference. Accordingly, the foreign exchange loss for the period was ¥789 million.」
While yen depreciation contributed to US dollar-denominated revenue and other items, a foreign exchange loss of ¥1,607 million arose from translation differences related to the consolidation accounting for overseas subsidiaries, and the impact of foreign exchange was reflected in the actual results. - FY2023-Q3MaterialisedAnnual report
「For the translation of the financial statements of overseas subsidiaries, revenue and expenses are translated at the average rate during the period. However, sales to these subsidiaries by the Company, which are purchases by the overseas subsidiaries, are translated at the rate prevailing on the transaction date, resulting in foreign exchange gains or losses arising from translation differences. During the period, the yen's depreciation increased the yen equivalent of purchases from the Company by overseas subsidiaries. As a result, a foreign exchange loss of ¥1,468 million arose from the difference, and the foreign exchange loss for the period was ¥529 million.」
While yen depreciation provided a tailwind for US dollar-denominated revenue and other items, a foreign exchange loss of ¥1,468 million arose from translation differences with overseas subsidiaries, resulting in a foreign exchange loss of ¥529 million. The impact of currency movements is reflected in the actual results. - FY2023-Q2MitigatedAnnual report
「Ordinary profit was ¥11,659 million, due mainly to dividend income of ¥907 million, equity in earnings of affiliates of ¥870 million and a foreign exchange gain of ¥596 million (the same period of the previous year saw an ordinary loss of ¥5,951 million),」
The Company recorded a foreign exchange gain of ¥596 million as the yen continued to depreciate, easing the impact of currency movements on earnings from the foreign exchange loss recorded in the same period of the previous year. [quantified=true, materialized=false] - FY2023-Q1MitigatedAnnual report
「Ordinary profit was ¥9,651 million, due mainly to recording dividend income of ¥901 million and a foreign exchange gain of ¥456 million (the same period of the previous year saw an ordinary loss of ¥5,519 million).」
The yen shifted from the appreciation phase seen in the same period of the previous year toward depreciation, and the Company recorded a foreign exchange gain of ¥456 million. The period-end rate also reflected yen depreciation of ¥26.10 from the end of the same period of the previous year, easing the impact of foreign exchange risk on earnings during the quarter. - FY2022-Q3MitigatedAnnual report
「Foreign exchange gain ¥312 million」
The Company recorded a foreign exchange gain of ¥312 million during the cumulative third quarter as the yen continued to depreciate. The period-end rate also weakened from ¥103.50 at the end of the same period of the previous year to ¥115.02, easing the impact of yen appreciation that had emerged in the previous fiscal year during the period. - FY2022-Q2MitigatedAnnual report
「Foreign Exchange Gains」
During the cumulative second quarter, the Company recorded a foreign exchange gain of ¥75 million, temporarily easing the realized impact of currency movements from the foreign exchange loss of ¥379 million recorded in the same period of the previous year. Revenue recognized in US dollars was US$230 million, at an average rate of ¥110.14 per US dollar. - FY2021MaterialisedAnnual report
「Revenue recognized in US dollars during the consolidated fiscal year was US$697 million, at an average rate of ¥106.76 per US dollar, accounting for approximately 75% of the Group's consolidated revenue.」
US dollar-denominated revenue accounted for approximately 75% of consolidated revenue, and the appreciation of the yen actually reduced revenue in the period. - FY2021-Q3MaterialisedAnnual report
「Foreign exchange losses as a non-operating expense increased from ¥211 million in the same period of the previous year to ¥865 million.」
The impact of foreign exchange fluctuations on US dollar-denominated transactions was reflected in the results for the cumulative quarter as foreign exchange losses of ¥865 million. - FY2021-Q2MaterialisedAnnual report
「For the cumulative second-quarter period, revenue recognized in US dollars was US$368 million, at an average rate of ¥106.86 per US dollar.」
While recognizing revenue denominated in US dollars, the company also recognized foreign exchange losses of ¥379 million as a non-operating expense, reflecting the impact of foreign exchange fluctuations in its results. - FY2021-Q1MaterialisedAnnual report
「Foreign exchange losses ¥96 million」
The company recognized foreign exchange losses of ¥96 million in the first quarter, reflecting the impact of foreign exchange fluctuations associated with US dollar-denominated vessel contracts in its results. Revenue recognized in US dollars was US$193 million, at an average rate of ¥107.65 per US dollar. - FY2020-Q3MaterialisedAnnual report
「An increase in the effective amount charged to the construction loss provision due in part to the US dollar exchange rate at the end of the third quarter being stronger against the yen than at the end of the same period of the previous year」
The stronger yen compared with the end of the same period of the previous year has re-emerged in the quarter's results as a factor behind the increase in the effective amount charged to the construction loss provision. - FY2020-Q2MaterialisedAnnual report
「The US dollar exchange rate applied in calculating the construction loss provision at the end of the second quarter was more than ¥4 stronger against the yen than at the end of the same period of the previous year」
The yen was more than ¥4 stronger than at the end of the same period of the previous year, and the impact of foreign exchange fluctuations re-emerged as a factor behind the substantial increase in the construction loss provision in real terms. - FY2020-Q1MaterialisedAnnual report
「The US dollar exchange rate at the end of the first quarter was just under ¥3 stronger against the yen than at the end of the previous consolidated fiscal year,」
The yen was just under ¥3 stronger than at the end of the previous consolidated fiscal year, and the impact of foreign exchange fluctuations re-emerged in the results as a factor behind the substantial increase in the construction loss provision and the operating loss. - FY2019MitigatedAnnual report
「For the consolidated fiscal year, revenue recognized in US dollars was US$865 million, at an average rate of ¥110.41 per US dollar.」
The average exchange rate was ¥110.41 per US dollar, and the weaker yen compared with the end of the previous period partly mitigated the impact of the stronger yen seen in the previous period. - FY2019-Q3MitigatedAnnual report
「In terms of earnings, the construction loss provision in the newbuilding business declined by ¥7,730 million from the end of the previous consolidated fiscal year as the yen weakened by just under ¥5 and new orders were also restrained following a review of the operating plan,」
The yen weakened by just under ¥5 against the end of the previous consolidated fiscal year, and foreign exchange gains were recognized, mitigating in the quarter the adverse impact on earnings from the stronger yen seen in the previous period. - FY2019-Q2MitigatedAnnual report
「In terms of earnings, the construction loss provision in the newbuilding business declined by ¥6,608 million year on year as the yen weakened by more than ¥5 against the end of the previous consolidated fiscal year and new orders were restrained due to adjustments to the operating plan,」
The yen weakened by more than ¥5 against the end of the previous period, partly mitigating in the quarter the adverse impact on earnings from the stronger yen. The average revenue recognition rate was ¥109.53 per US dollar. - FY2019-Q1MitigatedAnnual report
「For the cumulative first-quarter period, ordinary income was ¥1,434 million, compared with an ordinary loss of ¥1,522 million in the same period of the previous year, due to the average rate used to recognize revenue moving to just under ¥3 weaker against the yen than at the end of the previous consolidated fiscal year and the recognition of foreign exchange gains as non-operating income.」
The exchange rate moved in the direction of a weaker rather than stronger yen, and foreign exchange gains were recognized, mitigating in the quarter the deterioration in results caused by the stronger yen seen in the previous period. - FY2018MaterialisedAnnual report
「However, in addition to depressed vessel prices, the substantial steel price increases finalized in the fourth quarter and the stronger yen, with the exchange rate moving from ¥112.19 per US dollar at the end of the previous consolidated fiscal year to ¥106.24 at the end of the current consolidated fiscal year, led the company to review estimated costs for all vessels ordered by the group, including provisionally awarded vessels.」
The stronger yen affected the review of estimated costs for all vessels ordered and the increase in the construction loss provision, meaning that foreign exchange fluctuation risk was reflected in the results for the period. Full-year revenue recognized in US dollars was US$845 million, at an average rate of ¥111.26 per US dollar. - FY2018-Q3MitigatedAnnual report
「For the cumulative third-quarter period, revenue recognized in US dollars was US$657 million, at an average rate of ¥111.87 per US dollar.」
The company states that the yen remained weaker than in the same period of the previous year, and the adverse impact of the stronger yen on revenue did not emerge in the quarter. US dollar revenue and the average exchange rate were disclosed. - FY2018-Q2MitigatedAnnual report
「For the cumulative second-quarter period, revenue was ¥70,484 million, up 3.4% year on year, partly because the average rate used to recognize revenue was weaker against the yen than in the cumulative second-quarter period of the previous year.」
The average revenue recognition rate was weaker against the yen than in the same period of the previous year, partly mitigating the adverse impact on revenue from the stronger yen seen in the same period of the previous year. - FY2017MaterialisedAnnual report
「For the consolidated fiscal year, revenue recognized in US dollars was US$943 million, at an average rate of ¥106.57 per US dollar.」
Foreign exchange fluctuations related to US dollar-denominated contracts were reflected in the decline in full-year revenue, and the average exchange rate was also disclosed. - FY2017-Q3MaterialisedAnnual report
「For the cumulative third-quarter period, revenue was ¥103,841 million, down 7.3% year on year, due in part to sharp fluctuations in foreign exchange rates and changes to contractual terms, including delivery schedule adjustments at shipowners' request.」
Sharp fluctuations in foreign exchange rates directly affected the decline in revenue. Revenue recognized in US dollars was US$703 million, at an average rate of ¥105.77 per US dollar. - FY2017-Q2MaterialisedAnnual report
「For the cumulative second-quarter period, revenue was ¥68,166 million, down 3.9% year on year, partly because the average rate used to recognize revenue, including uncollected amounts, was ¥104.71 per US dollar due to the sharp appreciation of the yen, as well as changes to contractual terms, including delivery schedule adjustments at shipowners' request.」
The company explains that the sharp appreciation of the yen resulted in an average revenue recognition rate of ¥104.71 per US dollar and directly contributed to the decline in revenue. - FY2017-Q1MaterialisedAnnual report
「Due in part to the sharp appreciation of the yen, the assumed exchange rate for uncollected US dollar amounts was changed to ¥102.91 per US dollar, the rate at the end of the first quarter. As a result, the average rate used to recognize revenue was ¥105.04 per US dollar, and revenue was ¥35,715 million, down 2.6% year on year.」
The company states that the sharp appreciation of the yen directly affected the change in the revenue recognition rate and the decline in revenue. - FY2016First statedAnnual report
「The newbuilding business has many US dollar-denominated contracts, and approximately 2 to 3 years or longer is required from contract signing to completion and delivery. The company has established and operates foreign exchange handling rules to minimize foreign exchange risk, but a stronger yen may adversely affect future earnings and financial condition.」
The company identifies the long construction period for US dollar-denominated contracts as the background to its foreign exchange exposure and refers to management under its foreign exchange handling rules.