Strengthening repair-vessel intake capacity, sales capabilities and cost competitiveness

「Although revenue increased compared with the same period of the previous fiscal year, when the volume of work generated for domestic naval-vessel repairs was low, profit declined.」

「The volume of work generated during the period for our core domestic naval-vessel repair business fell sharply from the previous fiscal year. Although we completed several large projects for U.S. Navy vessels and technically difficult large projects for commercial vessels, this was insufficient to offset the decline in annual operating volume.」

「The volume of work generated during the period for our core domestic naval-vessel repair business fell sharply from the previous fiscal year. Although we completed several large projects for U.S. Navy vessels and technically difficult large projects for commercial vessels, this was insufficient to offset the decline in annual operating volume.」

「Revenue for the six-month interim consolidated accounting period was ¥8,833 million, down 14.2% year on year, and operating profit was ¥712 million, down 55.6%. Although the company actively pursued large-scale repair projects for technically challenging commercial vessels and U.S. naval vessels because work volumes for core domestic naval vessels were expected to remain low in the first half of the fiscal year, these efforts were insufficient to offset the decline, resulting in lower revenue and profit year on year.」

「In addition to the smooth completion of core domestic naval vessel repair projects, 佐世保重工業株式会社 strengthened its business base by improving the technical proficiency and skills of personnel transferred from the Newbuilding Division to the Ship Repair Division. It actively pursued large-scale repair projects for technically challenging commercial vessels and U.S. military vessels. 函館どつく株式会社 completed a 14-month repair project for the Japan Coast Guard patrol vessel Echigo. As a result of increased operating volumes and improved profit margins at both companies, revenue and profit increased substantially from the previous fiscal year.」

「In the Ship Repair Business operated by 佐世保重工業株式会社 and 函館どつく株式会社, revenue for the six-month interim consolidated accounting period was ¥10,294 million, up 20.1% year on year, and operating profit was ¥1,602 million, up 147.4%. Work on core domestic naval and patrol vessels and research vessels progressed smoothly, while the companies also actively pursued technically challenging commercial vessel projects, resulting in substantial increases in revenue and profit.」

「At 佐世保重工業株式会社, renovation of the newbuilding dock for shared use in ship repair was completed, making it one of the largest ship-repair yards in Japan. Going forward, the company aims to build its presence by preparing to handle repairs of large U.S. Navy vessels and seeking orders for quay-side and docking work.」

「The Ship Repair Business operated by 函館どつく株式会社 and 佐世保重工業株式会社 strategically pursued repair work for specialized vessels such as research vessels, oceangoing commercial vessels such as LNG carriers, domestic vessels such as RO-RO ships, and fishing vessels, in addition to increased repair work for naval and patrol vessels. During the first nine months of the fiscal year, revenue increased 11.3% year on year to ¥12,725 million, and operating profit increased 65.8% to ¥1,094 million.」

「The Ship Repair Business operated by 函館どつく株式会社 and 佐世保重工業株式会社 actively pursued inspection and repair work for naval vessels, patrol vessels and research vessels, as well as repair work for commercial vessels such as LNG carriers and fishing vessels. During the first six months of the fiscal year, revenue was ¥8,573 million, up 8.9% year on year, operating profit was ¥647 million, up 39.6%, and the order backlog at the end of the second quarter was ¥9,456 million, up 28.2%. Personnel development and reinforcement also progressed at Dock No. 4 of 佐世保重工業株式会社, which was converted last autumn from a large-vessel newbuilding dock into a dock that can also be used for ship repair, making a significant contribution to the group's Ship Repair Business.」

「The Ship Repair Business operated by 函館どつく株式会社 and 佐世保重工業株式会社 generated revenue of ¥4,126 million, up 1.4% year on year, and operating profit of ¥491 million, up 62.5%, during the first three months of the fiscal year, as periodic inspection work on naval vessels progressed smoothly and profitability improved for intermediate inspection work on specialized vessels.」

「The Ship Repair Business operated by 函館どつく株式会社 and 佐世保重工業株式会社 benefited from the completion last October of renovation work at 佐世保重工業株式会社's Dock No. 4, formerly used for newbuilding, to enable shared use for ship repair. Both companies also actively pursued repair and conversion work for government vessels, general commercial vessels, workboats and fishing vessels, accurately addressing customer needs. As a result of improved capacity utilization and increased revenue from larger naval vessel projects and a broader range of vessel types, full-year revenue was ¥16,261 million, up 6.5% year on year, and operating profit was ¥991 million, up 110.8%.」

「The Ship Repair Business operated by 函館どつく株式会社 and 佐世保重工業株式会社 improved capacity utilization by actively pursuing repair and conversion work for government vessels and general commercial vessels, in addition to larger naval vessel projects and a broader range of vessel types. As a result, revenue for the first nine months of the fiscal year increased 24.0% year on year to ¥11,438 million, and operating profit increased 599.7% to ¥660 million. The business restructuring plan at 佐世保重工業株式会社 progressed smoothly. Repair capacity was substantially expanded, including through the completion last October of renovation work converting Dock No. 4, formerly used for newbuilding, into a dock that can also be used for ship repair. The transfer and training of personnel from the former Newbuilding Business Division to the Ship Repair Business Division also progressed steadily, and the company is seeking further business expansion together with 函館どつく株式会社.」

「At 佐世保重工業株式会社, renovation of Dock No. 4, formerly used to build new vessels, into a dock that can also be used for ship repair was completed in October this year, strengthening repair capacity. The transfer and training of personnel from the former Newbuilding Business Division to the Ship Repair Business Division are also progressing smoothly, and the company is seeking further business expansion together with 函館どつく株式会社.」

「At 佐世保重工業株式会社, the transfer and training of personnel from the former Newbuilding Business Division to the Ship Repair Business Division progressed smoothly. As a result of actively pursuing orders for patrol and other government vessels and general commercial vessels in addition to its core naval vessel work, the order backlog at the end of the first quarter was ¥7,950 million, up 102.1% year on year.」

「At 佐世保重工業株式会社, the Ship Repair Division is making steady progress in accepting and training personnel from the Newbuilding Division. The company is pursuing expansion at both companies through renovation work to allow docks used for newbuilding to be shared with ship repair, increased personnel, and synergies from marketing activities for private-sector customers conducted in cooperation with 函館どつく株式会社.」

「At 佐世保重工業株式会社, the Ship Repair Business accepted personnel from the Newbuilding Business Division, which was scheduled to be suspended in January 2022, and promoted higher facility utilization by increasing business personnel. The company also actively pursued orders for government vessels, including patrol vessels, and general commercial vessels, including LNG carriers for which demand is expected to increase. The division's order backlog at the end of the second quarter was ¥3,835 million, up 7.4% year on year.」

「Revenue was ¥3,458 million, up 49.3% year on year, and operating profit was ¥232 million, compared with an operating loss of ¥237 million in the year-earlier period, helped by active marketing at 函館どつく株式会社 and the completion of 2 periodic inspection projects for naval vessels at 佐世保重工業株式会社. The order backlog at the end of the first quarter was ¥3,933 million, down 19.7% year on year, but the company will seek to expand orders by increasing personnel and improving capacity utilization.」

「佐世保重工業株式会社 had previously missed order opportunities because of insufficient personnel despite receiving inquiries. Following the suspension of its newbuilding business, the company aims to expand the business by converting docks used for newbuilding, reinforcing related facilities, and strengthening its workforce and technical capabilities by accepting personnel from the newbuilding business. It will also pursue repairs of vessels operated by the adjacent U.S. Navy base and LNG carriers, for which demand is expected to increase.」

「With the suspension of 佐世保重工業株式会社's newbuilding business, we will strengthen and expand the Ship Repair Business as the company's core business.」

「During the first six months of the fiscal year, revenue increased 55.5% year on year to ¥6,071 million, but the operating loss widened to ¥118 million from ¥86 million because work volume and other factors in newly undertaken periodic inspection projects for specialized vessels substantially exceeded the estimates and assumptions made when they were priced and ordered.」

「The Ship Repair Business operated by 函館どつく株式会社 and 佐世保重工業株式会社 is actively pursuing repair work for government vessels, general commercial vessels, specialized vessels and fishing vessels, while keeping naval vessel work as its mainstay and leveraging the characteristics of its locations. During the first three months of the fiscal year, revenue was ¥2,317 million, down 1.4% year on year, but operating loss widened to ¥237 million from ¥15 million in the year-earlier period because some projects experienced a substantial increase in work volume and other factors beyond the estimates and assumptions made when they were priced and ordered.」

「The Ship Repair Business is actively pursuing repair work for government vessels, general commercial vessels, specialized vessels and fishing vessels, while keeping naval vessel work as its mainstay and leveraging the characteristics of its locations. During the first nine months of the fiscal year, revenue was ¥5,958 million, down 30.2% year on year, due to a decline in domestic naval vessel periodic inspections and other work completed during the period. Operating loss was ¥148 million, compared with operating profit of ¥224 million in the year-earlier period, mainly because of the revenue decline.」

「During the first six months of the fiscal year, revenue was ¥3,905 million, down 41.6% year on year, due to a decline in periodic inspections and other work on domestic naval vessels. Operating loss was ¥86 million, compared with operating profit of ¥332 million in the year-earlier period.」

「During the first three months of the fiscal year, revenue was ¥2,350 million, up 42.2% year on year, from periodic inspections and other work on small domestic naval vessels. However, provisions for low-margin general commercial vessel repair work and other factors resulted in an operating loss of ¥15 million, compared with operating profit of ¥147 million in the year-earlier period. The company believes it will be able to secure suitable projects for the full year.」

「During the fiscal year, large projects such as periodic naval vessel inspections declined. Although the company actively marketed repair work for government vessels, including those operated by the Japan Coast Guard, as well as passenger vessels and specialized vessels such as research vessels, this did not offset the decline in naval vessel operating volumes. Revenue was ¥12,530 million, down 20.9% year on year, and operating profit was ¥551 million, down 43.4%.」

「During the first nine months of the fiscal year, revenue was ¥8,538 million, down 19.5% year on year, and operating profit was ¥224 million, down 59.8%, because there were few large projects, including periodic inspections of naval vessels.」

「The Ship Repair Business, operated mainly by 佐世保重工業株式会社 and 函館どつく株式会社, is centered on naval vessel work while actively pursuing repair work for government vessels, general commercial vessels and specialized vessels by leveraging the characteristics of its locations and its technical capabilities. During the first six months of the fiscal year, revenue was ¥6,689 million, down 25.8% year on year, and operating profit was ¥332 million, down 30.5%, because naval vessel repair work at 函館どつく株式会社 was concentrated in the third quarter and thereafter.」

「During the first three months of the fiscal year, revenue was limited to ¥1,653 million, down 74.0% year on year, compared with the year-earlier period, when 函館どつく株式会社 completed a major naval vessel repair project, while operating profit was ¥147 million, down 74.5%. The Ship Repair Business faces substantial fluctuations in revenue by period, and smoothing operating levels is a challenge.」

「The Ship Repair Business operated by 佐世保重工業株式会社 and 函館どつく株式会社 is centered on naval vessel work, while actively pursuing repair work for government vessels, general commercial vessels and specialized vessels by leveraging the characteristics of its locations.」

「During the first nine months of the fiscal year, naval vessel work at 函館どつく株式会社 progressed smoothly. At 佐世保重工業株式会社, however, revenue fell 18.0% year on year to ¥10,610 million, partly because of a decline in major naval vessel projects, while operating profit fell 32.1% to ¥557 million.」

「During the first six months of the fiscal year, revenue was ¥9,009 million, up 20.5% year on year, and operating profit was ¥478 million, up 14.1%, helped by the completion at 函館どつく株式会社 of a major naval vessel repair project undertaken since the previous fiscal year and improved operating levels resulting from marketing efforts.」

「During the first three months of the fiscal year, a major naval vessel repair project that 函館どつく株式会社 had been conducting since the previous fiscal year was completed, resulting in revenue of ¥6,358 million, up 13.6% year on year, and operating profit of ¥576 million, up 14.4%.」

「Naval vessel work, the mainstay of the Ship Repair Business, is expected to increase as naval vessels are expanded and enlarged and undergo life-extension work, and we are working to strengthen our response capabilities in preparation for accepting such work. The Ship Repair Business experiences significant fluctuations in operating levels, and for general commercial vessels, where intense price competition continues, we will seek to expand orders and secure stable operating volumes by strengthening our competitiveness through enhanced marketing and technical capabilities and thorough cost reductions.」

「The Ship Repair Business, led by 佐世保重工業株式会社 and 函館どつく株式会社, is actively pursuing its core naval vessel work as well as repair work for general commercial vessels.」

「During the first six months of the fiscal year, 函館どつく株式会社 struggled because many projects were not scheduled for completion until the following period or later. At 佐世保重工業株式会社, however, naval vessel work progressed smoothly, resulting in revenue of ¥7,474 million, up 24.7% year on year, and operating profit of ¥419 million, up 13.1%.」

「At 佐世保重工業株式会社, naval vessel work progressed smoothly, generating revenue of ¥5,600 million, up 135.1% year on year, while operating profit was ¥504 million, up 2,270.0%.」

「Naval vessel work, the mainstay of the Ship Repair Business, is expected to increase as naval vessels become larger and undergo life-extension work, and we will strengthen our response capabilities to prepare for accepting such work. The Ship Repair Business experiences significant fluctuations in operating levels, and for general commercial vessels, where intense price competition continues, we will seek to expand orders and secure stable operating volumes by strengthening our marketing capabilities and competitiveness through cost reductions.」