Weak Order Intake in the Manufacturing Support Business and Declines in Revenue and Profit

「Manufacturing Contracting and Staffing Business: Although some production adjustments continued, revenue increased as semiconductor demand remained firm on expanding investment related to generative AI and data centers. Profit declined because of increased recruitment investment to meet demand.」

「As a result, revenue was ¥12,366 million, up 1.9% from the previous fiscal year, and segment profit was ¥477 million, up 6.4%.」

「Signs of a gradual recovery have emerged, including a recovery in production at major customers in the information and communications equipment field. In the semiconductor and electronic components fields, although the inventory adjustment phase has bottomed out, demand for personnel remains sluggish, partly due to the impact of U.S. trade policy. We will therefore continue to focus on strengthening our sales capabilities and acquiring new customers. As a result, revenue for the interim consolidated accounting period was ¥6,181 million, up 1.7% year on year, and segment profit was ¥294 million, up 37.3%.」

「As a result, revenue was ¥18,643 million, down 0.6% from the previous fiscal year, and segment profit was ¥362 million, compared with a segment loss of ¥269 million in the previous fiscal year.」

「As a result, revenue was ¥9,238 million, down 2.6% year on year, and segment profit was ¥83 million, compared with a segment loss of ¥160 million in the same period of the previous year. Revenue from this segment, excluding intersegment revenue, accounted for 42.7% of consolidated revenue, down 16.4 percentage points from the same period of the previous year.」

「As a result, revenue was ¥18,762 million, down 10.5% from the previous fiscal year, and the segment reported a loss of ¥269 million, compared with segment profit of ¥603 million in the previous fiscal year.」

「The resulting decline in working hours and increase in idle personnel due to the revisions to these production plans had a significant impact on both revenue and profit. As a result, revenue was ¥14,238 million, down 10.2% year on year, and the segment reported a loss of ¥174 million, compared with segment profit of ¥502 million in the same period of the previous year.」

「The resulting decline in working hours and increase in idle personnel due to the revisions to these production plans had a significant impact on both revenue and profit. As a result, revenue was ¥9,489 million, down 8.3% year on year, and the segment reported a loss of ¥160 million, compared with segment profit of ¥182 million in the same period of the previous year.」

「In the contract manufacturing and manufacturing staffing business and the staffing business for electrical and mechanical engineers, demand in the electronic components and devices field remained sluggish as the semiconductor market languished against a backdrop of slowing overseas economies. Demand in the information and communications equipment field also remained sluggish, due in part to longer replacement cycles for electronic devices such as smartphones and personal computers. Demand in the electrical machinery and equipment field remained firm despite the impact of the weak semiconductor market. Across the manufacturing sector, chronic labor shortages against a backdrop of intensifying recruitment competition and rising wages, as well as the recruitment and development of skilled personnel to meet semiconductor demand, became challenges. As a result, revenue was ¥4,913 million, down 3.6% year on year, and the segment reported a loss of ¥26 million, compared with segment profit of ¥39 million in the same period of the previous year.」

「As a result, revenue was ¥20,956 million, up 12.2% from the previous fiscal year, and segment profit was ¥603 million, compared with segment profit of ¥49 million in the previous fiscal year.」

「In the manufacturing outsourcing, manufacturing staffing and electromechanical engineering staffing businesses, production by existing customers in the electronic components and devices sector remained firm due to global semiconductor demand, and revenue performed strongly. Demand for IoT- and 5G-related products in the information and communications equipment sector remained firm amid the digital transformation of companies and educational institutions. Demand for DX-related products also remained firm in the electrical machinery and equipment sector. Across the manufacturing industry, chronic personnel shortages caused by increasingly intense competition for hires and higher wages, as well as the acquisition and development of skilled personnel to meet semiconductor demand, became challenges. As a result, revenue was ¥15,863 million, up 14.6% year on year, and segment profit was ¥502 million, up 313.4%.」

「In the manufacturing outsourcing, manufacturing staffing and electromechanical engineering staffing businesses, production by existing customers in the electronic components and devices sector remained firm due to global semiconductor demand, and revenue performed strongly. Demand for IoT- and 5G-related products in the information and communications equipment sector remained firm amid the digital transformation of companies and educational institutions. Demand for DX-related products also remained firm in the electrical machinery and equipment sector. Across the manufacturing industry, chronic personnel shortages caused by increasingly intense competition for hires and higher wages, as well as the acquisition and development of skilled personnel to meet semiconductor demand, became challenges. As a result, revenue was ¥10,351 million, up 14.3% year on year, and segment profit was ¥182 million, up 114.7%.」

「In the manufacturing outsourcing, manufacturing staffing and electromechanical engineering staffing businesses, production by existing customers in the electronic components and devices sector remained firm due to global semiconductor demand, and revenue performed strongly. Demand for IoT- and 5G-related products in the information and communications equipment sector remained firm amid the digital transformation of companies and educational institutions. Demand for DX-related products also remained firm in the electrical machinery and equipment sector. Across the manufacturing industry, chronic personnel shortages caused by increasingly intense competition for hires and higher wages, as well as the acquisition and development of skilled personnel to meet semiconductor demand, became challenges. As a result, revenue was ¥5,099 million, up 13.2% year on year, and segment profit was ¥39 million, down 43.7%.」

「In the manufacturing outsourcing, manufacturing staffing and electromechanical engineering staffing businesses, the electronic components and devices sector remained firm, supported by inventory build-up demand from manufacturers concerned about the global semiconductor shortage. Demand for IoT- and 5G-related products in the information and communications equipment sector remained strong amid the digital transformation of companies and educational institutions. The electrical machinery and equipment sector was supported by strong sales of related products resulting from the promotion of DX and GX (green transformation), as well as demand for game consoles and smart home appliances. On the other hand, shortages of components, particularly semiconductors, affected production plans across the manufacturing industry. Recruitment costs also increased because the company actively recruited amid intensifying competition for personnel as job openings increased across the industry. As a result, revenue was ¥18,674 million, up 8.7% year on year, and segment profit was ¥49 million, down 87.3%.」

「In the manufacturing outsourcing, manufacturing staffing and electromechanical engineering staffing businesses, demand for personnel in the electronic components and devices sector remained firm as manufacturers increased production in response to inventory build-ups prompted by concerns over COVID-19 and the global semiconductor shortage. However, recruitment costs increased because the company actively recruited amid increasingly difficult hiring conditions as job openings increased across the industry. The information and communications equipment sector was supported by demand for IoT- and 5G-related products but became unstable after being affected by production stoppages caused by shortages of components, particularly semiconductors. The electrical machinery and equipment sector was supported by demand for game consoles and smart home appliances compatible with smartphones arising from stay-at-home restrictions, but, like the information and communications equipment sector, faced concerns over component shortages. As a result, revenue was ¥13,842 million, up 9.8% year on year, and segment profit was ¥121 million, down 49.7%.」

「In the manufacturing outsourcing, manufacturing staffing and electromechanical engineering staffing businesses, the electronic components and devices sector remained firm as manufacturers increased production to meet demand for semiconductors, reflecting inventory build-ups prompted by concerns over COVID-19 and the global semiconductor shortage, as well as demand for automotive products accompanying the increasing use of electronic systems in vehicles. The company worked to secure personnel in response. The information and communications equipment sector was supported by demand for IoT- and 5G-related products, and further order growth is expected as the smartphone market recovers with improvements in the global semiconductor shortage. The electrical machinery and equipment sector was supported by demand for game consoles and smart home appliances compatible with smartphones, driven by stay-at-home restrictions. As a result, revenue was ¥9,052 million, up 9.9% year on year, and segment profit was ¥84 million, up 99.7%.」

「In the manufacturing outsourcing, manufacturing staffing and electromechanical engineering staffing businesses, the information and communications equipment sector performed strongly, driven by increased orders for IoT- and 5G-related products amid growing demand for remote work. The electronic components and devices sector also remained firm, supported by semiconductor demand arising from manufacturers' inventory build-up amid concerns over the global semiconductor shortage and demand for automotive products accompanying the increasing use of electronic systems in vehicles. As a result, revenue was ¥4,504 million, up 10.5% year on year, and segment profit was ¥70 million, compared with a segment loss of ¥64 million in the same period of the previous year.」

「Although orders for the business as a whole recovered to approximately the previous year's level in the second half, full-year orders remained weak due in part to delays in assigning new graduates caused by COVID-19, as well as lower orders and work stoppages resulting from overseas entry and exit restrictions. As a result, revenue was ¥17,174.598 million, down 2.1% year on year, and segment profit was ¥391.928 million, down 57.4%.」