Design review and delivery delays for large U.S. railcar project
First written in FY2017-Q1. 3 of 6 entries say "Worsened", first in FY2017-Q2. Latest entry: FY2018-Q3.
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- FY2018-Q3MitigatedAnnual report
「As a result, no further losses are expected to arise in connection with the project.」
Following manufacturing by an alternative manufacturer and execution of the settlement agreement, the filing states that no further losses are expected to arise in connection with the project. - FY2018-Q2MaterialisedAnnual report
「The Board of Directors meeting held on 6 November 2017 resolved that the Company and Nissha MFG would enter into a settlement agreement with the Sumitomo Corporation Group, under which they would pay a total of US$328,942 thousand as a settlement amount and finally settle the project with the Sumitomo Corporation Group. The agreement was signed on the same date. As a result, the Company recorded a quarterly net loss attributable to owners of the parent of ¥15,446 million for the six months ended September 2017.」
The design-review and delivery-delay risk relating to the project materialized as an actual loss through the transfer of manufacturing to an alternative manufacturer and payment of a US$328,942 thousand settlement amount. The settlement agreement was executed, bringing the project to a final resolution. - FY2018-Q1WorsenedAnnual report
「As of the end of the first quarter of the current consolidated fiscal year, a loss of ¥22,118 million was reasonably estimated to arise. Of this amount, ¥12,194 million was offset against inventories related to the project, and ¥9,924 million was recognized as a provision for contract losses.」
The estimated loss increased from ¥20,407 million reported in the immediately preceding FY2017 Q3 to ¥22,118 million, while the provision for contract losses increased to ¥9,924 million. The amount of the loss remained subject to change depending on discussions with the customer. - FY2017-Q3WorsenedAnnual report
「For the large U.S. railcar project, a loss of ¥20,407 million was reasonably estimated as of the end of the third quarter of the current consolidated fiscal year against an order value of ¥33,752 million. Of this amount, ¥10,734 million was offset against inventories related to the project, and ¥9,673 million was recognized as a provision for contract losses.」
The estimated loss on the U.S. project reached ¥20,407 million, of which ¥9,673 million was recognized as a provision for contract losses. Technical issues also made performance as scheduled difficult, and discussions with the customer were under way. - FY2017-Q2WorsenedAnnual report
「The Group concluded that the design needed to be reviewed starting with the carbody structure, which forms the basic framework of the railcars. As a result, manufacturing costs are expected to increase further from the level previously anticipated. Accordingly, an additional provision was recognized for the reasonably estimable amount of the resulting loss.」
The scope of the design review expanded to the carbody structure, resulting in further expected increases in manufacturing costs and recognition of an additional provision. - FY2017-Q1First statedAnnual report
「The Group decided to review the design of a large railcar project for the U.S., for which sales had been scheduled from fiscal 2016 onward, after new design-related issues arose. As significant delivery delays are expected to occur in connection with the project, the Group calculated a reasonably estimable amount of the losses expected to arise in the future and recognized a provision in the previous fiscal year.」
The filing states that design-related issues actually arose, leading to a design review, expected delivery delays and recognition of a provision for losses.