Deteriorating profitability due to sluggish sales and unit price fluctuations for OEM parts in South Korea
First written in FY2019-Q1. 7 of 22 entries say "Mitigated", first in FY2022-Q2. Latest entry: FY2026.
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- FY2026MitigatedAnnual report
「As a result of increased sales of electrification-related products, including integrated thermal modules, and a ¥529 million decrease in retirement benefit expenses due to actuarial effects on retirement benefit obligations, compared with an additional expense of ¥811 million in the previous fiscal year, net sales amounted to ¥67,530 million, up 0.1% year on year, and segment profit amounted to ¥2,883 million, up 45.0%.」
Although declining sales of constant-velocity joints and other products and higher export costs remained, the South Korea segment’s profit increased 45.0% year on year due to increased electrification-related products and lower expenses. - FY2026-H1WorsenedAnnual report
「Although sales of electrification-related products such as integrated thermal modules in the new-vehicle parts market increased at consolidated subsidiary GMB KOREA CORP., sales of constant-velocity joints and tensioners, idlers and bearings in the overseas aftermarket declined. As a result, net sales were ¥32,574 million, down 5.4% from the same interim period of the previous year, and segment profit was ¥821 million, down 38.4%.」
In South Korea, the decline in sales of OEM and overseas aftermarket parts exceeded the increase in electrification-related products, and the segment reported lower revenue and profit. - FY2024-Q3MitigatedAnnual report
「As a result of increased sales in the new-vehicle parts market, mainly of electrification-related products such as electric water pumps, integrated thermal modules and electric oil pumps at consolidated subsidiary GMB KOREA CORP., net sales were ¥46,485 million, up 27.0% year on year, and segment profit was ¥1,794 million, up 282.8%.」
Compared with the past situation in which sluggish sales and deteriorating profitability due to unit price fluctuations for OEM parts in South Korea were prominent, revenue and profit increased due to higher sales of electrification-related products. - FY2024-Q2MitigatedAnnual report
「At consolidated subsidiary GMB KOREA CORP., sales in the new-vehicle parts market increased, driven mainly by products supporting vehicle electrification, such as electric water pumps and integrated thermal modules. As a result, revenue was ¥30,433 million, up 28.7% year on year, and segment profit was ¥1,086 million, up 101.8%.」
Compared with the past situation in which sluggish sales and deteriorating profitability due to unit price fluctuations for OEM parts in South Korea were prominent, revenue and profit continued to increase due to higher sales of electrification-related products. - FY2023MitigatedAnnual report
「At consolidated subsidiary GMB KOREA CORP., sales of electric water pumps increased and the range of products handled in the overseas aftermarket expanded. In addition, retirement benefit expenses declined in response to interest-rate conditions in Korea. As a result, revenue was ¥50,861 million, up 22.3% from the previous fiscal year, and segment profit was ¥2,505 million, up 58.7%.」
The situation shifted from one in which sluggish sales and deteriorating profitability due to unit price fluctuations for OEM parts in South Korea were prominent, and revenue and profit increased for the full year due to higher sales of electric water pumps and other products and lower expenses. - FY2023-Q3MitigatedAnnual report
「At consolidated subsidiary GMB KOREA CORP., sales of electric water pumps increased, and the range of products handled in the overseas aftermarket expanded. As a result, revenue was ¥36,599 million, up 21.0% year on year, and segment profit was ¥468 million, up 18.9%.」
The situation shifted from one in which sluggish sales and deteriorating profitability due to unit price fluctuations for OEM parts in South Korea were prominent, and revenue and profit continued to increase due to higher sales of electric water pumps and other products. - FY2023-Q2RestatedAnnual report
「At consolidated subsidiary GMB KOREA CORP., sales of electric water pumps increased, and the range of products handled in the overseas aftermarket expanded. As a result, revenue was ¥23,646 million, up 13.5% year on year, and segment profit was ¥538 million, up 38.5%.」
The continued shift from a situation in which sluggish sales and deteriorating profitability due to unit price fluctuations for OEM parts in South Korea were prominent to one in which revenue and profit increased due to higher sales of electric water pumps and other products was reported. - FY2022MitigatedAnnual report
「At consolidated subsidiary GMB KOREA CORP., sales of electric water pumps, valve spools and constant-velocity joints increased. As a result, revenue was ¥41,595 million, up 24.6% from the previous fiscal year, and segment profit was ¥1,579 million, compared with a loss of ¥407 million in the previous fiscal year.」
For the full year, a recovery in sales and a return to profitability were confirmed in response to the risk of sluggish sales and deteriorating profitability due to unit price fluctuations for OEM parts in South Korea. - FY2022-Q3RestatedAnnual report
「At consolidated subsidiary GMB KOREA CORP., sales of electric water pumps increased, while demand affected by COVID-19 had been recovering since the second half of the previous fiscal year. Sales of valve spools and constant-velocity joints in the new-vehicle parts market also increased. As a result, revenue was ¥30,238 million, up 29.5% year on year, and segment profit was ¥394 million, compared with a loss of ¥1,041 million in the same period of the previous year.」
The continued improvement from a loss to a profit due to the recovery in demand and increased sales, in response to the risk of sluggish sales of OEM parts in South Korea, was reported. - FY2022-Q2MitigatedAnnual report
「At consolidated subsidiary GMB KOREA CORP., sales of electric water pumps increased, while demand affected by COVID-19 had been recovering since the second half of the previous fiscal year. Sales of valve spools and constant-velocity joints in the new-vehicle parts market also increased. As a result, revenue was ¥20,827 million, up 39.2% year on year, and segment profit was ¥388 million, compared with a loss of ¥682 million in the same period of the previous year.」
Against the risk of sluggish sales of OEM parts in South Korea, segment results improved from a loss to a profit due to the recovery in demand and increased sales. - FY2021WorsenedAnnual report
「At consolidated subsidiary GMB KOREA CORP., production adjustments by automakers due to the spread of COVID-19 led to lower sales of new-vehicle parts such as constant-velocity joints and valve spools. Sales of tensioners, idlers and bearings in the overseas aftermarket also declined, and the decrease in revenue could not be fully offset by cost-cutting efforts, including temporary production stoppages and curbs on investment and other expenses. As a result, revenue was ¥33,371 million, down 10.8% from the previous fiscal year, and the segment posted a loss of ¥407 million, compared with profit of ¥836 million in the previous fiscal year.」
Declining sales and production adjustments for OEM parts and declining sales of overseas aftermarket parts compounded each other, causing the South Korea segment to deteriorate from profit in the previous fiscal year to a loss. - FY2021-Q3WorsenedAnnual report
「At consolidated subsidiary GMB KOREA CORP., production adjustments by automakers due to the spread of COVID-19 led to lower sales of new-vehicle parts such as constant-velocity joints and valve spools. Sales of tensioners, idlers and bearings in the overseas aftermarket also declined, and the decrease in revenue could not be fully offset by cost-cutting efforts, including temporary production stoppages and curbs on investment and other expenses. As a result, revenue was ¥23,354 million, down 14.5% year on year, and the segment posted a loss of ¥1,041 million, compared with profit of ¥165 million in the same period of the previous year.」
Declining sales and production adjustments for OEM parts in South Korea coincided with declining sales of overseas aftermarket parts. These factors could not be fully offset by cost reduction efforts, and results deteriorated from profit to a loss of ¥1,041 million. - FY2021-Q2WorsenedAnnual report
「At consolidated subsidiary GMB KOREA CORP., production adjustments by automakers due to the spread of COVID-19 led to lower sales of new-vehicle parts such as constant-velocity joints and valve spools. Sales of tensioners, idlers and bearings in the overseas aftermarket also declined, and the decrease in revenue could not be fully offset by cost-cutting efforts, including temporary production stoppages and curbs on investment and other expenses. As a result, revenue was ¥14,967 million, down 20.1% year on year, and the segment posted a loss of ¥682 million, compared with profit of ¥165 million in the same period of the previous year.」
In addition to declining sales and unit price and cost pressures for OEM parts in South Korea, production adjustments due to COVID-19 and a contraction in the aftermarket market compounded the impact, resulting in a deterioration from profit to loss. - FY2021-Q1RestatedAnnual report
「At consolidated subsidiary GMB KOREA CORP., sales of electric water pumps increased, but sales of valve spools in the new-vehicle parts market and tensioners, idlers and bearings in the overseas aftermarket declined due to the spread of COVID-19. As a result, revenue was ¥8,498 million, down 6.2% year on year. In terms of profit, efforts to strengthen competitiveness, including cost reductions, resulted in segment profit of ¥104 million, up 1,261.8%.」
Although the decline in sales of OEM and overseas aftermarket parts due to COVID-19 continued, profit recovered through sales of electric water pumps and cost reduction efforts. - FY2020Profit recovery despite lower salesAnnual report
「Although the company was affected by declining sales of water pumps in the South Korean OEM parts market and of tensioners, idlers and bearings in overseas aftermarket parts markets, as well as deteriorating profitability due to unit price fluctuations for OEM parts, sales of OEM parts such as electric water pumps and constant-velocity joints increased, the company worked to reduce costs, and the actuarial impact on retirement benefit obligations also declined, among other factors.」
Risks from declining sales and unit price fluctuations for OEM parts in South Korea continued, but profit recovered due to increased sales of electric water pumps and other products, cost reductions, and a decline in the impact of retirement benefit expenses. - FY2020-Q3Continued revenue decline and profit recoveryAnnual report
「At consolidated subsidiary GMB KOREA CORP., sales were affected by lower sales of water pumps in Korea's new-vehicle parts market and of tensioners, idlers and bearings in the overseas aftermarket, as well as deteriorating profitability caused by changes in new-vehicle part unit prices. However, sales of new-vehicle parts such as electric water pumps and constant-velocity joints increased, and the company pursued cost reductions. As a result, revenue was ¥27,303 million, down 4.3% year on year, while segment profit was ¥165 million, up 117.5%.」
Although declining sales and deteriorating profitability due to unit price fluctuations for OEM parts in South Korea continued, profit recovered year on year due to increased sales of electric water pumps and other products and cost reductions. - FY2020-Q2Continued declines in revenue and profit, with the magnitude of the declines narrowingAnnual report
「At consolidated subsidiary GMB KOREA CORP., although sales of new-vehicle parts such as electric water pumps and constant-velocity joints increased, lower sales of water pumps in Korea's new-vehicle parts market and of tensioners, idlers and bearings in the overseas aftermarket, deteriorating profitability caused by changes in new-vehicle part unit prices, and higher personnel expenses could not be fully offset by cost-cutting efforts. As a result, revenue was ¥18,737 million, down 2.7% year on year, and segment profit was ¥165 million, down 23.9%.」
Declining sales and deteriorating profitability due to unit price fluctuations for OEM parts in South Korea continued, but the year-on-year decline in revenue was 2.7% and the decline in profit was 23.9%. - FY2020-Q1Profit decline continuesAnnual report
「In terms of profit, as the effects of deteriorating profitability due to unit price fluctuations for OEM parts and other factors could not be fully offset by cost reduction efforts, net sales amounted to ¥9,058 million, down 0.5% from the same quarter of the previous year, and segment profit amounted to ¥7 million, down 86.4%.」
Deteriorating profitability due to unit price fluctuations for OEM parts in South Korea continued, and segment profit fell 86.4% year on year. - FY2019WorsenedAnnual report
「At consolidated subsidiary GMB KOREA CORP., although the company pursued market development for electric water pumps, the effects of lower sales of new-vehicle parts such as valve spools and deteriorating profitability caused by changes in new-vehicle part unit prices could not be fully offset by cost-cutting efforts. In addition, higher retirement benefit expenses due to actuarial effects on retirement benefit obligations and expenses related to preparations for the full-scale operation of a new site established in the previous fiscal year were incurred. As a result, revenue was ¥39,184 million, up 0.5%, and segment profit was ¥150 million, down 89.1%.」
Declining sales and deteriorating profitability due to unit price fluctuations for OEM parts in South Korea continued for the full year, and the decline in profit widened to 89.1%. - FY2019-Q3WorsenedAnnual report
「At consolidated subsidiary GMB KOREA CORP., the effects of lower sales of new-vehicle parts such as valve spools to Korean automakers and affiliated parts manufacturers, together with deteriorating profitability caused by changes in new-vehicle part unit prices, could not be fully offset by cost-cutting efforts. In addition, expenses related to preparations for the full-scale operation of a new site established in the previous fiscal year were incurred. As a result, revenue was ¥28,517 million, down 3.0%, and segment profit was ¥76 million, down 90.5%.」
Declining sales and deteriorating profitability due to unit price fluctuations for OEM parts in South Korea continued and could not be fully offset by cost reduction efforts. In addition, expenses related to a new site were incurred. - FY2019-Q2RestatedAnnual report
「At consolidated subsidiary GMB KOREA CORP., the effects of lower sales of new-vehicle parts such as valve spools to Korean automakers and affiliated parts manufacturers, together with deteriorating profitability caused by changes in new-vehicle part unit prices, could not be fully offset by cost-cutting efforts. As a result, revenue was ¥19,249 million, down 2.6% year on year, and segment profit was ¥218 million, down 69.2%.」
Declining sales and deteriorating profitability due to unit price fluctuations for OEM parts in South Korea continued, and the situation could not be fully offset by cost reduction efforts continued to be reported. - FY2019-Q1MaterialisedAnnual report
「At consolidated subsidiary GMB KOREA CORP., the effects of declining sales of OEM parts, such as valve spools, to South Korean automakers and affiliated parts manufacturers, as well as deteriorating profitability due to fluctuations in unit prices for OEM parts, could not be fully offset by cost reduction efforts.」
It was reported that declining sales and deteriorating profitability due to unit price fluctuations had actually occurred for OEM parts in South Korea and could not be fully offset by cost reduction efforts.