Impact of the stronger yen on corporate earnings and consumption
First written in FY2017-Q1. 5 of 27 entries say "Restated". Latest entry: FY2026.
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- FY2026Slight decline in the overseas sales ratio and direct export ratioAnnual report
「Overseas sales accounted for 90.9% of the Group's consolidated net sales for the fiscal year ending March 2026. Direct exports also accounted for a high 51.4% of our sales.」
The overseas sales ratio edged down from 91.7% in the previous fiscal year to 90.9%, while the direct export ratio declined from 51.8% to 51.4%. - FY2026-H1Lower import costs resulting from the stronger yen and a reversal to foreign-exchange lossesAnnual report
「In addition, as a result of being affected by lower import costs resulting from the stronger yen compared with the same interim period of the previous year, sales were ¥9,120 million, up 19.9% year on year, and segment profit was ¥398 million, compared with a loss of ¥46 million in the same interim period of the previous year.」
The stronger yen was a positive factor for the Japan segment through lower import costs, while on a consolidated basis the result reversed from a foreign-exchange gain of ¥497 million to a foreign-exchange loss of ¥530 million. - FY2025WorsenedAnnual report
「Overseas sales accounted for 91.7% of the Group's consolidated net sales for the fiscal year ended March 2025. Direct exports also accounted for a high 51.8% of our sales.」
The overseas sales ratio rose from 87.2% in the previous fiscal year to 91.7%, while the direct export ratio increased from 48.0% to 51.8%, expanding foreign-exchange exposure. - FY2025-H1Decrease in Foreign-Exchange GainAnnual report
「In addition to recording ¥497 million in foreign-exchange gains, mainly valuation gains on foreign-currency-denominated assets and liabilities at overseas subsidiaries, foreign-exchange gains declined from the previous fiscal year, and ordinary profit was ¥1,387 million, down 6.8% year on year」
Foreign-exchange gains related to the weaker yen and other factors amounted to ¥497 million, down from ¥950 million in the same period of the previous year. - FY2024-Q2Decrease in foreign-exchange gains resulting from the weaker yenAnnual report
「In addition, foreign-exchange gains of ¥950 million, including valuation gains on foreign-currency-denominated assets resulting from the weaker yen at the fiscal year-end, contributed to ordinary profit of ¥1,488 million, down 28.1% year on year.」
Foreign-exchange gains resulting from the weaker yen continued, but declined from ¥1,968 million in the same quarter of the previous year to ¥950 million, becoming a factor in the decline in ordinary profit. - FY2024-Q1Foreign exchange gains from yen depreciation continuedAnnual report
「In addition, foreign-exchange gains of ¥665 million, including valuation gains on foreign-currency-denominated assets resulting from the weaker yen at the fiscal year-end, contributed to ordinary profit of ¥925 million, down 0.6% year on year, and net profit attributable to owners of the parent of ¥571 million, down 6.1%.」
The Company recorded foreign-exchange gains of ¥665 million as valuation gains on foreign-currency-denominated assets resulting from the weaker yen, while ordinary profit and net profit attributable to owners of the parent fell below the same period of the previous year. - FY2023Lower foreign-exchange exposure alongside the impact of the weaker yen and foreign-exchange gainsAnnual report
「Overseas sales accounted for 87.2% of the Group's consolidated net sales for the fiscal year ended March 2023. Direct exports also accounted for a high 48.0% of our sales. To address foreign-exchange fluctuations, we are working to reduce overall foreign-exchange risk by improving the balance of transaction currencies, increasing yen-denominated transactions, expanding overseas procurement, promoting the transfer of production overseas, and using forward exchange contracts.」
The overseas sales ratio was 87.2% and the direct export ratio was 48.0%, down from 88.3% and 50.3%, respectively, in the previous fiscal year, reducing exposure. Meanwhile, higher import costs resulting from the weaker yen continued, and the consolidated results included foreign-exchange gains of ¥1,442 million. - FY2023-Q3WorsenedAnnual report
「Although sales in the overseas aftermarket increased and exports of universal joints to the European new-vehicle parts market also rose, the Company was affected by higher import costs resulting from the weaker yen and persistently high global logistics costs. As a result, sales were ¥14,671 million, up 28.5% year on year, and segment profit was ¥274 million, down 40.2% year on year.」
Higher import costs resulting from the weaker yen continued, and although the Japan segment recorded higher sales, segment profit fell 40.2% year on year. - FY2023-Q2RestatedAnnual report
「Although sales in the overseas aftermarket increased and exports of universal joints to the European new-vehicle parts market also rose, the Company was affected by higher import costs resulting from the weaker yen and persistently high global logistics costs. As a result, sales were ¥9,115 million, up 21.3% year on year, and the segment recorded a loss of ¥9 million, compared with profit of ¥268 million in the same quarter of the previous year.」
Higher import costs resulting from the weaker yen continued to be cited as a factor behind the shift from profit to loss in the Japan segment. - FY2023-Q1WorsenedAnnual report
「Although sales in the overseas aftermarket increased and exports of universal joints to the European new-vehicle parts market also rose, the Company was affected by higher import costs resulting from the weaker yen and persistently high global logistics costs. As a result, sales were ¥4,336 million, up 27.2% year on year, and the segment recorded a loss of ¥16 million, compared with profit of ¥76 million in the same quarter of the previous year.」
The weaker yen was cited as a factor behind the shift from profit in the same quarter of the previous year to a ¥16 million loss in the Japan segment through higher import costs. - FY2022MitigatedAnnual report
「Overseas sales accounted for 88.3% of the Group's consolidated net sales for the fiscal year ended March 2022. Direct exports also accounted for a high 50.3% of our sales.」
The overseas sales ratio declined from 88.7% in the previous fiscal year to 88.3%, while the direct export ratio fell from 54.2% to 50.3%. Measures to mitigate foreign-exchange risk have continued. - FY2021WorsenedAnnual report
「Overseas sales accounted for 88.7% of the Group's consolidated net sales for the fiscal year ended March 2021. Direct exports also accounted for a high 54.2% of our sales.」
The overseas sales ratio rose from 87.9% in the previous fiscal year to 88.7%, while the direct export ratio increased from 52.7% to 54.2%, expanding foreign-exchange exposure. - FY2020Lower overseas sales and direct export ratiosAnnual report
「Overseas sales accounted for 87.9% of the Group's consolidated sales for the fiscal year ended March 2020. Direct exports also accounted for a high 52.7% of the Company's sales.」
The overseas sales ratio declined from 88.4% in the previous fiscal year to 87.9%, while the direct export ratio declined from 56.8% to 52.7%. Improving the balance of transaction currencies was noted as a new measure to mitigate foreign-exchange risk. - FY2020-Q3MaterialisedAnnual report
「In addition to a decline in exports of universal joints to Europe's new-vehicle parts market, the deterioration in the profitability of euro-denominated export transactions due to the stronger yen and weaker euro, as well as higher personnel expenses including ¥337 million in directors' retirement bonuses, resulted in sales of ¥9,818 million, down 8.8% from the same quarter of the previous year, and a segment loss of ¥154 million, compared with profit of ¥420 million in the same quarter of the previous year.」
In the Japan segment, the deterioration in the profitability of euro-denominated export transactions due to the stronger yen and weaker euro continued to be a factor behind the reported loss. - FY2020-Q2MaterialisedAnnual report
「In addition to a decline in exports of universal joints to Europe's new-vehicle parts market, the deterioration in the profitability of euro-denominated export transactions due to the stronger yen and weaker euro, as well as higher personnel expenses including ¥337 million in directors' retirement bonuses, resulted in sales of ¥6,642 million, down 6.8% from the same quarter of the previous year, and a segment loss of ¥163 million, compared with profit of ¥310 million in the same quarter of the previous year.」
Separately from the previously noted deterioration in Thailand's export profitability due to the weaker yen, the deterioration in the profitability of euro-denominated export transactions in the Japan segment due to the stronger yen and weaker euro was identified as an actual factor behind the loss. - FY2020-Q1MitigatedAnnual report
「While sales to China's new-vehicle parts market were at the previous year's level, improved profitability of dollar-denominated export transactions due to a stronger dollar and weaker yuan, among other factors, resulted in sales of ¥803 million, down 0.2% year on year, and segment profit of ¥4 million, compared with a loss of ¥32 million in the same quarter of the previous year.」
In China, the profitability of dollar-denominated export transactions improved due to the stronger dollar and weaker yuan, and segment profit turned positive from a loss in the same period of the previous year. - FY2019Lower overseas sales ratio and higher direct export ratioAnnual report
「Overseas sales accounted for 88.4% of the Group's consolidated sales for the fiscal year ended March 2019. Direct exports also accounted for a high 56.8% of the Company's sales.」
The overseas sales ratio declined from 88.6% in the previous fiscal year to 88.4%, while the direct export ratio rose from 56.5% to 56.8%. Mitigation measures involving yen-denominated transactions, overseas procurement, the transfer of production overseas, and foreign-exchange forwards also continued. - FY2019-Q2RestatedAnnual report
「In addition to sluggish sales of new-vehicle parts in South Korea and China and replacement parts in the U.S., the Group was affected by fluctuations in unit prices for new-vehicle parts in South Korea, higher steel prices in China, and deteriorating profitability in export transactions in China and Thailand.」
The effects on exchange rates and transaction profitability, including deteriorating profitability in export transactions in China and Thailand, continued to be noted. - FY2019-Q1MaterialisedAnnual report
「The Group was also affected by fluctuations in unit prices for new-vehicle parts in South Korea, higher steel prices in China, and deteriorating profitability in export transactions in China and Thailand.」
For export transactions in China and Thailand, deterioration in profitability related to exchange rates and other factors was noted as an actual factor affecting performance. - FY2018Lower foreign-exchange exposure ratios and continued mitigation measuresAnnual report
「Overseas sales accounted for 88.6% of the Group's consolidated sales for the fiscal year ended March 2018. Direct exports also accounted for a high 56.5% of the Company's sales. As measures against exchange-rate fluctuations, the Company is working to reduce overall foreign-exchange risk by increasing yen-denominated transactions, expanding overseas procurement, promoting the transfer of production overseas, and using foreign-exchange forwards, but sharp exchange-rate fluctuations may affect performance.」
The overseas sales ratio declined slightly to 88.6% from 89.7% in the previous fiscal year, and the direct export ratio declined to 56.5% from 56.8%. Mitigation measures involving yen-denominated transactions, overseas procurement, the transfer of production overseas, and foreign-exchange forwards continued to be noted. - FY2018-Q3RestatedAnnual report
「Although sales in Thailand increased, the deterioration in the profitability of yen-denominated export transactions to Japan due to the weaker yen and lower production of replacement water pumps for the U.S. market resulted in sales of ¥401 million, up 28.6%, and segment profit of ¥137 million, down 52.7%.」
The deterioration in the profitability of yen-denominated export transactions to Japan due to the weaker yen continued to be noted as a factor behind the decline in profit in the Thailand segment. For the consolidated group as a whole, valuation gains on foreign-currency-denominated assets and liabilities resulting from the weaker yen against the euro and U.S. dollar were also noted. - FY2018-Q2Valuation gains from the weaker yen and deteriorating profitability in ThailandAnnual report
「Ordinary profit was ¥1,725 million, up 79.5% year on year, owing in part to foreign-exchange gains on valuation of foreign-currency-denominated assets and liabilities resulting from the yen weakening against the U.S. dollar at the end of the second quarter. Although sales in Thailand increased, the deterioration in the profitability of yen-denominated export transactions caused by the weaker yen resulted in sales of ¥258 million, up 19.9%, and segment profit of ¥83 million, down 54.7%.」
It was noted that the weaker yen generated valuation gains on foreign-currency-denominated assets and liabilities for the consolidated group as a whole, while in Thailand it led to lower profitability and reduced profit on yen-denominated export transactions. - FY2018-Q1MaterialisedAnnual report
「Although sales in Thailand increased, the deterioration in the profitability of yen-denominated export transactions caused by the weaker yen resulted in sales of ¥137 million, up 30.9% year on year, and segment profit of ¥61 million, down 43.1%.」
In contrast to the previously noted effects of the stronger yen, the deterioration in the profitability of Thailand's yen-denominated export transactions due to the weaker yen was identified as an actual factor behind the decline in segment profit. - FY2017Quantification of foreign-exchange exposureAnnual report
「Overseas sales accounted for 89.7% of the Group's consolidated sales for the fiscal year ended March 2017. Direct exports also accounted for a high 56.8% of the Company's sales.」
Foreign-exchange exposure, including the risk associated with the stronger yen, was newly quantified as an 89.7% overseas sales ratio and a 56.8% direct export sales ratio. Mitigation measures involving yen-denominated transactions, overseas procurement, the transfer of production overseas, and foreign-exchange forwards were also noted. - FY2017-Q3RestatedAnnual report
「In addition to reviewing unprofitable transactions and pursuing cost reductions, the Group was affected by the appreciation of the yen, including lower import costs in Japan and improved export profitability at the Thai plant.」
The effects of the appreciation of the yen, including lower import costs in Japan and improved export profitability at the Thai plant, continued to be noted. - FY2017-Q2RestatedAnnual report
「In Japan, economic stagnation has continued amid deteriorating corporate earnings due to the stronger yen and declining personal consumption. The Group was also affected by the appreciation of the yen, including lower import costs in Japan and improved export profitability at the Thai plant.」
While the adverse effects of the stronger yen on corporate earnings and consumption continued to be indicated, its effects in reducing import costs in Japan and improving export profitability at the Thai plant were also reiterated. - FY2017-Q1First statedAnnual report
「In Japan, economic stagnation has continued amid concerns over deteriorating corporate earnings due to the rapid appreciation of the yen and declining personal consumption resulting from stock-price trends and other factors.」
While the stronger yen was noted as a risk, the text also indicated its effects in reducing import costs in Japan and improving export profitability at the Thai plant.