Failure to meet earnings targets due to weak demand in emerging markets
First written in FY2016. 3 of 7 entries say "Materialised", first in FY2018. Latest entry: FY2023-Q2.
Topy Industries,Limited moved to the "Worse" side of this theme in 2018, 1 year before the typical company in this theme (2019).
The whole theme swung hardest in 2024: 5 of 6 companies on the "Worse" side.
2 other companies' latest entry also says "Mitigated".
- FY2023-Q2MitigatedAnnual report
「Meanwhile, in the construction machinery industry, demand in the US and Southeast Asia remained firm. Demand for mining machinery also remained strong, driven by higher resource prices.」
Strong construction machinery demand in the US and Southeast Asia and mining machinery demand supported by higher resource prices continued, reducing the earnings risk from weak demand. quantified=false and materialized=false. - FY2023-Q1MitigatedAnnual report
「In the construction machinery industry, domestic demand declined, while demand remained firm in the US and Southeast Asia. Demand for mining machinery also remained strong, driven by higher resource prices.」
While domestic demand declined, construction machinery demand in the US and Southeast Asia and mining machinery demand remained strong. - FY2022-Q1MitigatedAnnual report
「Higher sales volumes of automotive wheels and undercarriage components for construction machinery resulted in net sales of ¥37,831 million, up 35.5% year on year, and operating profit of ¥979 million, compared with an operating loss of ¥1,826 million in the same period of the previous year.」
In response to the risk of deteriorating earnings due to weak demand in emerging markets and elsewhere, sales volumes and profits recovered in the automotive and industrial machinery components business. - FY2021-Q3MaterialisedAnnual report
「Regarding results for the nine-month period of the current fiscal year, demand recovered and earnings improved in the third quarter (October to December 2020), but the impact of the first half remained. Net sales were ¥161,030 million, down 20.5% year on year; operating loss was ¥2,491 million, compared with operating profit of ¥3,881 million in the same period of the previous year; ordinary loss was ¥1,033 million, compared with ordinary profit of ¥3,941 million; and net loss for the quarter attributable to owners of the parent was ¥2,165 million, compared with net income attributable to owners of the parent of ¥2,519 million.」
Regarding risks to the earnings targets under G&C 2021, cumulative net sales continued to decline, while operating loss, ordinary loss and net loss for the quarter attributable to owners of the parent continued to be recorded. - FY2020MaterialisedAnnual report
「Numerical targets Fiscal year ending March 2022 (target) Fiscal year ended March 2020 (actual) Operating margin 5.0% 1.1% Return on equity (ROE) 8.5% -4.2% Return on assets (ROA) 5.7% 1.4% D/E ratio 0.52 0.75 Operating profit ¥16,000 million ¥2,851 million Net income attributable to owners of the parent ¥11,000 million -¥4,497 million」
Quantitatively stated that actual results for the fiscal year ended March 2020 fell short of the targets for the fiscal year ending March 2022 under G&C 2021 in profitability, ROE, the D/E ratio, operating profit and net income. - FY2018MaterialisedAnnual report
「Operating margin 5.6% 3.5% Return on equity (ROE) 7.7% 5.2% Return on assets (ROA) 6.1% 3.7% D/E ratio 0.60 0.56 Net sales ¥250,000 million ¥230,462 million Operating profit ¥14,000 million ¥7,997 million Net income attributable to owners of the parent ¥8,500 million ¥5,500 million」
Quantitatively disclosed that actual results for the fiscal year ended March 2018 fell short of the targets for the fiscal year ending March 2019 under Growth & Change 2018 in net sales, operating profit and ROE, among other metrics. - FY2016First statedAnnual report
「Although we promptly implemented business-rebuilding measures in response to the sharp decline in demand for undercarriage components for construction machinery and wheels for mining machinery resulting from slower growth in emerging markets, including China, and weak resource prices, we were unable to meet our earnings targets.」
The company carried out business rebuilding, but ultimately failed to meet its earnings targets.