Risk of losses due to price competition and quality defects
First written in FY2016. 15 of 22 entries say "Mitigated", first in FY2020-Q1. Latest entry: 2026-05-13.
No other company in this theme has enough history to compare yet.
- 2026-05-13MitigatedEarnings
「The balance of the product warranty provision at the end of the consolidated fiscal year was ¥1.5 billion.」
The balance of the product warranty provision related to quality defect remediation declined from ¥2.9 billion at the previous fiscal year-end to ¥1.5 billion. - FY2026-H1MitigatedAnnual report
「In the interim consolidated accounting period, the provision for product warranties covered all non-conforming products and products of unknown performance, meaning products for which it could not be confirmed whether performance inspection records had been altered, that had not been replaced as of 30 September 2025. This comprised 52 seismic-isolation oil dampers and 12 vibration-control oil dampers, for a total of 64 units. The provision includes the costs of replacement work for seismic-isolation and vibration-control oil dampers and business compensation. Its balance was ¥1.6 billion for the interim consolidated accounting period.」
Regarding the quality defect response, products not replaced or of unknown performance decreased from 399 units at the end of the previous fiscal year to 64, while the related provision for product warranties decreased from ¥2.9 billion to ¥1.6 billion. The response is progressing, but some products remain unreplaced. - FY2024-Q2MitigatedAnnual report
「In the second-quarter consolidated accounting period, the provision for product warranties covered all non-conforming products and products of unknown performance, meaning products for which it could not be confirmed whether performance inspection records had been altered, that had not been replaced as of 30 September 2023. This comprised 63 seismic-isolation oil dampers and 355 vibration-control oil dampers, for a total of 418 units. The provision includes the costs of replacement work for seismic-isolation and vibration-control oil dampers and business compensation. Its balance was ¥3.3 billion for the second-quarter consolidated accounting period.」
The number of products not replaced or of unknown performance remained at 418, unchanged from the previous quarter, while the balance of the provision for product warranties decreased from ¥3.9 billion to ¥3.3 billion. - FY2024-Q1MitigatedAnnual report
「In the first-quarter consolidated accounting period, the provision for product warranties covered all non-conforming products and products of unknown performance, meaning products for which it could not be confirmed whether performance inspection records had been altered, that had not been replaced as of 30 June 2023. This comprised 63 seismic-isolation oil dampers and 355 vibration-control oil dampers, for a total of 418 units. The provision includes the costs of replacement work for seismic-isolation and vibration-control oil dampers and business compensation. Its balance was ¥3.9 billion for the first-quarter consolidated accounting period.」
Products not replaced or of unknown performance related to the quality defect response decreased from 771 units in the previous quarter to 418, while the balance of the provision for product warranties decreased from approximately ¥8.6 billion to ¥3.9 billion, indicating progress. However, some products remain unreplaced. - FY2023-Q3MitigatedAnnual report
「In the third-quarter consolidated accounting period, the provision for product warranties covered all non-conforming products and products of unknown status that had not been replaced as of 31 December 2022, comprising 71 seismic-isolation oil dampers and 700 vibration-control oil dampers, for a total of 771 units. It includes the costs of manufacturing replacement seismic-isolation and vibration-control oil dampers, replacement work and compensation. The balance of the provision for product warranties was ¥8.6 billion for the third-quarter consolidated accounting period.」
Affected products not replaced or of unknown status decreased from 866 units in the previous quarter to 771, while the balance of the provision for product warranties decreased from ¥10.336 billion to approximately ¥8.6 billion, indicating progress in addressing the quality issue. However, some products remain unreplaced. - FY2023-Q2MitigatedAnnual report
「In the second-quarter consolidated accounting period, the provision for product warranties covered all non-conforming products and products of unknown status that had not been replaced as of 30 September 2022, comprising 100 seismic-isolation oil dampers and 766 vibration-control oil dampers, for a total of 866 units. It includes the costs of manufacturing replacement seismic-isolation and vibration-control oil dampers, replacement work and compensation. The balance of the provision for product warranties related to this matter was ¥10.336 billion for the second-quarter consolidated accounting period.」
Regarding the quality defect response, the number of affected products not replaced or of unknown status was 866, and the balance of the provision for product warranties was ¥10.336 billion, both down from the previous quarter. However, some products remain unreplaced. - FY2023-Q1MitigatedAnnual report
「The provision for product warranties covers all non-conforming products and products of unknown status that had not been replaced as of 30 June 2022, comprising 282 seismic-isolation oil dampers and 842 vibration-control oil dampers, for a total of 1,124 units. It includes the costs of manufacturing replacement seismic-isolation and vibration-control oil dampers, replacement work and compensation. The balance of the provision was ¥11.960 billion.」
Products not replaced or of unknown status related to the quality defect response totaled 1,124 units, and the balance of the provision for product warranties was ¥11.960 billion, both down further from the end of the previous fiscal year. The response is progressing, but some products remain unreplaced. - FY2022MitigatedAnnual report
「In the consolidated fiscal year, all non-conforming products and products of unknown status that had not been replaced as of 31 March 2022, comprising 286 seismic-isolation oil dampers and 898 vibration-control oil dampers, for a total of 1,184 units, were included in the provision for product warranties. The balance of the provision for product warranties related to this matter was ¥13.581 billion at the end of the consolidated fiscal year.」
Non-conforming products not replaced or of unknown status decreased from 2,341 units at the end of the previous fiscal year to 1,184, while the balance of the provision for product warranties decreased from ¥22.331 billion to ¥13.581 billion, indicating progress in addressing the quality issue. - FY2022-Q3MitigatedAnnual report
「In the third-quarter consolidated accounting period, all non-conforming products and products of unknown status that had not been replaced as of 31 December 2021, comprising 304 seismic-isolation oil dampers and 938 vibration-control oil dampers, for a total of 1,242 units, were included in the provision for product warranties. The balance of the provision for product warranties related to this matter was ¥14.982 billion for the third-quarter consolidated accounting period.」
Affected products not replaced or of unknown status decreased from 1,414 units in the previous quarter to 1,242, while the balance of the provision for product warranties decreased from ¥16.737 billion to ¥14.982 billion, indicating progress in addressing the quality issue. - FY2022-Q2MitigatedAnnual report
「In the second-quarter consolidated accounting period, all non-conforming products and products of unknown status that had not been replaced as of 30 September 2021, comprising 450 seismic-isolation oil dampers and 964 vibration-control oil dampers, for a total of 1,414 units, were included in the provision for product warranties. The balance of the provision for product warranties related to this matter was ¥16.737 billion for the second-quarter consolidated accounting period.」
Affected products not replaced or of unknown status decreased from 2,341 units at the end of the previous fiscal year to 1,414, while the balance of the provision for product warranties decreased from ¥22.331 billion to ¥16.737 billion, indicating progress in addressing the quality issue. - FY2022-Q1MitigatedAnnual report
「In the first-quarter consolidated accounting period, all non-conforming products and products of unknown status that had not been replaced as of 30 June 2021, comprising 533 seismic-isolation oil dampers and 1,247 vibration-control oil dampers, for a total of 1,780 units, were included in the provision for product warranties. The balance of the provision for product warranties related to this matter was ¥19.976 billion for the first-quarter consolidated accounting period.」
Affected products not replaced or of unknown status decreased from 2,341 units at the end of the previous fiscal year to 1,780, while the balance of the provision for product warranties decreased from ¥22.331 billion to ¥19.976 billion, indicating progress in addressing the quality issue. - FY2021MitigatedAnnual report
「In the consolidated fiscal year, all non-conforming products and products of unknown status that had not been replaced as of 31 March 2021, comprising 626 seismic-isolation oil dampers and 1,715 vibration-control oil dampers, for a total of 2,341 units, as well as all non-conforming products and products of unknown status among those exported to Taiwan that had not been replaced, were included in the provision for product warranties.」
Affected products not replaced or of unknown status decreased from 3,909 units previously to 2,341. However, unreplaced products and a ¥22.331 billion balance of the provision for product warranties remain. - FY2021-Q2MitigatedAnnual report
「In the second-quarter consolidated accounting period, all non-conforming products and products of unknown status that had not been replaced as of 30 September 2020, comprising 1,622 seismic-isolation oil dampers and 2,287 vibration-control oil dampers, for a total of 3,909 units, as well as all non-conforming products and products of unknown status among those exported to Taiwan that had not been replaced, were included in the provision for product warranties. The balance of the provision for product warranties related to this matter was ¥36.652 billion for the second-quarter consolidated accounting period.」
Affected products not replaced or of unknown status decreased from 4,664 units in the previous quarter to 3,909, and the balance of the provision for product warranties decreased from ¥41.835 billion to ¥36.652 billion. Replacement efforts are progressing, but some products remain unreplaced. - FY2021-Q1Replacement progress and increase in provisionAnnual report
「In the first-quarter consolidated accounting period, all non-conforming products and products of unknown status that had not been replaced as of 30 June 2020, comprising 2,316 seismic-isolation oil dampers and 2,348 vibration-control oil dampers, for a total of 4,664 units, as well as all non-conforming products and products of unknown status among those exported to Taiwan that had not been replaced, were included in the provision for product warranties. The balance of the provision for product warranties related to this matter was ¥41.835 billion for the first-quarter consolidated accounting period.」
While the number of affected products not replaced or of unknown status decreased from 8,420 units in the previous quarter to 4,664, the balance of the provision for product warranties increased from ¥34.332 billion to ¥41.835 billion, with progress in replacement efforts and an increase in the financial burden both noted. - FY2020-Q3Update on replacement progressAnnual report
「In the third-quarter consolidated accounting period, all non-conforming products and products of unknown status that had not been replaced as of 31 December 2019, comprising 4,891 seismic-isolation oil dampers and 3,529 vibration-control oil dampers, for a total of 8,420 units, ... The balance of the provision for product warranties related to this matter was ¥34.332 billion for the third-quarter consolidated accounting period.」
While the number of affected products not replaced or of unknown status decreased from 10,029 units in the previous quarter to 8,420, the balance of the provision for product warranties increased from ¥30.837 billion to ¥34.332 billion, with progress in the response and an increase in the financial impact both noted. - FY2020-Q2MitigatedAnnual report
「In the second-quarter consolidated accounting period, all non-conforming products and products of unknown status that had not been replaced as of 30 September 2019, comprising 6,263 seismic-isolation oil dampers and 3,766 vibration-control oil dampers, for a total of 10,029 units, as well as all non-conforming products and products of unknown status among those exported to Taiwan that had not been replaced, were included in the provision for product warranties. The balance of the provision for product warranties related to this matter was ¥30.837 billion for the second-quarter consolidated accounting period.」
Affected products not replaced or of unknown status decreased from 10,912 units in the previous quarter to 10,029, while the balance of the provision for product warranties decreased from ¥33.529 billion to ¥30.837 billion. Some products nevertheless remain unreplaced. - FY2020-Q1MitigatedAnnual report
「In the first-quarter consolidated accounting period, all non-conforming products and products of unknown status that had not been replaced as of 30 June 2019, comprising 7,052 seismic-isolation oil dampers and 3,860 vibration-control oil dampers, for a total of 10,912 units, as well as all non-conforming products and products of unknown status among those exported to Taiwan that had not been replaced, were included in the provision for product warranties. The balance of the provision for product warranties related to this matter was ¥33.529 billion for the first-quarter consolidated accounting period.」
The affected products not replaced or of unknown status decreased from 11,712 units and the ¥35.146 billion provision for product warranties at the end of the previous consolidated fiscal year to 10,912 units and ¥33.529 billion, respectively. However, some products remain unreplaced, and costs for product warranty measures and other expenses were recorded during the quarter. - FY2019WorsenedAnnual report
「In the consolidated fiscal year, all non-conforming products and products of unknown status that had not been replaced as of 31 March 2019, comprising 7,227 seismic-isolation oil dampers and 4,485 vibration-control oil dampers, for a total of 11,712 units, as well as all non-conforming products and products of unknown status among those exported to Taiwan that had not been replaced, were included in the provision for product warranties. The balance of the provision for product warranties related to this matter was ¥35.146 billion at the end of the consolidated fiscal year.」
The quality defect risk was disclosed at a scale of 11,712 affected products and a ¥35.146 billion provision for product warranties, making the financial impact of replacement and remediation concrete. - FY2019-Q3MaterialisedAnnual report
「It was discovered that some of the seismic-isolation and vibration-control oil dampers shipped by the Company had been installed in buildings even though, due to the alteration of performance inspection data, they did not comply with the performance evaluation standards certified by the Minister or fell outside customers' specified values,」
Regarding quality defects previously disclosed as a risk, it was confirmed that inspection record data for seismic-isolation and vibration-control oil dampers had been altered and that non-conforming products had been installed. The consolidated results were also affected by expenses recorded, including ¥25.8 billion in provision for product warranties. - FY2019-Q1MaterialisedAnnual report
「Following a serious occupational accident at an overseas site last fiscal year and a quality issue that developed into a recall, the Group has been working to ensure that safety comes first,」
The disclosure specifies that a quality issue developed into a recall last fiscal year, in addition to the quality defects previously identified as a risk. - FY2017RestatedAnnual report
「In terms of pricing, the Group faces intense price competition in both domestic and overseas markets, and customers constantly request cost reductions and lower prices. In terms of quality, ... if a quality defect were to occur, substantial costs could arise, including claims for damages from customers.」
The risks of price competition, customer demands for lower prices, and claims for damages arising from quality defects in critical functional components continue to be disclosed. - FY2016First statedAnnual report
「In terms of pricing, the Group faces intense price competition in both domestic and overseas markets, and customers constantly request cost reductions and lower prices. In terms of quality, the Group supplies important automotive components, including shock absorbers that support driving stability and power steering systems that assist steering effort. It also supplies major functional components, such as cylinders and motors that drive construction machinery and industrial vehicles. If a quality defect were to occur in products supplied by the Group, substantial costs could arise, including claims for damages from customers.」
The disclosure identifies customer demands for lower prices and damages and other costs arising from quality defects in critical functional components as risks.