Disruption at Mexican production lines and higher manufacturing and logistics costs
First written in FY2017. 4 of 5 entries say "Mitigated", first in FY2018-Q3. Latest entry: FY2019-Q2.
0 other companies' latest entry also says "Mitigated".
- FY2019-Q2MitigatedAnnual report
「Although there were negative factors, including lower selling, general and administrative expenses, operating profit increased 60.8% year on year to ¥3,529 million, owing in part to the elimination of cost increases associated with higher production at the Mexico plant and the disappearance of temporary expenses related to the 2 acquisitions recorded in the same quarter of the previous year.」
The company stated that the cost increases associated with higher production at the Mexico plant had been eliminated, indicating progress in addressing the production and cost issues that emerged the previous year. - FY2019-Q1MitigatedAnnual report
「Although there were negative factors, including higher selling, general and administrative expenses, operating profit increased 71.7% year on year to ¥1,654 million, owing in part to the elimination of cost increases associated with higher production at the Mexico plant and the disappearance of temporary expenses related to the 2 acquisitions recorded in the same quarter of the previous year.」
The company stated that the cost increases associated with higher production at the Mexico plant had been eliminated, indicating progress in addressing the production and logistics cost issues that emerged the previous year. Complete resolution of the issue was not explicitly stated. - FY2018MitigatedAnnual report
「Profit contribution from establishing a production structure at the Mexico plant capable of keeping pace with increased orders」
In connection with the disruption at the Mexico plant caused by the rapid increase in orders, the company described the establishment of a production structure capable of supporting order growth and contributing to earnings. - FY2018-Q3MitigatedAnnual report
「In terms of profit, although cost improvements from stabilizing operations at North American production sites were achieved, the cost of sales ratio deteriorated due to higher material costs and one-time expenses at the two acquired companies.」
In connection with the disruption at the Mexico production line, North American production was reported to have stabilized and cost improvements to have materialized. The complete resolution of the issue was not indicated. - FY2017MaterialisedAnnual report
「The rapid increase in orders at Daido Metal U.S.A. INC. caused disruption at the production site, Daido Metal Mexico S.A. DE C.V., along with associated cost increases.」
Disruption at the Mexico production line and cost increases caused by the rapid increase in orders were identified as actual issues, and measures involving strengthened support and the normalization of logistics were presented.