Global Production Rationalization and Business Process Reform

「To strengthen sales functions in Europe, we began progressively transferring sales functions to DMEG, established in Germany in 2018, in order to consolidate European sales functions there. Currently, only sales functions for medium- and high-speed engine bearings for North America in the Marine and Energy business and certain other functions remain at DME.」

「At sites in Europe, where the business environment is challenging, we have already begun implementing reform measures, including transferring production equipment between certain sites within the group.」

「Sales declined from the previous interim consolidated accounting period due to the impact of yen appreciation against foreign currencies and lower orders resulting from weaker demand for Japanese automobiles in China. Although improving bottleneck processes increased production capacity, improved delivery times and reduced logistics costs, including air freight, the segment loss worsened from the previous interim consolidated accounting period because of lower revenue and delays in passing higher material and labor costs on to customers.」

「Since fiscal 2023, our group has pursued a Reform Plan, identifying areas requiring reform and working diligently on them. Under the new medium-term management plan, we will realize the benefits of these initiatives.」

「Operating profit increased 22.5% from the previous interim consolidated accounting period to ¥2,708 million, helped by ongoing cost improvement initiatives and profit improvements from sales price adjustments and price increases for unprofitable products.」

「Segment profit improved through the integration of sites and production rationalization efforts.」

「Under these conditions, the Group worked to strengthen its production structure, focused on improving productivity and reducing costs through rationalization, and undertook further Group-wide reductions in fixed costs and expenses.」

「Under these uncertain conditions, the Group worked to strengthen and rationalize its production structure so that it could respond flexibly to fluctuations in demand.」

「For components such as bent pipes, knock pins and NC-machined parts, we consolidated and reorganized domestic and overseas production sites to rationalize production.」

「We also worked to curb new capital spending and continued group-wide efforts to improve profitability and reduce fixed costs and expenses.」

「For components such as bent pipes, knock pins and NC-machined parts, overseas demand remained firm, but sales declined from the same quarter of the previous year due to a drop in domestic demand. Profit also declined, partly because the consolidation of domestic and overseas production sites to rationalize production increased temporary restructuring costs.」

「To achieve sustainable growth through corporate management with a medium- to long-term perspective, we will need to establish production, sales and technology sites that can respond to future market trends and changes, raise the productivity of our domestic and overseas subsidiaries to our own level, and maintain world-leading standards in product, design, manufacturing, production and development technologies.」

「Accordingly, throughout the period of the new medium-term management plan, we will devote our full efforts to these challenges so that we can respond flexibly to major changes in the business environment.」

「To achieve sustainable growth through corporate management with a medium- to long-term perspective, we will need to establish production and sales sites that can respond to future market trends and changes, raise the productivity of our domestic and overseas subsidiaries to our own level, and maintain world-leading standards in product, design, manufacturing, production and development technologies.」

「To achieve sustainable growth through corporate management with a medium- to long-term perspective, we will need to establish production and sales sites that can respond to future market trends and changes, raise the productivity of our domestic and overseas subsidiaries to our own level, and maintain world-leading standards in product, design, manufacturing, production and development technologies.」

「As the number of domestic and overseas manufacturing sites has increased, we are also working to build a rationalized global production system and review our business processes, including business process reengineering, in order to promote more efficient business operations.」

「To achieve sustainable growth through corporate management with a medium- to long-term perspective, we will need to establish production and sales sites that can respond to future market trends and changes, raise the productivity of our domestic and overseas subsidiaries to our own level, and maintain world-leading standards in product, design, manufacturing, production and development technologies.」

「Through this acquisition of shares, we believe that linking the overseas locations of the Company and the 飯野製作所 Group will enable us to strengthen our global operating capabilities through more efficient procurement and logistics, improved technological capabilities and production capacity through local personnel exchanges and the sharing of technology and know-how, and a more efficient operating structure.」

「To achieve sustainable growth through corporate management with a medium- to long-term perspective, we will need to establish production and sales sites that can respond to future market trends and changes, raise the productivity of our domestic and overseas subsidiaries to our own level, and maintain world-leading standards in product, design, manufacturing, production and development technologies.」

「To promote more efficient business operations, we will begin building a rationalized global production system and reviewing our business processes, including business process reengineering.」