Cost Burden Associated with Preparations for the Launch of New Vehicles
First written in FY2017-Q2. 18 of 19 entries say "Materialised", first in FY2017-Q3. Latest entry: FY2025-H1.
Kasai Kogyo moved to the "Worse" side of this theme in 2017, 4 years before the typical company in this theme (2021).
1 other company's latest entry also says "Materialised".
- FY2025-H1MaterialisedAnnual report
「On the other hand, production-related costs and other expenses associated with launching new vehicles increased, resulting in a segment loss of ¥3,109 million, compared with a segment loss of ¥3,618 million in the previous interim consolidated accounting period.」
In North America, higher production-related costs and other expenses associated with launching new vehicles have actually arisen as a factor behind the segment loss. - FY2023MaterialisedAnnual report
「The operating loss was ¥2,190 million worse than planned due to higher costs, including labour, materials, logistics and electricity, resulting from rapid inflation.」
Continued increases in costs related to launching new vehicle models, together with higher costs caused by inflation, are factors behind the failure to meet the plan and the wider operating loss. - FY2023-Q3MaterialisedAnnual report
「In addition to higher raw material costs resulting from rising crude oil prices, higher logistics and labor costs due to changes in the external environment, and increased costs related to launching new vehicle models, the foreign exchange impact resulted in a segment loss of ¥12,166 million, compared with a segment loss of ¥8,484 million in the same quarter of the previous year.」
The continued increase in costs related to launching new vehicle models remains reflected in actual performance as a factor behind the wider loss in the North America segment. - FY2023-Q2MaterialisedAnnual report
「Revenue increased by ¥4,258 million, or 13.8%, year on year to ¥35,120 million due to higher production volumes at major customers and foreign exchange effects. However, in addition to higher material costs due to rising crude oil prices and higher logistics and labour costs resulting from changes in the external environment, increased costs related to launching new vehicle models and foreign exchange effects resulted in a segment loss of ¥8,616 million, compared with a segment loss of ¥4,597 million in the previous corresponding period.」
Higher costs related to launching new vehicle models are reflected in the wider loss in the North America segment. - FY2023-Q1MaterialisedAnnual report
「Sales increased by ¥2,381 million year on year to ¥17,265 million, up 16.0%, because of higher production volumes at major customers, new vehicle launches and foreign exchange. However, segment loss was ¥3,890 million because of higher raw material costs resulting from higher crude oil prices, higher logistics and labour costs due to changes in the external environment, increased costs related to new vehicle launches, and the impact of foreign exchange.」
Higher costs related to launching new vehicle models are reflected in the North America segment's loss of ¥3,890 million. - FY2022MaterialisedAnnual report
「As in Japan, the segment incurred a loss of ¥12,162 million due to the impact of reduced production caused by unexpected shutdowns and production adjustments at customers, as well as higher costs including labour, materials and logistics resulting from abnormal inflation and increased costs related to launching new vehicle models.」
The burden of costs related to launching new vehicle models is reflected in the North America segment's full-year loss of ¥12,162 million. - FY2022-Q2MaterialisedAnnual report
「As in Japan, sales declined sharply last year, but increased production volumes at major customers and the launch of new vehicle models resulted in revenue increasing by ¥10,210 million, or 49.4%, year on year to ¥30,861 million. However, higher costs related to new vehicle models and other factors resulted in a segment loss of ¥4,597 million, compared with a segment loss of ¥6,056 million in the previous corresponding period.」
In North America, costs related to new vehicle models continued to increase, resulting in a segment loss of ¥4,597 million despite higher revenue. - FY2021-Q3MaterialisedAnnual report
「(Europe) Despite the impact of COVID-19, revenue increased to ¥14,191 million, up ¥2,044 million, or 16.8%, from the same quarter of the previous year, due to the establishment of a new site in Germany (established in April 2019) and the launch of new vehicles in Slovakia. However, due to higher launch preparation costs and other factors, the segment loss was ¥5,269 million, a decrease in profit of ¥3,821 million from the same quarter of the previous year.」
Higher preparation costs for new vehicle launches and new facilities are reflected in the Europe segment's loss of ¥5,269 million. - FY2021-Q2MaterialisedAnnual report
「Despite the impact of COVID-19, revenue increased by ¥596 million, or 8.3%, year on year to ¥7,746 million due to the establishment of a new facility in Germany and the launch of new vehicles in Slovakia. However, increased launch preparation costs and other factors resulted in a segment loss of ¥3,526 million, a decrease in profit of ¥2,701 million year on year.」
Higher launch preparation costs associated with new vehicle launches in Germany and Slovakia are reflected in the Europe segment's loss of ¥3,526 million. - FY2021-Q1MaterialisedAnnual report
「(Europe) Despite the impact of COVID-19, revenue increased by ¥1,959 million, or 59.8%, year on year to ¥5,234 million due to the establishment of a new facility in Germany (established in April 2019) and the launch of new vehicles in Slovakia. However, increased launch preparation costs and other factors resulted in a segment loss of ¥1,024 million, compared with a segment loss of ¥131 million in the previous corresponding period.」
Higher launch preparation costs associated with the launch of new vehicles in Slovakia and elsewhere are reflected in the wider loss in the Europe segment. - FY2020-Q3MaterialisedAnnual report
「Operating income decreased by ¥2,317 million, or 32.2%, year on year to ¥4,874 million due to higher preparation costs for launching new vehicles and the impact of costs for establishing new facilities.」
Preparation costs for launching new vehicles and costs for establishing new facilities are reflected as factors behind the 32.2% year-on-year decline in operating income. - FY2020-Q2MaterialisedAnnual report
「Demand for passenger vehicles fell sharply in the US market due to a shift in demand toward SUVs, and production of vehicle models for which we received orders was also reduced. In addition, following the adoption of ASC 606, “Revenue from Contracts with Customers,” from the first quarter of the fiscal year, revenue and costs related to transactions involving supplied materials that qualify as repurchase agreements are presented on a net basis, reducing revenue by ¥4,929 million. As a result, revenue decreased by ¥6,278 million, or 12.7%, year on year to ¥43,284 million, while segment profit, partly due to higher new vehicle-related costs, decreased by ¥665 million, or 44.5%, year on year to ¥829 million.」
Higher new vehicle-related costs in North America are reflected as a factor behind the 44.5% year-on-year decline in segment profit. - FY2020-Q1MaterialisedAnnual report
「Segment profit decreased by ¥36 million, or 5.3%, year on year to ¥643 million due to higher new vehicle-related costs.」
Higher new vehicle-related costs in North America are reflected as a factor behind the 5.3% decline in segment profit. - FY2019-Q3MaterialisedAnnual report
「However, operating profit fell to ¥7,192 million, down ¥4,254 million, or 37.2%, from the same quarter of the previous year, due to higher preparation costs for new-vehicle launches and the impact of costs associated with establishing a new site.」
Preparation costs for launching new vehicles and costs for establishing new facilities are reflected as factors behind the 37.2% year-on-year decline in consolidated operating income. - FY2019-Q2MaterialisedAnnual report
「In addition to the waning effect of new vehicles on registered vehicle sales, lower production of export models caused revenue to decrease by ¥2,489 million, or 7.6%, year on year to ¥30,452 million. In addition to lower revenue, the burden of new vehicle launch costs resulted in a segment loss of ¥624 million, compared with segment profit of ¥1,096 million in the previous corresponding period.」
In Japan, the burden of new vehicle launch costs resulted in a segment loss. The company also states that North America saw higher labour costs due to securing personnel to gain proficiency in new vehicle launches, while Europe incurred higher costs for launching a new facility. - FY2019-Q1MaterialisedAnnual report
「Driven by the launch of new vehicles and mold sales, revenue increased to ¥4,531 million, up ¥520 million, or 13.0%, from the same quarter of the previous year. However, due to foreign exchange effects and higher costs at sites preparing for production, segment profit fell to ¥282 million, down ¥286 million, or 50.4%, year on year.」
Higher costs at facilities under preparation for production are reflected as a factor behind the 50.4% year-on-year decline in profit in the Europe segment. - FY2018-Q3MaterialisedAnnual report
「Due to lower production of vehicle models for which we received orders, revenue decreased by ¥3,545 million, or 4.6%, year on year to ¥73,602 million. In addition to the deterioration in profitability caused by lower production, increased preparation costs for launching new vehicles resulted in segment profit decreasing by ¥3,102 million, or 58.2%, year on year to ¥2,223 million.」
The increase in preparation costs for launching new vehicles is reflected in the 58.2% year-on-year decline in profit in the North America segment. - FY2017-Q3MaterialisedAnnual report
「Supported by firm sales trends at major customers, revenue increased by ¥3,992 million, or 8.8%, year on year to ¥49,141 million. However, partly due to the burden of launch preparation costs, segment profit decreased by ¥111 million, or 10.2%, year on year to ¥979 million.」
The burden of preparation costs for launching new vehicle models and other products is reflected in the 10.2% decline in profit in the Japan segment. - FY2017-Q2First statedAnnual report
「Operating income decreased by ¥929 million, or 11.0%, year on year to ¥7,516 million, despite the effects of rationalisation activities, due to preparations for launching new vehicle models and the impact of the stronger yen on foreign exchange.」
Preparations for launching new vehicle models were identified for the first time as one factor behind the decline in operating income, which decreased 11.0% year on year.