Risks associated with overseas operations as overseas expansion increases
First written in FY2016. 14 of 30 entries say "Worsened", first in FY2020-Q3. Latest entry: 2026-11-12.
Muro moved to the "Worse" side of this theme in 2020, the same year as the typical company in this theme.
The whole theme swung hardest in 2017: 2 of 6 companies on the "Worse" side.
4 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The automotive industry, the Company’s core market, remained generally firm, despite weak sales in the Chinese and Southeast Asian markets and the impact of U.S. tariffs, as production cuts associated with certification-related misconduct and other issues were resolved.」
Weak sales in the Chinese and Southeast Asian markets and the impact of U.S. tariffs became specific risks surrounding the overseas business. Meanwhile, the Company explained that production cuts associated with the certification-related misconduct issue had been resolved. - 2026-06-01WorsenedGeneral Meeting of Shareholders
「The difficult environment continued due to intensifying market competition centered on China, adjustments resulting from strategic changes and related organizational reviews in response to changes in the market environment, and the impact of constraints in the supply chain.」
Competition centered on China, adjustments associated with strategic changes, and supply chain constraints were identified as specific factors affecting overseas operations. - FY2026-H1WorsenedAnnual report
「The automotive industry, the Company’s core market, remained generally firm, despite weak sales in the Chinese and Southeast Asian markets and the impact of U.S. tariffs, as production cuts associated with certification-related misconduct and other issues were resolved.」
Weak sales in the Chinese and Southeast Asian markets and the impact of U.S. tariffs newly became specific risks surrounding the overseas business. Meanwhile, the Company explained that production cuts associated with certification-related misconduct and other issues had been resolved and that conditions overall remained firm. - FY2025-H1WorsenedAnnual report
「The global economy during the interim consolidated accounting period remained sluggish, with Russia’s invasion of Ukraine continuing, Israel expanding its offensive in the Middle East beyond Palestine to neighboring countries, the United States facing an unstable political situation ahead of its presidential election despite a resilient economy, and economic stagnation in China and Europe. Various problems showed no signs of improvement.」
The overseas business environment remains sluggish as the continuing situation in Ukraine, the expansion of military offensives in the Middle East, political instability in the United States, and economic stagnation in China and Europe have combined. - FY2024-Q3WorsenedAnnual report
「The global economy during the cumulative third quarter contracted period remained generally sluggish. As Russia’s invasion of Ukraine became protracted, Israel began retaliatory attacks on the Gaza Strip, destabilizing the Middle East and affecting the economy. The United States faced difficult policy decisions while continuing to curb inflation and looking ahead to next year’s presidential election, while economic slowdowns became more pronounced in Europe and China.」
The Company states that the global economy remains sluggish amid the protracted situation in Ukraine, growing instability in the Middle East, and economic slowdowns in Europe and China. - FY2024-Q2WorsenedAnnual report
「The global economy during the cumulative second quarter contracted period remained sluggish as negative factors continued, including the impact of the protracted war following Russia’s invasion of Ukraine, downward pressure on the economy from monetary tightening in Europe and the United States to curb inflation, and China’s economic stagnation. Meanwhile, concerns continued over the expansion and prolongation of conflicts, as Russia and North Korea moved closer and Palestine and Israel entered a state of war.」
The overseas business environment has become more unstable, with the Ukraine situation, monetary tightening in Europe and the United States, China’s economic stagnation, closer ties between Russia and North Korea, and the state of war between Palestine and Israel all cited. - FY2023-Q3WorsenedAnnual report
「The global economy during the cumulative third quarter contracted period remained relatively firm amid continued concerns about economic deterioration resulting from soaring resource prices associated with Russia’s invasion of Ukraine and monetary tightening in Europe and the United States to curb inflation. Meanwhile, China made a 180-degree shift away from its zero-COVID policy and turned toward prioritizing the economy, further clouding the outlook.」
In addition to Russia’s invasion of Ukraine, soaring resource prices and monetary tightening in Europe and the United States, China’s shift away from its zero-COVID policy has increased uncertainty surrounding the outlook for overseas operations. - FY2023-Q2WorsenedAnnual report
「The global economy during the cumulative second quarter contracted period remained sluggish due to factors including soaring resource prices associated with Russia’s invasion of Ukraine, concerns about economic deterioration resulting from monetary tightening in Europe and the United States to curb inflation, and economic stagnation caused by China’s continued zero-COVID policy.」
The external environment has deteriorated as Russia’s invasion of Ukraine, soaring resource prices, monetary tightening in Europe and the United States, and economic stagnation under China’s zero-COVID policy have combined to increase risks surrounding the overseas business. - FY2023-Q1WorsenedAnnual report
「The global economy during the cumulative first quarter contracted period remained unstable. Supply-chain disruptions and rising prices associated with Russia’s invasion of Ukraine were compounded by a lockdown in Shanghai lasting as long as 2 months under China’s zero-COVID policy, further intensifying supply-chain disruptions.」
The overseas business environment remains unstable as Russia’s invasion of Ukraine, China’s zero-COVID policy and the Shanghai lockdown, supply-chain disruptions and rising prices have combined. - FY2022WorsenedAnnual report
「Although securing profits has become more difficult as supply chains have been disrupted by the impact of COVID-19, Russia’s invasion of Ukraine and lockdowns under China’s zero-COVID policy, which have also made customer operating conditions unstable, the Company will conduct its business with the medium- to long-term goal of maintaining an operating margin of 8% or more.」
Risks surrounding the overseas business have increased as factors including lockdowns under China’s zero-COVID policy, Russia’s invasion of Ukraine and supply-chain disruptions have added to the instability of the external environment. - FY2022-Q3WorsenedAnnual report
「The global economy during the cumulative third quarter contracted period was on a recovery trend as vaccination against COVID-19 progressed, but recovery remained incomplete due to supply-chain disruptions and inflation. From the end of last year, the Omicron variant spread rapidly around the world, while geopolitical risks also increased as Russia appeared poised to invade Ukraine and North Korea frequently launched missiles. These developments may continue for some time, including by driving up resource prices, and conditions are likely to remain unstable.」
The Company states that the external-environment risks associated with overseas expansion remain significant, with supply-chain disruptions, inflation, the Omicron variant, heightened geopolitical risks and factors driving resource prices higher combining to sustain an unstable environment. - FY2022-Q2MaterialisedAnnual report
「The supply of automotive parts, including semiconductors and wire harnesses, was disrupted by production-site shutdowns and other effects of the spread of the novel coronavirus in Southeast Asia. Production was forced to undergo substantial cuts from late August, bringing operations to an abrupt halt.」
In the supply chain, including overseas sites, production-site shutdowns, disruptions in parts supplies and substantial production cuts actually occurred as infections spread in Southeast Asia. - FY2022-Q1MaterialisedAnnual report
「Shortages in the supply capacity for semiconductors and other raw materials and parts, and more recently factory shutdowns resulting from the spread of infections in Southeast Asia, disrupted the supply of parts and led to situations in which production adjustments became unavoidable. The outlook remains uncertain.」
Regarding infectious disease and supply-chain risks associated with overseas expansion, the Company states that factory shutdowns, disruptions in parts supplies and production adjustments actually occurred as infections spread in Southeast Asia. quantified: false, materialized: true. - FY2021MaterialisedAnnual report
「The proportion of sales and profit generated by overseas subsidiaries in consolidated results has been increasing, and the Group is affected by exchange-rate movements.」
Sales including those from overseas sites declined in North America, Europe and Southeast Asia, and the impact of infectious diseases and economic stagnation associated with overseas expansion was reflected in annual results. - FY2021-Q3MaterialisedAnnual report
「The first half was significantly affected by customer plant shutdowns and other factors associated with the novel coronavirus in both Japan and overseas, resulting in a decline.」
In the metal-related parts business, including overseas sites, lower sales caused by customer plant shutdowns and other factors actually affected results for the cumulative third quarter. - FY2021-Q2MaterialisedAnnual report
「Sales in this business for the cumulative second quarter of the current consolidated fiscal year were ¥7,061 million, down 23.7% year on year. Sales declined in both Japan and overseas as production cuts resulting from customer production stoppages and other factors related to COVID-19 weighed on results.」
At domestic and overseas sites, including those outside Japan, customer plant shutdowns and production cuts caused by infectious diseases actually occurred, resulting in a 23.7% year-on-year decline in sales of the metal-related parts business. - FY2021-Q2MaterialisedAnnual report
「Sales in this business for the cumulative second quarter of the current consolidated fiscal year were ¥7,061 million, down 23.7% year on year. Sales declined in both Japan and overseas as production cuts resulting from customer production stoppages and other factors related to COVID-19 weighed on results.」
At domestic and overseas sites, including those outside Japan, customer plant shutdowns and production cuts caused by infectious diseases actually occurred, resulting in a 23.7% year-on-year decline in sales of the metal-related parts business. - FY2021-Q1MaterialisedAnnual report
「The overseas subsidiaries were affected during January to March, the early stage of the spread of the novel coronavirus, and the decline in sales at each company was approximately 10% or less.」
In the overseas business, lower sales at overseas subsidiaries actually occurred as the novel coronavirus spread, with the decline at each company described as approximately 10% or less. - FY2020MaterialisedAnnual report
「The impact of the novel coronavirus is directly applicable to these risks, and in such cases it may affect the launch and operation of overseas businesses, as well as business performance and financial condition.」
The impact of the novel coronavirus was described as an event that had actually affected the launch and operation of overseas businesses and business performance, in relation to the previously anticipated risk of epidemics associated with overseas expansion. - FY2020-Q3WorsenedAnnual report
「However, the spread of the novel pneumonia in China since the beginning of this year has cast a major shadow, and its future impact is a concern.」
The Company states that the novel pneumonia in China had emerged as a specific event relating to the previously identified risks of epidemics associated with overseas expansion, and that its future impact was a concern. - FY2020-Q2MaterialisedAnnual report
「Operating income declined to ¥705 million, down 38.8% year on year, due to higher raw material costs, lower iron scrap prices, increases in labor costs and depreciation expenses, and deteriorating profitability at overseas subsidiaries, among other factors.」
Deteriorating profitability at overseas subsidiaries actually occurred as a factor reducing operating income, demonstrating the impact of overseas business risks on performance. - FY2020-Q1RestatedAnnual report
「No new business or other risks arose during the cumulative first quarter of the current consolidated fiscal year. In addition, there were no significant changes to the business and other risks described in the annual securities report for the previous fiscal year.」
The Company provides a comprehensive statement that there have been no new occurrences or significant changes in the risks associated with overseas operations. quantified: false, materialized: false. - FY2019RestatedAnnual report
「The proportion of the Group’s production and sales activities conducted outside Japan, including in North America and Southeast Asia, has tended to increase. Accordingly, business operations may be disrupted by events such as unpredictable natural disasters, terrorism, war, social unrest caused by other factors, industrial accidents, strikes and epidemics in the countries and regions where the Group operates.」
The Company continues to disclose the risks of disasters, conflicts, labor issues and epidemics in its operating regions associated with the expansion of overseas production and sales. - FY2019-Q3RestatedAnnual report
「No new business or other risks arose during the cumulative first three quarters of the current consolidated fiscal year. In addition, there were no significant changes to the business and other risks described in the annual securities report for the previous fiscal year.」
The previous assessment of risks associated with overseas operations remains in place, based on a comprehensive statement that there have been no new occurrences or significant changes in these risks as overseas expansion increases. - FY2019-Q2MaterialisedAnnual report
「Operating profit declined to ¥1,153 million, down 3.7% year on year, as the effects of higher sales and improvement initiatives were outweighed by increases in labor costs and depreciation, as well as deteriorating profitability at the North American subsidiary and other factors.」
Deteriorating profitability at a North American subsidiary actually occurred as a factor reducing operating income, demonstrating the impact of overseas business risks on performance. - FY2019-Q1RestatedAnnual report
「No new business or other risks arose during the cumulative first quarter of the current consolidated fiscal year. In addition, there were no significant changes to the business and other risks described in the annual securities report for the previous fiscal year.」
The Company states that there have been no newly occurring or significant changes in its overall business and other risks. It also indicates no change in the previous assessment of risks associated with overseas expansion. - FY2018RestatedAnnual report
「The proportion of the Group’s production and sales activities conducted outside Japan, including in North America and Southeast Asia, has tended to increase year after year. Accordingly, business operations may be disrupted by events such as unpredictable natural disasters, terrorism, war, social unrest caused by other factors, industrial accidents, strikes and epidemics in the countries and regions where the Group operates.」
The Company continues to disclose the risks of disasters, conflicts, labor issues and epidemics in its operating regions associated with the rising proportion of overseas production and sales. - FY2016First statedAnnual report
「The proportion of the Group’s production and sales activities conducted outside Japan, including in North America and Southeast Asia, has tended to increase year after year. Accordingly, business operations may be disrupted by events such as unpredictable natural disasters, terrorism, war, social unrest caused by other factors, industrial accidents, strikes and epidemics in the countries and regions where the Group operates.」
The Company identifies disasters, conflicts, labor issues and epidemics in its operating regions as risks associated with the rising proportion of overseas production and sales.