Insufficient Fixed-Cost Recovery Due to Lower North American Sales
First written in FY2018. 10 of 19 entries say "Mitigated", first in FY2022-Q2. Latest entry: 2026-08-07.
Imasen Electric Industrial moved to the "Worse" side of this theme in 2018, 5 years before the typical company in this theme (2023).
The whole theme swung hardest in 2020: 7 of 20 companies on the "Worse" side.
9 other companies' latest entry also says "Mitigated".
- 2026-08-07MitigatedEarnings
「Operating income rose to ¥469 million, up 42.1% year on year, owing to the effects of structural reforms and improvements in rationalization.」
Despite lower sales in North America, structural reforms and improvements in rationalization increased operating income year on year. - FY2026MitigatedAnnual report
「Meanwhile, as a result of structural reforms, including the consolidation of our North American operations, as well as cost-reduction initiatives and rationalization, operating income rose to ¥508 million, up 15.1% year on year.」
Although revenue in the North American business declined, operating profit was ¥508 million through site consolidation, cost reductions and streamlining, demonstrating continued improvement against the risks of insufficient fixed-cost recovery and deteriorating profitability. - 2026-05-15MitigatedRevisions to earnings forecasts
「Meanwhile, as a result of structural reforms, including the consolidation of our North American operations, as well as cost-reduction initiatives and rationalization, operating income rose to ¥508 million, up 15.1% year on year.」
Despite lower sales in North America, the consolidation of operations, cost reductions, and rationalization increased operating income. - FY2026-H1MitigatedAnnual report
「In addition to foreign exchange effects, revenue declined to ¥13,811 million, down 14.2% year on year, due to the end of production for end-of-model-life products associated with changes in the production lineup. However, operating profit increased to ¥426 million, up 77.3% year on year, as a result of structural reforms through the consolidation of North American sites, cost-reduction initiatives and efforts to strengthen the business foundation.」
Although North America reported lower revenue, operating profit increased from ¥240 million in the same period of the previous year to ¥426 million through structural reforms from site consolidation, cost reductions and efforts to strengthen the business foundation, demonstrating continued improvement against the risks of insufficient fixed-cost recovery and deteriorating profitability. - FY2025MitigatedAnnual report
「In North America, revenue increased to ¥30,179 million, up 4.6% from the previous fiscal year, due to the foreign exchange impact of the weaker yen. Profitability also improved due to a better product mix, as well as cost improvements resulting from investments in production equipment automation and the consolidation of North American sites, resulting in operating profit of ¥441 million, compared with an operating loss of ¥1,244 million in the previous fiscal year.」
The North American business turned an operating loss of ¥1,244 million in the previous year into operating profit of ¥441 million through site consolidation, automation investment and product-mix improvements. - FY2025-H1MitigatedAnnual report
「In North America, net sales were ¥16,102 million, up 16.9% year on year, due to increased production and the foreign exchange impact of the weaker yen. In addition to the effect of higher sales, the elimination of labour-cost losses and cost-reduction initiatives resulted in operating profit of ¥240 million, compared with an operating loss of ¥1,293 million in the same period of the previous year.」
In addition to higher revenue, the effects of eliminating labor-cost losses and cost-reduction initiatives enabled the North American business to turn an operating loss of ¥1,293 million in the same period of the previous year into operating profit of ¥240 million. - FY2024-Q3North American loss reduction alongside wage increases and labor shortagesAnnual report
「Due to foreign exchange effects, revenue was ¥21,225 million, up 6.1% year on year. Although the loss narrowed as transportation costs resulting from the port disruptions in the same period of the previous year were eliminated, the operating loss was ¥1,148 million, compared with a loss of ¥2,062 million in the same period of the previous year, due to the effects of higher wages, labor shortages and other factors.」
The North American business eliminated the transportation costs resulting from the port disruptions, and the operating loss narrowed from ¥2,062 million to ¥1,148 million. At the same time, higher wages and labor shortages were identified as new factors putting pressure on profitability. - FY2024-Q2MitigatedAnnual report
「Due to foreign exchange effects, revenue was ¥13,772 million, up 9.1% year on year, while the operating loss was ¥1,293 million, compared with a loss of ¥1,689 million in the same period of the previous year.」
The North American business reported higher revenue due to foreign exchange effects, and the operating loss narrowed from ¥1,689 million in the same period of the previous year to ¥1,293 million. However, the operating loss continued. - FY2024-Q1MitigatedAnnual report
「Due to foreign exchange movements, revenue was ¥6,826 million, up 18.1% year on year, while the operating loss was ¥738 million, compared with a loss of ¥1,103 million in the same period of the previous year.」
Revenue in the North American business increased 18.1%, including the impact of foreign exchange movements, and the operating loss narrowed from ¥1,103 million in the same period of the previous year to ¥738 million. However, the operating loss continued. - FY2023WorsenedAnnual report
「In North America, revenue increased to ¥27,215 million, up 28.9% from the previous fiscal year, due to foreign exchange effects, but the operating loss was ¥2,716 million, compared with a loss of ¥975 million in the previous fiscal year, due to higher transportation costs resulting from port disruptions.」
Although the North American business reported higher revenue, the operating loss widened from ¥975 million in the previous fiscal year to ¥2,716 million due to higher transportation costs resulting from port disruptions. - FY2023-Q3WorsenedAnnual report
「Revenue was ¥19,996 million, up 25.6% year on year, due to foreign exchange effects, but the operating loss was ¥2,062 million, compared with a loss of ¥697 million in the same period of the previous year, due to higher transportation costs resulting from port disruptions.」
Although North America reported higher revenue due to foreign exchange effects, the operating loss widened from ¥697 million in the same period of the previous year to ¥2,062 million due to higher transportation costs resulting from port disruptions. - FY2023-Q2WorsenedAnnual report
「Revenue was ¥12,619 million, up 8.5% year on year, due to foreign exchange effects, but the operating loss was ¥1,689 million, compared with a loss of ¥425 million in the same period of the previous year, due to higher transportation costs resulting from port disruptions.」
Although revenue in the North American business increased, the operating loss widened from ¥425 million in the same period of the previous year to ¥1,689 million due to higher transportation costs resulting from port disruptions. - FY2023-Q1WorsenedAnnual report
「Due to higher transportation costs resulting from port disruptions, revenue was ¥5,778 million, up 1.1% year on year, while the operating loss was ¥1,103 million, compared with a loss of ¥144 million in the same period of the previous year.」
The North American business was affected by higher transportation costs resulting from port disruptions, and the operating loss widened from ¥144 million in the same period of the previous year to ¥1,103 million. - FY2022WorsenedAnnual report
「North America was affected by semiconductor supply shortages and higher ocean freight costs. Revenue was ¥21,109 million, down 13.4% from the previous fiscal year, while the operating loss was ¥975 million, compared with a loss of ¥942 million in the previous fiscal year.」
Revenue in North America declined due to semiconductor shortages and higher ocean freight costs, while the operating loss widened from ¥942 million in the previous year to ¥975 million. - FY2022-Q3MitigatedAnnual report
「Although results recovered from the previous fiscal year, when revenue fell sharply due to COVID-19, they were affected by semiconductor supply shortages. Revenue was ¥15,923 million, down 10.2% year on year, while the operating loss was ¥697 million, compared with a loss of ¥829 million in the same period of the previous year.」
The North American operating loss narrowed from ¥829 million to ¥697 million year on year, but the impact of semiconductor supply shortages remained, and the operating loss continued. - FY2022-Q2MitigatedAnnual report
「Although results recovered from the previous fiscal year, when revenue fell sharply due to COVID-19, they were affected by semiconductor supply shortages. Revenue was ¥11,629 million, up 8.9% year on year, while the operating loss was ¥425 million, compared with a loss of ¥591 million in the same period of the previous year.」
Revenue from the North American business recovered from the previous fiscal year, and the operating loss narrowed from ¥591 million to ¥425 million. However, the impact of semiconductor supply shortages remained, and the operating loss continued. - FY2020WorsenedAnnual report
「In particular, the North American business, which is our most important issue, is in a difficult position in which it would be challenging to maintain a viable business by simply extending current operations.」
Regarding the North American business, the view has strengthened that the business will be difficult to sustain by simply continuing its current operations, given the previous delays in improving performance and insufficient fixed-cost recovery. - FY2019WorsenedAnnual report
「Although we vigorously pursued cost-reduction activities in FY2018, the operating profit margin was 3.2% due to the impact of the heavy rains in western Japan, including plant production stoppages and employees being affected, losses incurred during new product launches, and delays in improving performance in the North American business.」
The delayed improvement in the North American business continued to be identified as a factor behind the 3.2% operating margin, and the risks of insufficient fixed-cost recovery and delayed earnings improvement in North America remain. - FY2018MaterialisedAnnual report
「Although efforts were made to reduce total costs in Japan and overseas, cost of sales as a percentage of revenue was 89.5%, compared with 89.0% in the previous fiscal year, because fixed-cost recovery did not progress in line with the decline in revenue in the North American business.」
Insufficient fixed-cost recovery due to lower revenue in the North American business materialized as an increase in the cost-of-sales ratio during the period.