Production Stagnation Due to Sluggishness in Brazil’s Automotive Market
First written in FY2017. 11 of 23 entries say "Mitigated", first in FY2020-Q1. Latest entry: FY2025-H1.
Hi-Lex moved to the "Worse" side of this theme in 2018, 1 year after the typical company in this theme (2017).
The whole theme swung hardest in 2021: 3 of 6 companies on the "Worse" side.
1 other company's latest entry also says "Reframed".
- FY2025-H1ReframedAnnual report
「In South America, revenue was ¥1,478 million, up ¥253 million, or 20.7%, year on year, due mainly to increased production volumes following the launch of new mass production programs. Operating loss was ¥51 million, compared with an operating loss of ¥45 million in the same period of the previous year. Although higher capacity utilization accompanying increased production had a positive effect, material costs increased, including the impact of foreign-exchange movements on components purchased in foreign currencies.」
The explanation has shifted from the previous focus on the downturn in the Brazilian market as the primary factor to an explanation centered on higher revenue from new mass production programs and the burden of material costs for components purchased in foreign currencies. - FY2024MitigatedAnnual report
「In South America, sales were ¥2,707 million, up ¥585 million year on year, or 27.6%, due partly to increased production volumes from the launch of new mass production and the increase in yen-denominated amounts following the depreciation of the yen. Operating results were an operating loss of ¥64 million, compared with an operating loss of ¥171 million in the previous year. Although higher utilization associated with expanded production had an improving effect, material costs increased, including the effects of exchange-rate movements on foreign-currency-denominated purchased components.」
In South America, primarily Brazil, the operating loss narrowed from ¥171 million to ¥64 million due to the launch of new mass production programs and higher capacity utilization. The burden from market conditions and material costs remains, but its impact has decreased. - FY2024-Q2MitigatedAnnual report
「In South America, revenue was ¥1,225 million, up ¥294 million, or 31.6%, year on year, due mainly to increased production volumes following the launch of new mass production programs and the increase in yen-denominated amounts resulting from the weaker yen.」
In South America, sales increased following the launch of new mass production programs, and the operating loss narrowed from ¥115 million in the same period of the previous year to ¥45 million. The loss burden from the South America business, including the downturn in the Brazilian market, has decreased from the previous fiscal year. - FY2024-Q1MitigatedAnnual report
「In South America, revenue was ¥611 million, up ¥201 million, or 49.3%, year on year, due mainly to increased production volumes following the launch of new mass production programs and the increase in yen-denominated amounts resulting from the weaker yen. Operating loss was ¥36 million, compared with an operating loss of ¥85 million in the same period of the previous year. Although higher capacity utilization accompanying increased production had a positive effect, material costs increased, including the impact of foreign-exchange movements on components purchased in foreign currencies.」
In South America, revenue increased 49.3% year on year following the launch of new mass production programs, and the operating loss narrowed from ¥85 million to ¥36 million. The burden of higher material costs remains. - FY2023MitigatedAnnual report
「In South America, sales were ¥2,121 million, up ¥482 million year on year, or 29.4%, as mass production of a new vehicle model was launched. Operating results were an operating loss of ¥171 million, compared with an operating loss of ¥269 million in the previous year. Although higher utilization associated with expanded production had an improving effect, results were also affected by exchange-rate movements on foreign-currency-denominated component purchases and higher ocean freight costs.」
Although the impact of the downturn in the Brazilian automotive market and other factors remains, the South America operating loss narrowed from ¥269 million to ¥171 million due to the launch of mass production for new vehicle models and higher capacity utilization. - FY2022MitigatedAnnual report
「In South America, sales were ¥1,639 million, up ¥868 million year on year, or 112.6%, as mass production of a new vehicle model was launched. Operating results were an operating loss of ¥269 million, compared with an operating loss of ¥479 million in the previous year. Although higher utilization associated with expanded production had an improving effect, results were also affected by higher costs due to exchange-rate movements affecting foreign-currency-denominated purchased components.」
In South America, primarily Brazil, revenue increased 112.6% due to the launch of mass production for new vehicle models and higher capacity utilization, while the operating loss narrowed from ¥479 million to ¥269 million. - FY2022-Q3MitigatedAnnual report
「Operating loss was ¥167 million, compared with an operating loss of ¥381 million in the same period of the previous year. Although higher capacity utilization accompanying increased production had a positive effect, costs also rose due to foreign-exchange effects on components purchased in foreign currencies, among other factors.」
Although the impact of the downturn in the Brazilian automotive market and other factors remains, the South America operating loss has narrowed from ¥381 million in the same period of the previous year to ¥167 million. - FY2022-Q1MitigatedAnnual report
「In South America, sales were ¥225 million, up ¥57 million year on year, or 34.1%. Although the Group worked on cost reductions and productivity improvements, the region reported an operating loss of ¥75 million, compared with an operating loss of ¥145 million in the previous year, partly due to sluggish production amid the downturn in the Brazilian automotive market and reduced production resulting from the spread of the infectious disease.」
Although the downturn in the Brazilian automotive market and the impact of production cuts due to the infectious disease continued, the South America operating loss narrowed from ¥145 million in the same period of the previous year to ¥75 million. - FY2021-Q3WorsenedAnnual report
「In South America, sales were ¥514 million, up ¥140 million year on year, or 37.5%. Although the Group worked on cost reductions and productivity improvements, the region reported an operating loss of ¥381 million, compared with an operating loss of ¥316 million in the previous year, partly due to sluggish production amid the downturn in the Brazilian automotive market and lower sales resulting from the spread of the infectious disease.」
The downturn in the Brazilian automotive market and the continued decline in sales due to the infectious disease caused the South America operating loss to widen from ¥316 million in the same period of the previous year to ¥381 million. - FY2021-Q2WorsenedAnnual report
「In South America, sales were ¥330 million, down ¥16 million year on year, or 4.7%. Although the Group worked on cost reductions and productivity improvements, the region reported an operating loss of ¥281 million, compared with an operating loss of ¥213 million in the previous year, partly due to sluggish production amid the downturn in the Brazilian automotive market and lower sales resulting from the spread of COVID-19.」
Weakness in the Brazilian automotive market and lower sales due to infectious disease continued, and the South American operating loss increased from ¥213 million in the same period of the previous year to ¥281 million. - FY2021-Q1MitigatedAnnual report
「In South America, sales amounted to ¥167 million, a decrease of ¥16 million, or 8.7%, year on year. In terms of operating results, although we worked to reduce costs and improve productivity, the impact of sluggish production caused by the weakness of the Brazilian automotive market and lower sales due to the spread of COVID-19 also contributed to an operating loss of ¥145 million, compared with an operating loss of ¥170 million in the same period of the previous year.」
Weakness in the Brazilian automotive market and lower sales due to infectious disease continued, but the South American operating loss narrowed from ¥170 million in the same period of the previous year to ¥145 million. - FY2020WorsenedAnnual report
「In South America, sales amounted to ¥518 million, a decrease of ¥146 million, or 22.0%, year on year. In terms of operating results, although we worked to reduce costs and improve productivity, the impact of sluggish production caused by the weakness of the Brazilian automotive market also contributed to an operating loss of ¥512 million, compared with an operating loss of ¥482 million in the same period of the previous year.」
Sluggish production caused by the weakness of the Brazilian automotive market continued, and the South American operating loss increased from ¥482 million in the previous year to ¥512 million. - FY2020-Q3MitigatedAnnual report
「In South America, sales amounted to ¥374 million, a decrease of ¥39 million, or 9.5%, year on year. In terms of operating results, although we worked to reduce costs and improve productivity, the impact of sluggish production caused by the weakness of the Brazilian automotive market also contributed to an operating loss of ¥316 million, compared with an operating loss of ¥458 million in the same period of the previous year.」
Sluggish production caused by the weakness of the Brazilian automotive market continued to be a factor behind the loss, but the South American operating loss narrowed from ¥458 million in the same period of the previous year to ¥316 million. - FY2020-Q2MitigatedAnnual report
「In South America, sales amounted to ¥346 million, an increase of ¥139 million, or 67.0%, year on year. In terms of profitability, although we worked to reduce costs and improve productivity, the impact of sluggish production caused by the weakness of the Brazilian automotive market also contributed to an operating loss of ¥213 million, compared with an operating loss of ¥362 million in the same period of the previous year.」
Sluggish production caused by the weakness of the Brazilian automotive market continued, but the South American operating loss narrowed from ¥362 million in the same period of the previous year to ¥213 million. - FY2020-Q1MitigatedAnnual report
「In South America, sales amounted to ¥184 million, an increase of ¥89 million, or 94.4%. In terms of profitability, although we worked to reduce costs and improve productivity, the impact of sluggish production caused by the weakness of the Brazilian automotive market also contributed to an operating loss of ¥170 million, compared with an operating loss of ¥306 million in the same period of the previous year.」
Sluggish production caused by the weakness of the Brazilian automotive market continued to be a factor behind the loss, but the South American operating loss narrowed from ¥306 million in the same period of the previous year to ¥170 million. - FY2019RestatedAnnual report
「Operating loss amounted to ¥482 million, partly due to the impact of upfront costs associated with the launches and depreciation of equipment, compared with an operating loss of ¥257 million in the same period of the previous year.」
The company continues to use a framework that focuses on upfront costs and equipment depreciation associated with the launch of newly ordered products, rather than the previously cited weakness in the Brazilian market, in explaining the factors behind the South American loss. - FY2019-Q3ReframedAnnual report
「Operating loss amounted to ¥458 million, partly due to the impact of upfront costs associated with the launches and depreciation of equipment, compared with an operating loss of ¥271 million in the same period of the previous year.」
Although the South American loss increased, the current explanation identifies upfront costs and equipment depreciation associated with the launch of newly ordered products, rather than the previously cited production stagnation caused by weakness in the Brazilian automotive market, as the primary factors. - FY2019-Q2WorsenedAnnual report
「In South America, sales were ¥207 million, partly reflecting an increase from the launch of newly won products, up ¥111 million year on year, or 115.3%. Operating results were an operating loss of ¥362 million, compared with an operating loss of ¥184 million in the previous year, partly due to upfront launch costs and depreciation expenses for equipment.」
In South America, sales increased with the launch of newly ordered products, while the operating loss increased from ¥184 million in the same period of the previous year to ¥362 million due to upfront launch costs and depreciation of equipment associated with the launches. - FY2019-Q1WorsenedAnnual report
「In South America, sales amounted to ¥94 million, an increase of ¥45 million, or 92.7%. In terms of profitability, although we worked to reduce costs and improve productivity, the impact of sluggish production caused by the weakness of the Brazilian automotive market also contributed to an operating loss of ¥306 million, compared with an operating loss of ¥99 million in the same period of the previous year.」
Sluggish production caused by the weakness of the Brazilian automotive market continued to be a factor behind the operating loss, and the South American operating loss increased from ¥99 million in the same period of the previous year to ¥306 million. - FY2018-Q3WorsenedAnnual report
「In South America, sales amounted to ¥164 million, an increase of ¥84 million, or 105.1%, year on year, due to the net increase in sales by the Brazilian subsidiary, which became a consolidated subsidiary from the third quarter of the previous fiscal year. In terms of profitability, although we worked to reduce costs and improve productivity, sales fell below plan due to the weakness of the Brazilian automotive market, resulting in an operating loss of ¥271 million, compared with an operating loss of ¥48 million in the same period of the previous year.」
Sales fell below plan due to the weakness of the Brazilian automotive market, and the South American operating loss amounted to ¥271 million. The loss increased from ¥48 million in the same period of the previous year, indicating that the impact of this risk has intensified. - FY2018-Q2WorsenedAnnual report
「In South America, sales amounted to ¥96 million, due to the net increase in sales by the Brazilian subsidiary acquired in the previous fiscal year. In terms of profitability, although we worked to reduce costs and improve productivity, sales fell below plan due to the weakness of the Brazilian automotive market, resulting in an operating loss of ¥184 million.」
Sales fell below plan due to the weakness of the Brazilian automotive market, and the South American operating loss amounted to ¥184 million. The loss increased from ¥99 million in the previous quarter and ¥85 million in the previous fiscal year. - FY2018-Q1MaterialisedAnnual report
「In terms of profitability, although we worked to reduce costs and improve productivity, the impact of sluggish production caused by the weakness of the Brazilian automotive market also contributed to an operating loss of ¥99 million.」
Weakness in the Brazilian automotive market and sluggish production were again identified as factors behind the South American segment's operating loss of ¥99 million in the current quarter. - FY2017MaterialisedAnnual report
「In terms of profitability, although we worked to reduce costs and improve productivity, the impact of sluggish production caused by the weakness of the Brazilian automotive market also contributed to an operating loss of ¥85 million.」
Weakness in the Brazilian automotive market and sluggish production were identified as factors behind the South American segment's operating loss of ¥85 million.