Profit Pressure from Costs of Ramping Up Production of Hollow Valves for New Products
First written in FY2019-Q1. 6 of 9 entries say "Materialised", first in FY2019-Q2. Latest entry: FY2021.
Fuji Oozx moved to the "Worse" side of this theme in 2018.
1 other company's latest entry also says "Dropped".
- FY2021DroppedAnnual reportThe FY2021 annual report does not identify production start-up costs for the new hollow valve as an individual factor weighing on profit.
- FY2021-Q1MaterialisedAnnual report
「Although the Company implemented measures to improve profitability, including thorough fixed-cost reductions, a review of its production structure and the use of employment adjustment subsidies amid a sharp decline in sales, these measures were insufficient to fully offset the impact of lower sales, resulting in the recognition of a loss.」
Although the Company implemented measures to reduce fixed costs and other expenses amid declining sales, including in the hollow valve business, operating loss was ¥588 million and ordinary loss was ¥515 million, reflecting the materialization of profit pressure including the cost burden associated with business expansion and the production structure. - FY2020MitigatedAnnual report
「During the current fiscal year, the Company completed the switch to a new manufacturing method aimed at improving quality and productivity, together with the associated reorganization of production lines. It therefore disposed of and sold equipment that was no longer needed.」
The reorganization of the hollow valve production lines was completed, and the disposal of legacy equipment associated with the start-up and expansion progressed. - FY2020-Q2MaterialisedAnnual report
「Ordinary profit was lower than in the same period of the previous year, primarily due to the significant impact of declining product sales to the North American market from domestic sales. Although productivity improvements for hollow valves are beginning to bear fruit, front-loaded investment associated with business expansion continued. Operating profit was ¥349 million (down ¥88 million year on year), ordinary profit was ¥373 million (down ¥40 million year on year).」
Although productivity improvements for hollow valves are progressing, front-loaded investment associated with business expansion continued, with operating profit down ¥88 million year on year and ordinary profit down ¥40 million. Factors weighing on profit continued to materialize in the results. - FY2020-Q1MaterialisedAnnual report
「However, profit was lower than in the same period of the previous year due to declining product sales, higher manufacturing costs associated with the expansion of the hollow valve business, foreign exchange losses and other factors. As a result, net sales were ¥5,590 million (up ¥126 million year on year), operating profit was ¥28 million (down ¥171 million year on year), ordinary profit was ¥31 million (down ¥229 million year on year), and profit attributable to owners of the parent was ¥15 million (down ¥160 million year on year).」
Higher manufacturing costs associated with the expansion of the hollow valve business actually occurred alongside declining product sales and foreign exchange losses as factors weighing on profit. Operating profit decreased by ¥171 million year on year, and ordinary profit decreased by ¥229 million. - FY2019MaterialisedAnnual report
「However, profit was lower than in the previous fiscal year due to higher costs from front-loaded investment in production equipment and increased manufacturing costs associated with the expansion of the hollow valve business, investments to expand production capacity at overseas subsidiaries, the refurbishment of deteriorated domestic equipment, and production line reorganization.」
Higher costs from the expansion of the hollow valve business, capacity expansion at overseas subsidiaries, domestic equipment upgrades and production line reorganization actually occurred, with operating profit down ¥724 million from the previous fiscal year and ordinary profit down ¥781 million. - FY2019-Q3MaterialisedAnnual report
「However, profit was lower than in the same period of the previous year due to higher manufacturing costs associated with the expansion of the hollow valve business and increased expenses for the refurbishment of production equipment that had deteriorated over time.」
Higher manufacturing costs associated with the expansion of the hollow valve business and refurbishment costs for production equipment that had deteriorated over time actually occurred, with operating profit down ¥636 million year on year and ordinary profit down ¥799 million. - FY2019-Q2MaterialisedAnnual report
「However, profit was lower than in the same period of the previous year due to higher costs from the production start-up of the new umbrella hollow valve and front-loaded investment associated with business expansion.」
Higher costs from the production start-up of the new umbrella hollow valve and front-loaded investment associated with business expansion actually occurred, with operating profit down ¥300 million year on year and ordinary profit down ¥470 million. - FY2019-Q1First statedAnnual report
「However, profit was lower than in the same period of the previous year due to increases in depreciation, labor and outsourced processing costs associated with the production start-up of the new umbrella hollow valve. As a result, net sales were ¥5,464 million (up ¥654 million year on year), operating profit was ¥198 million (down ¥111 million year on year), ordinary profit was ¥261 million (down ¥114 million year on year), and profit attributable to owners of the parent was ¥175 million (down ¥74 million year on year).」
Increases in depreciation, labor and outsourced processing costs associated with the production start-up of the new umbrella hollow valve actually occurred, with operating profit down ¥111 million year on year, ordinary profit down ¥114 million, and profit attributable to owners of the parent down ¥74 million.