Deterioration in the Order Environment Due to Capital Investment, Automobile Production and Material Prices

「In Japan, amid continued uncertainty over U.S. tariff policy, semiconductor demand for AI and data centre applications was robust, while demand for semiconductors for conventional applications was soft and capital investment demand for industrial machinery and other products stagnated.」

「In Japan, amid continued uncertainty over U.S. tariff policy, exports of automobiles and semiconductors temporarily increased, but capital investment demand for semiconductor manufacturing equipment, machine tools and other products declined.」

「In the U.S., capital investment demand remained stagnant due to high interest rates, high prices and other factors. In Europe, economic activity overall was on a recovery trend, but manufacturing remained sluggish. In China, the economy remained weak, particularly domestic demand. In Japan, capital investment remained solid and the economy was on a gradual recovery trend.」

「In Japan, despite the impact of higher import procurement costs due to the weaker yen and other factors, orders for machinery and from the automotive industry recovered as component shortages eased.」

「In the U.S., tighter financial conditions weighed on economic activity, particularly in manufacturing. In Europe, external demand remained weak amid higher raw material prices and poor manufacturing conditions. In Japan, although the weaker yen raised import procurement costs and had other effects, orders for machinery and from the automotive industry recovered as component shortages eased.」

「In the U.S., capital investment demand began to show signs of weakening under the impact of rising prices and interest rates. In Europe, similarly, the effects of rising prices and other factors continued to weigh on production, particularly in manufacturing. In Japan, although the weaker yen raised import procurement costs and had other effects, orders for machinery and from the automotive industry recovered as component shortages eased.」

「In Japan, sales of pressure gauges and pressure sensors for the industrial machinery and semiconductor industries increased, while sales of pressure sensors for the construction machinery industry and automotive applications declined because some electronic components were difficult to obtain. At the U.S. subsidiary, sales increased, mainly of core industrial machinery-related products, against a backdrop of solid capital investment.」

「At the U.S. subsidiary, sales increased, mainly of core process-related and industrial machinery-related products, against a backdrop of solid capital investment. In Japan, sales of pressure gauges and pressure sensors for the industrial machinery and semiconductor industries increased, while sales of pressure sensors for the construction machinery industry and automotive applications declined because some electronic components were difficult to obtain.」

「At the U.S. subsidiary, sales increased, mainly of core process-related and industrial machinery-related products, against a backdrop of solid capital investment. In Japan, sales of pressure gauges for the industrial machinery and semiconductor industries increased, while sales of pressure sensors for the semiconductor and construction machinery industries and automotive pressure sensors declined because some electronic components were difficult to obtain.」

「Capital investment demand, which had been weak in the previous fiscal year, recovered, with particularly strong increases in sales to the semiconductor and construction machinery industries.」

「In Japan, capital investment demand, which had been weak in the same period of the previous year, recovered, with particularly strong recoveries in sales to the semiconductor and construction machinery industries.」

「In Japan, capital investment demand, which had been weak in the same period of the previous year, recovered, with particularly strong recoveries in sales to the semiconductor and construction machinery industries.」

「In the U.S. subsidiary, third-quarter performance was affected by declining energy demand due to the spread of COVID-19 and the downturn in the U.S. economy, resulting in lower sales, mainly of core process-related and industrial machinery-related products. In Japan, although demand showed signs of recovery, capital investment demand remained sluggish due to postponed projects and other factors. In addition, affected by the slowdown in automotive demand during the first half of the fiscal year, sales of automotive pressure sensors declined, as did sales of air-leak testers and die-cast products, whose main customers are in the automotive industry.」

「In Japan, demand for pressure gauges and pressure sensors for the semiconductor industry, which had remained solid through the first quarter, was sluggish in the second quarter due to postponed projects and other factors. In addition, the sharp slowdown in demand from the automotive industry reduced sales of automotive pressure sensors as well as sales of air-leak testers and die-cast products, whose main customers are in the automotive industry.」

「Although demand for pressure gauges and pressure sensors for the semiconductor industry increased, demand for automotive pressure sensors declined following the sharp slowdown in the automotive industry. Demand for air-leak testers and die-cast products, whose main customers are in the automotive industry, also declined.」

「Demand for pressure gauges and pressure sensors for the industrial machinery, process, FA pneumatic equipment, air-conditioning and semiconductor industries, which had been strong in the previous fiscal year, declined. Demand for die-cast products, whose main customers are in the automotive industry, also declined.」

「The Group's business tends to be affected by capital investment trends in Japan and overseas. If capital investment trends weaken as a result of deteriorating economic conditions in Japan and overseas, or if the order environment deteriorates because automotive production declines in the automotive fields of the pressure sensor and other businesses, and the resulting increase in materials prices cannot be passed on to selling prices, the Group's performance may be affected.」