Sluggish European and U.S. demand for Chinese subsidiaries and reform benefits not yet materializing
First written in FY2018-Q1. 7 of 19 entries say "Mitigated", first in FY2019-Q1. Latest entry: FY2022.
1 other company's latest entry also says "Mitigated".
- FY2022MitigatedAnnual report
「The company concluded that, because the continued operation of the business involved a certain level of risk, it should withdraw from the overseas business and concentrate its management resources on other businesses.」
Although risks related to the continued operation of the Chinese subsidiary remained, the company moved toward eliminating its exposure to the Chinese subsidiary through the transfer of the business. - FY2022-Q3MitigatedAnnual report
「As a result, overseas business sales were ¥589.222 million, up 67.4% year on year, and operating profit was ¥31.469 million, compared with an operating loss of ¥58.403 million in the same period of the previous year.」
Overseas business sales increased 67.4% year on year, and operating results turned from a loss in the same period of the previous year to a profit of ¥31.469 million. Risks related to weak demand and reforms remained, but operating results continued to improve. - FY2022-Q2MitigatedAnnual report
「In the overseas business, the company focused on manufacturing and selling plastic molded products, including furniture components, household goods components and appliance components for Japanese companies and companies in China, helped by the recovery of the global economy, particularly in the US and China, and worked to expand sales. As a result, overseas business sales were ¥378.121 million, up 54.4% year on year, and operating profit was ¥15.299 million, compared with an operating loss of ¥53.346 million in the same period of the previous year.」
The company focused on sales to companies in China and Japanese companies, increasing overseas business sales, while operating results turned from a loss in the same period of the previous year to a profit. - FY2022-Q1MitigatedAnnual report
「At the same time, the company strengthened price negotiations with customers and suppliers beyond previous levels and undertook business restructuring, including a review of its personnel structure. Through measures including a substantial review of expenses, including costs and labor costs, it streamlined the business as a whole and achieved a shift to a sustainably profitable structure. As a result, overseas business sales were ¥164.481 million, up 18.9% year on year, and operating profit was ¥652 thousand, compared with an operating loss of ¥30.873 million in the same period of the previous year.」
Overseas business sales increased 18.9%, and operating results turned from a loss in the same period of the previous year to a profit of ¥652 thousand. Risks related to demand and reforms remained, but operating results improved. - FY2021Sharp sales decline alongside a narrower lossAnnual report
「As a result, overseas business sales were ¥515.233 million, down 39.0% year on year, and the operating loss was ¥25.870 million, compared with an operating loss of ¥77.669 million in the same period of the previous year.」
Although COVID-19, the factory shutdown and production delays at European and North American office furniture manufacturers caused a substantial decline in sales, the operating loss narrowed through cost reductions and other measures. - FY2021-Q3Sharp sales decline alongside a narrower lossAnnual report
「In the overseas business, production declined at the Chinese subsidiary because the factory was shut down for approximately half a month during the first quarter of the consolidated fiscal year to prevent the spread of COVID-19, contributing to the decline in sales. After operations resumed, the manufacture and sale of plastic molded products, including appliance components and household goods components for Chinese and Japanese companies, proceeded relatively smoothly, and the company focused on sales activities to secure new orders. However, the manufacture and sale of office furniture components for companies in Europe and North America fell substantially because the customers' production systems were delayed by the spread of COVID-19. As a result, overseas business sales were ¥352.046 million, down 46.8% year on year, and the operating loss was ¥58.403 million, compared with an operating loss of ¥62.847 million in the same period of the previous year.」
The factory shutdown at the Chinese subsidiary and the decline in the manufacture and sale of office furniture components for Europe and North America caused a substantial decline in sales. Meanwhile, the operating loss narrowed from the same period of the previous year through cost reductions. - FY2021-Q2WorsenedAnnual report
「As a result, overseas business sales were ¥244.860 million, down 50.3% year on year, and the operating loss was ¥53.346 million, compared with an operating loss of ¥36.078 million in the same period of the previous year.」
The overseas business reported a 50.3% decline in sales due to the Chinese subsidiary's factory shutdown caused by COVID-19 and declining demand for office furniture components in Europe and North America, while the operating loss expanded from the same period of the previous year. - FY2021-Q1Factory shutdown and sharp sales decline alongside improved lossAnnual report
「In the overseas business, production at the Chinese subsidiary declined and sales fell because the factory was shut down for approximately half a month to prevent the spread of COVID-19. After operations resumed, the manufacture and sale of plastic molded products, including appliance components and household goods components for Chinese and Japanese companies, proceeded relatively smoothly. However, office furniture components for companies in Europe and North America saw a substantial decline in sales because the customers' office furniture production systems were delayed by the impact of COVID-19. As a result, overseas business sales were ¥138.297 million, down 55.9% year on year, and the operating loss was ¥30.873 million, compared with an operating loss of ¥35.466 million in the same period of the previous year.」
While the Chinese subsidiary experienced an approximately half-month factory shutdown and sales of office furniture components to Europe and North America fell sharply, the operating loss narrowed from the same period of the previous year through cost reductions. - FY2020Sharp sales decline alongside a narrower lossAnnual report
「As a result, overseas business sales were ¥844.014 million, down 42.5% year on year, and the operating loss was ¥77.669 million, compared with an operating loss of ¥182.939 million in the same period of the previous year.」
Although sales declined substantially due to US-China trade friction and supply chain disruption, the operating loss narrowed through cost reductions and other measures. - FY2020-Q3WorsenedAnnual report
「In the overseas business, the company manufactures and sells plastic molded products, including office furniture components, appliance components and automotive-related components. However, procurement costs increased due to higher tariffs resulting from US-China trade friction, and the supply chain originating in China was disrupted, causing a substantial decline in sales, particularly of products for North America. The company therefore focused on sales activities and implemented measures including improving and strengthening purchasing management and optimizing personnel allocation. As a result, overseas business sales were ¥688.741 million, down 39.4% year on year, and the operating loss was ¥143.566 million, compared with an operating loss of ¥107.440 million in the same period of the previous year.」
Higher tariffs, increased procurement costs and supply chain disruption caused a substantial decline in sales to North America, and the overseas business operating loss expanded from the same period of the previous year. - FY2020-Q2WorsenedAnnual report
「In the overseas business, the company manufactures and sells plastic molded products, including office furniture components, appliance components and automotive-related components. However, procurement costs increased due to higher tariffs resulting from US-China trade friction, and the supply chain originating in China was disrupted, causing a substantial decline in sales to North America. The company therefore focused on sales activities and implemented measures including improving and strengthening purchasing management and optimizing personnel allocation. As a result, overseas business sales were ¥512.064 million, down 33.5% year on year, and the operating loss was ¥93.107 million, compared with an operating loss of ¥39.194 million in the same period of the previous year.」
Higher tariffs resulting from US-China trade friction and supply chain disruption materialized as a substantial decline in sales to North America, and the overseas business operating loss expanded from the same period of the previous year. - FY2020-Q1WorsenedAnnual report
「As a result, overseas business sales were ¥324.205 million, down 6.6% year on year, and the operating loss was ¥61.943 million, compared with operating profit of ¥20.439 million in the same period of the previous year.」
Although measures to rebuild the Chinese subsidiary continued, overseas business sales declined and operating results turned from a profit in the same period of the previous year to a loss. Actual results related to the risks of weak demand and reforms not yet taking effect deteriorated. - FY2019Delayed recovery of trust alongside a narrower lossAnnual report
「The business as a whole continued to feel the negative effects into the current fiscal year, partly because restoring customer trust following a misconduct incident involving a former officer and employee of the Chinese subsidiary two years earlier took time. In addition, delays in delivering products to customers caused by construction delays during the relocation of the Chinese subsidiary's factory also had an impact. Sales therefore remained at approximately the previous fiscal year's level and showed little growth.」
While delays in restoring customer trust after the misconduct incident and delivery delays associated with the factory relocation became newly apparent, the overseas business operating loss narrowed from ¥369.381 million to ¥178.709 million. - FY2019-Q3MitigatedAnnual report
「As a result, overseas business sales were ¥1,135.660 million, down 3.5% year on year, and the operating loss was ¥107.440 million, compared with an operating loss of ¥219.328 million in the same period of the previous year.」
Although overseas business sales declined year on year, the operating loss narrowed from ¥219.328 million to ¥107.440 million. The adverse effects related to weak demand and reforms at the Chinese subsidiary continued, but operating results improved. - FY2019-Q2MitigatedAnnual report
「Although it took time to establish and improve the production system, the company achieved year-on-year improvements in both sales and operating results.」
Although improving the production system at the Chinese subsidiary has taken time, overseas business sales increased 7.6% year on year, while the operating loss narrowed from ¥214.967 million to ¥39.194 million. - FY2019-Q1MitigatedAnnual report
「While working to expand sales, the company made efforts to fully overcome the effects of last year's misconduct incident in both manufacturing and sales, achieving year-on-year improvements in both sales and operating profit.」
The company did not state that the adverse effects related to demand and reforms at its Chinese subsidiary had been resolved, but sales and operating profit in the overseas business improved from the same period of the previous year, and operating results turned from a loss to a profit. - FY2018-Q3RestatedAnnual report
「In the overseas business, the company sought to expand the manufacture and sale of plastic molded products, including office furniture components, appliance components and automotive-related components. However, order intake and sales of components were sluggish due to fluctuations in demand for office furniture in Europe and North America, resulting in sales and operating profit below the levels of the same period of the previous year. As a result, overseas business sales were ¥1,177.124 million, down 12.6% year on year, and the operating loss was ¥219.328 million, compared with an operating loss of ¥28.940 million in the same period of the previous year.」
With sluggish orders and sales caused by fluctuations in demand for office furniture components in Europe and North America continuing, the overseas business reported sales of ¥1,177.124 million and an operating loss of ¥219.328 million. - FY2018-Q2MaterialisedAnnual report
「In the overseas business, the company sought to expand the manufacture and sale of plastic molded products, including office furniture components, appliance components and automotive-related components. However, order intake and sales of components were sluggish due to fluctuations in demand for office furniture in Europe and North America, resulting in sales and operating profit below the levels of the same period of the previous year. As a result, overseas business sales were ¥716.080 million, down 27.0% year on year, and the operating loss was ¥214.967 million, compared with operating profit of ¥3.264 million in the same period of the previous year.」
Sluggish orders and sales caused by fluctuations in demand for office furniture components in Europe and North America materialized as an actual decline in sales and an operating loss. - FY2018-Q1First statedAnnual report
「However, revenue and operating profit fell below the year-earlier period because orders and sales of components remained sluggish amid fluctuations in demand for office furniture in Europe and the United States, while fundamental reforms to the production and management systems had yet to produce sufficient results.」
For the first time, the company specifically identified as business risks sluggish order intake and sales growth caused by fluctuations in demand for office furniture components in Europe and North America, and the fact that the effects of reforms to its production and management systems have yet to fully emerge.