Reducing Development Costs and Inventories and Improving Profitability
First written in FY2016. 18 of 33 entries say "Advanced", first in FY2018. Latest entry: FY2026.
The whole theme swung hardest in 2019: 14 of 100 companies on the "Worse" side.
- FY2026AdvancedAnnual report
「The operating margin was 13.3%, up 0.2 percentage points from the previous consolidated fiscal year. We will continue working to improve margins through the introduction of high-value-added products based on new technologies and customer needs, cost reductions, expense cuts and other measures.」
The operating margin rose to 13.3%, maintaining a level above the previous medium- to long-term target of at least 10%. The filing also describes measures including price optimization, productivity improvements and cost reductions. - FY2026-H1AdvancedAnnual report
「The measuring and weighing instruments business reported higher revenue and profit year on year. Demand for weighing instruments remained firm in each region, while efforts to improve margins contained part of the impact of higher costs associated with stronger sales activities.」
In response to higher costs associated with stronger sales activities, efforts to improve margins contained part of the impact, contributing to higher revenue and profit in the measuring and weighing instruments business. - FY2025AdvancedAnnual report
「The operating margin was 13.1%, up 0.3 percentage points from the previous consolidated fiscal year. We will continue working to improve margins through the introduction of high-value-added products based on new technologies and customer needs, cost reductions, expense cuts and other measures.」
The operating margin rose to 13.1%, maintaining a level above the medium- to long-term target of at least 10%. The company continues to pursue high-value-added products, cost reductions and expense cuts. - FY2024AdvancedAnnual report
「The operating margin was 12.8%, up 0.1 percentage points from the previous consolidated fiscal year. We will continue working to improve margins through the introduction of high-value-added products based on new technologies and customer needs, cost reductions, expense cuts and other measures.」
The operating margin was 12.8%, maintaining a level above the medium- to long-term target of at least 10%. Improvements in production-plant efficiency, reductions in materials costs and reviews of logistics routes and methods have also contributed to the improvement in margins. - FY2024-Q3AdvancedAnnual report
「In addition to the existing level of profitability, improved productivity and cost reductions through Group-wide procurement led to a substantial year-on-year increase in profit. As a result, net sales in the semiconductor-related business were ¥7,837 million, up 98.3% year on year, while operating income was ¥2,826 million, up 125.4% year on year.」
To improve profitability, the company pursued productivity improvements and cost reductions through Group-wide procurement, achieving a substantial increase in profit in the semiconductor-related business. Consolidated operating income also increased 9.5% year on year. - FY2024-Q2AdvancedAnnual report
「In the medical and healthcare equipment business, although the significant impact of foreign exchange resulted in lower revenue year on year, continued efforts to reduce costs and contain selling, general and administrative expenses resulted in higher profit year on year. As a result, net sales for the cumulative second quarter of the fiscal year under review were ¥29,335 million, up 8.0% year on year, while operating income was ¥3,163 million, up 73.2% year on year.」
Continued cost reductions and containment of selling, general and administrative expenses resulted in a 73.2% year-on-year increase in consolidated operating income, including from the medical and healthcare equipment business, which reported lower revenue. - FY2024-Q1AdvancedAnnual report
「Through continued efforts to strengthen production and shipping controls and optimize inventory levels, we substantially improved profit year on year. As a result, net sales for the cumulative first quarter of the fiscal year under review were ¥13,387 million, up 11.7% year on year, while operating income was ¥1,099 million, compared with an operating loss of ¥219 million in the same period of the previous year.」
The filing describes an improvement in profit, with the company continuing to strengthen production and shipping controls and optimize inventory levels, resulting in a shift from an operating loss in the same period of the previous year to operating income. - FY2023-Q3MitigatedAnnual report
「The increase in cost of sales related to the elimination of unrealized profits on inventories during the cumulative second quarter of the fiscal year under review was reduced as the yen’s depreciation peaked. The company continues working to optimize inventory levels in order to minimize the impact of foreign exchange movements.」
As the yen’s depreciation peaked, the increase in cost of sales related to the elimination of unrealized profits on inventories was reduced. The company also continues working to optimize inventory levels. - FY2023-Q2WorsenedAnnual report
「Across the Group, although sales increased year on year, the sharp depreciation of the yen led to a significant increase in cost of sales related to the elimination of unrealized profits on inventories, substantially depressing profit. The Group continues working to optimize inventory levels in order to minimize the impact of foreign exchange movements.」
Although sales increased, the increase in cost of sales related to the elimination of unrealized profits caused by the sharp depreciation of the yen substantially depressed profit. The company continues working to optimize inventory levels. - FY2023-Q1WorsenedAnnual report
「Although sales increased year on year, the sharp depreciation of the yen led to a significant increase in cost of sales related to the elimination of unrealized profits on inventories, substantially depressing profit.」
Although sales increased, the increase in cost of sales associated with the sharp depreciation of the yen substantially depressed profit, creating headwinds for improved profitability. - FY2022AdvancedAnnual report
「The operating margin was 10.6%, up 1.5 percentage points from the previous consolidated fiscal year. We will continue working to improve margins through the introduction of high-value-added products based on new technologies and customer needs, cost reductions, expense cuts and other measures.」
The operating margin reached 10.6%, above the medium- to long-term target of at least 10%. The company continues to introduce high-value-added products, reduce costs and cut expenses. - FY2022-Q3AdvancedAnnual report
「Amid expectations of higher materials prices and transportation costs, we promoted efforts to reduce product costs and worked to contain fixed costs. As a result, net sales for the cumulative third quarter of the fiscal year under review were ¥37,325 million, up 6.9% year on year, while operating income was ¥3,568 million, up 17.0% year on year.」
In response to expected increases in materials prices and transportation costs, the company reduced product costs and contained fixed costs, resulting in a 6.9% increase in net sales and a 17.0% increase in operating income. - FY2022-Q2AdvancedAnnual report
「Amid expectations of declining profit, we promoted efforts to reduce product costs and worked to contain fixed costs. As a result, net sales for the cumulative second quarter of the fiscal year under review were ¥23,876 million, up 8.4% year on year, while operating income was ¥2,134 million, up 43.5% year on year.」
The company continued to reduce product costs and contain fixed costs, resulting in year-on-year increases of 8.4% in net sales and 43.5% in operating income. The filing describes concrete progress toward improved profitability. - FY2022-Q1AdvancedAnnual report
「Under these circumstances, the Group focused on developing new customers and new markets while implementing measures to prevent the spread of infectious diseases, and continued to promote efforts to reduce product costs.」
The company continued its efforts to reduce product costs, and operating income for the first quarter was ¥847 million, up 292.3% year on year. - FY2021AdvancedAnnual report
「The operating margin was 9.1%, up 1.6 percentage points from the previous consolidated fiscal year. We will continue working toward our medium- to long-term target of a 10% operating margin by introducing high-value-added products based on new technologies and customer needs, reducing costs and cutting expenses, as well as pursuing other measures to improve margins.」
The operating margin rose to 9.1%, indicating progress toward the 10% target. In addition to cost reductions and expense cuts, the company explicitly identifies the introduction of high-value-added products as a measure. - FY2021-Q3RestatedAnnual report
「Amid expectations of declining revenue, we promoted efforts to reduce product costs and worked to contain fixed costs. As a result, net sales for the cumulative third quarter of the fiscal year under review were ¥34,904 million, down 0.3% year on year, while operating income was ¥3,050 million, up 57.6% year on year.」
The company continued to reduce product costs and contain fixed costs. Although revenue declined, operating income increased 57.6% year on year. - FY2021-Q2AdvancedAnnual report
「Amid expectations of declining revenue, we promoted efforts to reduce product costs and worked to contain fixed costs. As a result, net sales for the cumulative second quarter of the fiscal year under review were ¥22,019 million, down 3.5% year on year, while operating income was ¥1,487 million, up 57.5% year on year.」
The company reduced product costs and contained fixed costs, resulting in a 57.5% year-on-year increase in operating income despite the declining-revenue environment. - FY2021-Q1AdvancedAnnual report
「Amid expectations of declining revenue, we were unavoidably required to implement measures such as workforce reductions and reductions in the number of working days in some countries. We also worked to use costs related to sales activities and development investment efficiently. As a result, net sales for the first quarter of the fiscal year under review were ¥9,798 million, down 8.3% year on year, while operating income was ¥216 million, up 173.4% year on year.」
In response to the declining-revenue environment, the company implemented workforce reductions, reduced the number of working days and improved cost efficiency. Although net sales declined, operating income increased to ¥216 million. - FY2020AdvancedAnnual report
「The cost of sales ratio fell 1.2 percentage points from the previous consolidated fiscal year to 55.7%, mainly because inventories held within the Group declined as a result of efforts to use assets efficiently, which also reduced the amount of unrealized profit eliminated on consolidation.」
The reduction in inventories and other balances progressed, improving the cost of sales ratio to 55.7%. The operating margin also reached 7.5%, indicating progress in improving profitability toward the 10% target. - FY2020-Q3Continued increase in the inventory balanceAnnual report
「Merchandise and finished goods 6,999 7,451 Work in process 2,834 3,169 Raw materials and supplies 3,513 3,290」
On the balance sheet, merchandise and finished goods and work in process increased from the end of the previous consolidated fiscal year, and the inventory balance continued to rise. - FY2020-Q2Continued increase in inventories in preparation for higher salesAnnual report
「This was due to an increase of ¥839 million in inventories accumulated in preparation for higher sales going forward, a ¥1,040 million decrease in trade payables and ¥590 million in income taxes and other taxes paid, partly offset by ¥756 million in profit before income taxes and a ¥2,482 million decrease in trade receivables, among other factors.」
Inventories continued to increase in preparation for higher sales going forward, with an increase of ¥839 million reported for the cumulative period under review. - FY2019AdvancedAnnual report
「We formulated a consolidated business plan covering the most recent 3 fiscal years, from the fiscal year ended March 2020 through the fiscal year ended March 2022.」
The medium-term management plan covers the fiscal years ended March 2020 through March 2022 and sets a target operating margin of at least 10%. The operating margin for the fiscal year ended March 2019 was 5.7%, up from 5.4% in the previous fiscal year. The plan explicitly identifies the introduction of new technologies and high-value-added products, cost reductions, expense cuts and improved development efficiency as measures to achieve the target. - FY2019-Q3Continued Increase in InventoriesAnnual report
「This was due to a ¥1,348 million increase in current assets, mainly because inventories increased despite decreases in cash and deposits and notes and accounts receivable, as well as a ¥259 million increase in non-current assets, mainly because goodwill under intangible assets increased.」
Although a policy of reducing inventories has been stated, the company also reported an increase in inventories at the end of the third quarter under review. - FY2019-Q2Continued increase in inventories in preparation for higher salesAnnual report
「This was due to a ¥1,463 million increase in current assets, mainly because inventories increased in preparation for higher sales going forward, despite a decrease in notes and accounts receivable.」
Despite the policy of reducing inventories, inventories increased in preparation for higher sales going forward. Cash flows from operating activities also include a ¥1,650 million increase in inventories. - FY2018AdvancedAnnual report
「The operating margin was 5.4%, up 2.6 percentage points from the previous consolidated fiscal year. We will continue working toward our medium- to long-term target of a 10% operating margin by introducing new products based on new technologies, reducing costs and cutting expenses, as well as pursuing other measures to improve margins.」
Regarding improved profitability, the operating margin rose to 5.4%, and the 10% target and measures including new product launches, cost reductions and expense cuts are explicitly stated. The R&D expense ratio also fell to 10.6% from 11.1% in the previous fiscal year. - FY2018-Q3Increase in InventoriesAnnual report
「This was due to a ¥1,021 million increase in current assets, mainly because inventories increased despite decreases in notes and accounts receivable.」
The analysis of financial position states that inventories increased. This filing does not explicitly indicate any change to the R&D expense ratio or the target of reducing inventories by around 2021. - FY2017SoftenedAnnual report
「Research and development expenses remain high, but we regard them as forward-looking investments essential to the Group’s continued growth. In addition to carefully distinguishing growth areas from other areas, we will pursue higher development efficiency as a Group-wide policy and work to contain R&D expenses as a percentage of net sales.」
The specific target and deadline previously stated, namely, “an R&D expense ratio of 8% or less by around 2021,” are not repeated. Instead, the statement uses general language concerning the selection of growth areas, improved development efficiency and control of the ratio. - FY2016First statedAnnual report
「In particular, we will work to reduce development costs from their current level of more than 10% of sales to 8% or less by around 2021. At the same time, we aim to improve the profitability of our group by changing the evaluation criteria for overseas subsidiaries to place greater emphasis on profit than on sales. With regard to inventories, we will also reduce assets by around 2021 and seek to make more effective use of capital.」
For the first time, the company explicitly set out multiple specific measures: reducing the development-cost ratio to 8% or less by around 2021, evaluating overseas subsidiaries with an emphasis on profit, and reducing inventories.