Risk of lower plant utilization and deteriorating profitability associated with restructuring overseas operations
First written in FY2019. 10 of 16 entries say "Materialised", first in FY2019. Latest entry: FY2026.
Wood One moved to the "Worse" side of this theme in 2022, 1 year after the typical company in this theme (2021).
The whole theme swung hardest in 2025: 6 of 7 companies on the "Worse" side.
6 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「If the performance of the subsidiary does not improve or deteriorates, this could affect the Group's financial position and results of operations. To address these risks, the Group gathers information on overseas political and economic conditions and responds accurately and promptly, obtaining advice from outside experts as necessary. At the New Zealand subsidiary, it is pursuing measures to improve profitability, including reviewing unprofitable businesses, reforming the cost structure, shifting to high-value-added products, and developing new markets.」
The New Zealand subsidiary recorded an ordinary loss for 5 consecutive fiscal years from the fiscal year ended March 2022, and recorded a ¥2,956 million business restructuring loss in the current fiscal year in light of the decline in profitability. - 2026-05-13WorsenedResults
「ニュージーランド子会社において、世界的なインフレによる製造コストの上昇や需要減少に対応するため、ノースランド工場およびトライボード工場の再編に着手しました。」
ギスボン工場の再編後も、ニュージーランド子会社で別工場の再編に着手したことが開示された。 - FY2025-H1MitigatedAnnual report
「In the overseas segment, the New Zealand subsidiary saw lower sales volumes of logs and lower production volumes of wood products for the Group because of weaker housing demand in Japan. However, sales to customers outside the Group increased, and profitability also improved year on year, partly as a result of the previous year's business restructuring. At the Indonesian subsidiary, new business development, mainly in the European and U.S. markets, progressed steadily, resulting in strong year-on-year trends in both sales and profit.」
Despite the risk of deteriorating profitability associated with overseas business restructuring, profitability improved at the New Zealand subsidiary, while the Indonesian subsidiary also performed well in terms of sales and profit as it developed the European and U.S. markets. - FY2024MaterialisedAnnual report
「Extraordinary losses mainly comprised a ¥1,456 million business restructuring loss, including impairment losses on assets with no expected future use and employee restructuring costs, associated with the restructuring of the New Zealand subsidiary.」
Impairment losses on assets and employee restructuring costs associated with the restructuring of the New Zealand subsidiary were realized in the full-year results as a ¥1,456 million business restructuring loss. - FY2024-Q3MaterialisedAnnual report
「Extraordinary losses mainly comprised a ¥1,480 million business restructuring loss, including impairment losses on assets with no expected future use and employee restructuring costs, associated with the restructuring of the New Zealand subsidiary.」
Impairment losses on assets and employee restructuring costs associated with the restructuring of the New Zealand subsidiary were actually recorded as a ¥1,480 million business restructuring loss. - FY2024-Q2WorsenedAnnual report
「On 25 October 2023, Juken New Zealand Ltd., a consolidated subsidiary in New Zealand, began labor-management consultations regarding business restructuring aimed at improving the profitability of its Gisborne plant. No final conclusion has been reached at this point, but impairment losses on manufacturing equipment, personnel restructuring costs and other expenses may arise in the future.」
In connection with the overseas business restructuring, labor-management consultations aimed at improving the earnings of the Gisborne plant in New Zealand began, and the company indicated that additional impairment losses and employee restructuring costs could arise. - FY2024-Q1MaterialisedAnnual report
「Loss on liquidation of subsidiary 12 9」
In connection with the liquidation procedures for the Chinese subsidiary, the company recorded a ¥9 million loss on liquidation of a subsidiary in the first quarter. - FY2023-Q3MaterialisedAnnual report
「Loss on liquidation of subsidiary 141 104」
In connection with the liquidation of the Chinese subsidiary, the company recorded a ¥104 million loss on liquidation of a subsidiary during the cumulative third quarter. - FY2023-Q2MaterialisedAnnual report
「In connection with the completion of the liquidation of the consolidated subsidiary in the People's Republic of China and related matters, the company recorded a ¥116 million loss on liquidation of a subsidiary as an extraordinary loss.」
The company recorded a ¥116 million loss on liquidation of the consolidated Chinese subsidiary following completion of the liquidation and related procedures, realizing losses associated with the overseas business restructuring in the quarter as well. - FY2023-Q1MaterialisedAnnual report
「Loss on liquidation of subsidiary － 12」
While liquidation procedures for the Chinese subsidiary were ongoing, the company recorded a ¥12 million loss on liquidation of a subsidiary in the first quarter. - FY2022MaterialisedAnnual report
「As the Company reviews the production and sales structure of its consolidated subsidiaries in the People's Republic of China, it recognized a loss on liquidation of a consolidated subsidiary of ¥156 million during the fiscal year.」
A ¥156 million loss on liquidation of the consolidated Chinese subsidiary was recognized in the full-year results in connection with the review of its production and sales structure. - FY2022-Q3MaterialisedAnnual report
「Meanwhile, as the company reviewed the production and sales structure of its consolidated subsidiary in the People's Republic of China, it recorded a ¥141 million loss on liquidation of a subsidiary in the third quarter.」
In connection with the overseas business restructuring, the company recorded a ¥141 million loss on liquidation of its consolidated Chinese subsidiary. - FY2020-Q3MitigatedAnnual report
「As a result of these promotional activities, the Housing Building Materials and Equipment business recorded higher net sales than in the previous year and higher profit, partly reflecting the effects of the overseas business restructuring and other measures implemented in the previous consolidated fiscal year.」
The company explained that, although overseas business restructuring had a negative impact on profitability, the effects of the previous year's restructuring emerged and the Housing Building Materials and Equipment business posted higher profit. - FY2020-Q2MitigatedAnnual report
「As a result of these promotional activities, the Housing Building Materials and Equipment business recorded higher net sales than in the previous year and higher profit, partly reflecting the effects of the overseas business restructuring and other measures implemented in the previous consolidated fiscal year.」
The company explained that, although overseas business restructuring had a negative impact on profitability, the effects of the previous year's restructuring emerged and the Housing Building Materials and Equipment business posted higher profit. - FY2020-Q1MitigatedAnnual report
「These promotional activities increased revenue in the residential building materials and equipment business year on year, although soaring unit prices for imported materials and other factors had a negative impact. However, net income increased, partly due to the effects of the overseas business restructuring carried out last fiscal year.」
Although higher unit prices for imported materials remained a negative factor, the company explained that the Housing Building Materials and Equipment business posted higher net income as a result of the effects of the previous fiscal year's overseas business restructuring and other measures. - FY2019MaterialisedAnnual report
「In addition to lower plant utilization at overseas subsidiaries resulting from the overseas business restructuring and higher costs, including raw material and electricity expenses, profitability came under significant pressure. As a result, operating income declined by ¥1,362 million from the previous year to ¥470 million, down 74.3% year on year.」
The decline in plant utilization and increase in costs associated with overseas business restructuring led to an actual deterioration in operating income. The company also recorded impairment losses totaling ¥1,513 million, including ¥984 million on fixed assets at the New Zealand plant and ¥382 million on goodwill related to the Indonesian business.