Improving profitability in the Industrial Materials business by reducing quality costs
First written in FY2017. 13 of 26 entries say "Advanced", first in FY2020-Q2. Latest entry: FY2026-H1.
- FY2026-H1Increase in production-related costs for mobility exterior functional componentsAnnual report
「During the six-month consolidated accounting period, demand for exterior functional components for mobility applications in the decorative products field increased, and sales rose year on year. However, operating profit decreased year on year due to higher production-related costs for these components and other factors.」
Although exterior functional components for mobility applications generated higher sales, operating profit in Industrial Materials fell 27.9% year on year due to higher production-related costs. - FY2025Upfront costs for new mobility products continueAnnual report
「Meanwhile, operating profit decreased year on year due to upfront costs related to new products for mobility applications and other factors.」
In Industrial Materials, mobility demand and sales increased, but operating profit fell 23.2% year on year to ¥3,741 million due to upfront costs associated with launching production of new products. - FY2025-H1Upfront costs for new mobility products reduced profitAnnual report
「Against this backdrop of demand, net sales increased year on year, but operating profit decreased year on year due to upfront costs related to new products for the mobility sector, among other factors.」
In Industrial Materials, demand and sales increased, but segment profit fell 19.6% year on year to ¥2,169 million due to upfront costs for new products for mobility applications and other factors. - FY2024AdvancedAnnual report
「In addition to higher sales, improvements in productivity and efficiency led to an increase in operating profit year on year. As a result, consolidated net sales for the period amounted to ¥74,090 million, up 7.7% year on year, and segment profit (operating profit) amounted to ¥4,900 million, up 5,131.3%.」
In the Industrial Materials business, operating profit increased substantially, from ¥93 million in the previous fiscal year to ¥4,900 million, due to a recovery in demand for decorative and metallized paper and improvements in productivity and efficiency. - FY2024-H1AdvancedAnnual report
「Operating profit increased year on year due to higher net sales and improvements in productivity and efficiency. As a result, consolidated net sales for the interim consolidated accounting period were ¥37,220 million, up 9.3% year on year, and segment profit (operating profit) was ¥2,699 million, up 86.6%.」
In the Industrial Materials business, demand for decorative and sustainable materials remained firm and productivity and efficiency improved. Net sales increased 9.3% and segment profit increased 86.6%. - FY2024-Q1AdvancedAnnual report
「Operating profit increased year on year due to efforts to improve productivity and efficiency in addition to demand trends. As a result, consolidated net sales for the cumulative first-quarter consolidated period were ¥17,841 million, up 4.5% year on year, and segment profit (operating profit) was ¥1,149 million, up 121.4%.」
In the Industrial Materials business, improved productivity and efficiency and recovering demand drove operating profit up 121.4% year on year to ¥1,149 million. - FY2023Sluggish demand for metallized paper and sharp profit declineAnnual report
「During the period, product demand for mobility applications in the decorative materials field remained firm against a backdrop of easing supply constraints, but demand for metallized paper products was sluggish due in part to prolonged supply-chain inventory adjustments, resulting in a year-on-year decline in net sales. In addition to demand trends, operating profit declined year on year due to the recognition of goodwill impairment loss, primarily caused by a higher discount rate for a European subsidiary that produces and sells sustainable materials.」
Although mobility demand remained firm, sluggish demand for metallized paper and impairment loss at a European subsidiary reduced operating profit in the Industrial Materials business to ¥93 million, down 97.2% year on year. - FY2023-Q3Sluggish demand for metallized paper and declining profitAnnual report
「During the first 9 months of the fiscal year, demand for mobility products in the decorative products field remained firm, but demand for metallized paper was sluggish due in part to supply-chain inventory adjustments. As a result, net sales and operating profit declined year on year. Consolidated net sales for the first 9 months were ¥5,103 million, down 7.1% year on year, while segment profit (operating profit) was ¥190 million, down 58.0%.」
Although demand for mobility products remained firm, sluggish demand for metallized paper resulted in a 7.1% decline in Industrial Materials net sales and a 58.0% decline in segment profit. - FY2023-Q2Profit declined due to weak demand and inflationAnnual report
「Demand for metallized paper products was sluggish due in part to adjustments in supply-chain inventories. As a result, net sales declined year on year. In addition to product demand trends, operating profit declined year on year due to the impact of higher costs resulting from inflation and other factors.」
In the Industrial Materials business, sluggish demand for metallized paper and higher inflation-related costs resulted in a 5.9% decline in net sales and a 57.4% decline in segment profit to ¥1,446 million. - FY2023-Q1Profit declined due to inflation-related costsAnnual report
「Operating profit declined year on year due to product demand trends and the impact of higher costs resulting from inflation. As a result, consolidated net sales for the cumulative first-quarter consolidated period were ¥17,073 million, up 1.7% year on year, and segment profit (operating profit) was ¥519 million, down 66.0%.」
In the Industrial Materials business, net sales increased 1.7%, while segment profit declined 66.0% due to higher costs resulting from inflation and other factors, putting pressure on progress in improving profitability. - FY2022AdvancedAnnual report
「During the consolidated fiscal year, net sales increased year on year due to price increases for sustainable materials and firm product demand for decorative materials. Although price increases and other measures improved profitability, operating profit declined year on year due to the recognition of goodwill impairment loss, primarily caused by a higher discount rate for a European subsidiary in the sustainable materials business, as well as increased energy and labor costs resulting from inflation.」
Although product price increases improved profitability, operating profit in the Industrial Materials business declined to ¥3,390 million due to inflation-related costs and goodwill impairment at a European subsidiary. - FY2022-Q3AdvancedAnnual report
「During the cumulative third-quarter consolidated period, demand for metallized paper in sustainable materials and products in the decorative materials field remained firm, and net sales increased year on year. Despite the impact of higher raw material and energy prices and increased labor costs, operating profit increased year on year due to firm product demand and revisions to selling prices for some products. As a result, consolidated net sales for the cumulative third-quarter consolidated period were ¥54,947 million, up 24.0% year on year, and segment profit (operating profit) was ¥4,529 million, up 13.8%.」
In the Industrial Materials business, firm demand and the contribution from revisions to selling prices resulted in net sales of ¥54,947 million and segment profit of ¥4,529 million, exceeding the previous year. - FY2022-Q2AdvancedAnnual report
「Although higher prices for raw materials and energy and increased labor costs, mainly in the United States, weighed on profitability, operating profit increased year on year due to firm product demand and revisions to selling prices for some products. As a result, consolidated net sales for the cumulative second-quarter consolidated period were ¥36,169 million, up 21.0% year on year, and segment profit (operating profit) was ¥3,393 million, up 21.9%.」
In the Industrial Materials business, net sales and segment profit exceeded the previous year despite the impact of higher costs, supported by firm demand and revisions to selling prices for some products. - FY2022-Q1AdvancedAnnual report
「During the cumulative first-quarter consolidated period, product demand remained firm for mobility and home appliances in the decorative materials field and for metallized paper in the sustainable materials field, and net sales increased year on year. Although higher prices for raw materials and energy and rising labor costs, mainly in the United States, weighed on profitability, operating profit increased year on year due to firm product demand and price increases for some products. As a result, consolidated net sales for the cumulative first-quarter consolidated period were ¥16,785 million, up 16.9% year on year, and segment profit (operating profit) was ¥1,528 million, up 26.5%.」
In the Industrial Materials business, higher raw material, energy and labor costs weighed on profitability, while firm demand and price increases for some products drove net sales and segment profit above the previous year. - FY2021-Q3AdvancedAnnual report
「During the cumulative third-quarter consolidated period, performance was generally strong, although some areas were affected in the second half by adjustments due to semiconductor shortages and other factors, and net sales increased year on year. In addition to the impact of product demand, operating profit improved substantially year on year due to improvements in the earnings structure. As a result, consolidated net sales for the cumulative third-quarter consolidated period were ¥44,291 million, up 26.0% year on year, and segment profit (operating profit) was ¥3,969 million, up 801.6%.」
The Industrial Materials business recorded net sales of ¥44,291 million and segment profit of ¥3,969 million, supported by demand and improvements in the earnings structure despite some adjustments due to semiconductor shortages. - FY2021-Q2AdvancedAnnual report
「During the cumulative second-quarter consolidated period, product demand remained strong for mobility and home appliances in the decorative materials field and for metallized paper in the sustainable materials field, and net sales increased substantially year on year. In addition to increased product demand, operating profit improved substantially year on year due to improvements in the earnings structure. As a result, consolidated net sales for the cumulative second-quarter consolidated period were ¥29,866 million, up 33.3% year on year, and segment profit (operating profit) was ¥2,778 million, compared with a segment loss (operating loss) of ¥35 million in the same period of the previous year.」
In the Industrial Materials business, increased demand for decorative materials for mobility and home appliances and for metallized paper, together with improvements in the earnings structure, resulted in net sales of ¥29,866 million and segment profit of ¥2,778 million, returning the business to profitability from a loss in the previous year. - FY2021-Q1AdvancedAnnual report
「Operating profit improved substantially year on year due to increased product demand and the effects of earnings-strengthening measures implemented in the previous fiscal year. As a result, consolidated net sales for the cumulative first-quarter consolidated period were ¥14,352 million, up 20.1% year on year, and segment profit (operating profit) was ¥1,200 million, up 58.2%.」
In the Industrial Materials business, increased demand for mobility, home-appliance and metallized-paper products and earnings-strengthening measures resulted in net sales of ¥14,352 million and segment profit of ¥1,200 million, up 58.2% year on year. - FY2020AdvancedAnnual report
「Operating profit returned to positive territory due to increased product demand and the effects of earnings-strengthening measures. As a result, consolidated net sales for the consolidated fiscal year were ¥48,858 million, up 5.6% year on year, and segment profit (operating profit) was ¥869 million, compared with a segment loss (operating loss) of ¥7,278 million in the previous fiscal year.」
The Industrial Materials business moved from an operating loss in the previous fiscal year to operating profit of ¥869 million, driven by the recovery in product demand and earnings-strengthening measures. - FY2020-Q3AdvancedAnnual report
「The operating loss narrowed due to the effects of earnings-strengthening measures and increased product demand. As a result, consolidated net sales for the cumulative third-quarter consolidated period were ¥35,155 million, up 1.0% year on year, and segment loss (operating loss) was ¥204 million, compared with a segment loss (operating loss) of ¥1,841 million in the same period of the previous year.」
In the Industrial Materials business, the operating loss narrowed from ¥1,841 million in the previous year to ¥204 million due to the effects of earnings-strengthening measures and increased demand. - FY2020-Q2AdvancedAnnual report
「Although the Company incurred one-time costs for earnings-strengthening measures, the operating loss was narrower than expected due to the product mix and improved plant productivity. As a result, consolidated net sales for the cumulative second-quarter consolidated period were ¥22,413 million, down 3.7% year on year, and segment loss (operating loss) was ¥727 million, compared with a segment loss (operating loss) of ¥1,375 million in the same period of the previous year.」
In the Industrial Materials business, the operating loss narrowed from ¥1,375 million in the previous year to ¥727 million through the product mix and improved plant productivity, despite COVID-19. - FY2019-Q3RestatedAnnual report
「During the cumulative third-quarter consolidated period, domestic plant utilization declined due in part to slowing demand for products destined for China, while challenges remained in improving profitability at some overseas plants.」
Lower domestic plant utilization due to slowing demand from China and challenges in improving profitability at some overseas plants continue. - FY2019-Q2RestatedAnnual report
「During the cumulative consolidated period of the second quarter, operating rates at domestic plants declined due in part to slower demand for China, while some overseas plants continued to face challenges in reducing quality costs.」
Challenges in reducing quality costs at some overseas plants continue. - FY2019-Q1RestatedAnnual report
「During the cumulative first-quarter consolidated period, demand for key automotive products and metallized paper remained generally firm, but demand for other products fell below expectations. In addition, challenges remained in reducing quality costs at some overseas molding plants.」
Challenges in reducing quality costs related to production quality and yields at some overseas molding plants continue. - FY2018Quality-cost reduction challenges remained for the full fiscal yearAnnual report
「In addition, challenges remained in reducing quality costs, including production yields at some overseas plants falling below initial expectations. As a result, consolidated net sales for the consolidated fiscal year were ¥47,124 million, down 4.6% year on year, EBITDA was ¥3,675 million, down 30.3%, and segment profit (operating profit) was ¥138 million, down 89.6%.」
Shortfalls in production yields at some overseas plants and challenges in reducing quality costs persisted throughout the fiscal year, resulting in a substantial year-on-year decline in Industrial Materials profit. - FY2018-Q2Challenges remain in reducing quality costsAnnual report
「Challenges remained in reducing quality costs, including production yields at some overseas plants falling below initial expectations.」
The Company stated that challenges remained in its quality-cost reduction initiatives, as production yields at some overseas plants fell below expectations. - FY2017First statedAnnual report
「During the consolidated fiscal year, product demand remained generally firm, led by automotive products and metallized paper, while business earnings improved due to measures including reductions in quality costs.」
With demand for automotive products and metallized paper remaining firm, the Industrial Materials business improved earnings through quality-cost reductions and recorded segment profit of ¥1,281 million.