Risk of a construction market downturn and postponement or cancellation of new projects

「In the Building Systems segment, sales of energy-related equipment such as industrial storage batteries and elevator sales contributed, but growth remained sluggish because plans were revised in response to higher materials and equipment costs and labor expenses.」

「In the Building Systems segment, demand for energy-related equipment such as storage systems increased, but sales of elevators, the mainstay products, remained weak because projects were postponed as a result of higher material prices in the construction market.」

「In the Building Systems segment, performance remained strong as the company won orders in the building management field, including elevator equipment and environmental and energy-saving equipment projects, despite the impact of higher construction materials and equipment costs and longer construction periods.」

「In the industries in which the group operates, some inventory adjustments were observed in the industrial equipment market, while labor shortages at construction sites and production sites became apparent」

「In the Building Systems segment, the company was affected by higher construction material prices and longer new-construction schedules caused by labor shortages, but performance remained strong as sales of elevators and power supply equipment and projects to renew existing facilities progressed smoothly.」

「In the Refrigeration and Heating Systems segment, sales of commercial air conditioners and low-temperature equipment remained firm amid a recovery in private consumption and capital investment, although order adjustments caused by labor shortages among contractors had an impact. In the Building Systems segment, the company was affected by higher material prices and longer delivery times in the construction market, but」

「In the Building Systems segment, the company focused on strengthening sales of building management systems and winning new orders for elevators and building equipment-related products, but performance remained weak because of higher material prices and longer delivery times in the construction market.」

「In the Building Systems segment, the company worked to strengthen sales of building management systems and win new orders for elevators and building equipment-related products, but performance remained weak because of higher material prices and longer delivery times in the construction market.」

「In the Refrigeration and Heating Systems segment, sales of room air conditioners, commercial air conditioners and other products provided support amid extreme heat and the recovery in business conditions in the service industry, but performance remained weak because of sluggish building air-conditioning projects and longer delivery times for low-temperature equipment. In the Building Systems segment, contracted construction projects involving elevators and other equipment were completed smoothly, but higher material prices and longer delivery times in the construction market made it difficult to win new orders for elevators and building equipment-related products, resulting in weak performance. As a result, sales in the Refrigeration and Heating Systems and Building Systems business were ¥12.370 billion and operating profit was ¥362 million.」

「In the Refrigeration and Heating Systems segment, sales of heat-protection equipment, low-temperature equipment, room air conditioners and other products remained firm as supply resumed amid increased capital investment by manufacturers and the food industry and stronger consumer demand. However, performance remained weak because of postponed or cancelled building air-conditioning projects and delays in winning new projects. In the Building Systems segment, construction projects involving elevators and other equipment progressed smoothly, but the rise in construction material prices and delivery delays made it difficult to win new projects related to building equipment and building management, resulting in weak performance.」

「Performance remained weak in the second half of the fiscal year because of the impact of longer delivery times for the company's main products, the postponement or cancellation of new projects caused by component shortages, and the lull between major metropolitan redevelopment projects. As a result, sales were ¥18.271 billion, down 8.2% year on year, and operating profit was ¥650 million, down 6.3%.」

「Although performance remained weak because of a lull between major metropolitan redevelopment projects and the postponement or cancellation of new projects, profit increased through sales of high-value-added products and other measures.」

「Although ventilation demand and strong performance in the refrigeration and freezing segment provided support, performance remained weak because of a lull between major metropolitan redevelopment projects and the postponement or cancellation of new projects. As a result, sales were ¥6.308 billion, down 5.2% year on year, and operating profit was ¥130 million, down 28.0%.」

「Although ventilation demand in the Refrigeration and Heating Systems segment and strong performance in the refrigeration and freezing segment provided support in the second half of the fiscal year, sales declined and operating profit decreased because of the post-boom decline in the previously strong construction market and the postponement or cancellation of new projects.」

「② Refrigeration and Heating Systems and Building Systems [Third-quarter consolidated net sales: ¥19.896 billion, down 19.1% year on year; operating profit: ¥693 million, down 30.9%] In the Refrigeration and Heating Systems and Building Systems segments, sales declined and operating profit decreased because of the decline following the previously strong construction market and the postponement or cancellation of new projects.」