Deterioration in order competition, utilization rates and costs in the construction equipment business
First written in FY2017-Q1. 19 of 43 entries say "Worsened", first in FY2017-Q3. Latest entry: FY2027-H1.
Wakita & moved to the "Worse" side of this theme in 2025.
0 other companies' latest entry also says "Other".
- FY2027-H1Lower sales division profit offset in part by improved utilization and rental rates in the rental divisionAnnual report
「In the construction equipment business, revenue in the sales division increased as purchasing sentiment among construction equipment rental companies recovered, among other factors. Profit declined, however, because a group company engaged in surveying DX made upfront investments, including equipment installations and hiring, in anticipation of future business expansion. In the rental division, costs increased as certain group companies continued to make upfront investments, including improvements to the IT environment at all locations and stepped-up hiring. Nevertheless, in an operating environment where rental demand remained firm in both the public and private sectors, revenue and profit increased as the effects of the upfront investments made to date became evident, while further progress was made in improving asset efficiency through appropriate rental rate adjustments and higher utilization. As a result, revenue for the construction equipment business as a whole was ¥37.794 billion, up 4.2% year on year, and segment profit was ¥1.128 billion, down 15.6%.」
The sales division reported higher revenue as purchasing sentiment recovered, while investment in surveying DX equipment and personnel reduced profit. In the rental division, the effects of upfront investments, appropriate rental rate adjustments and improved asset efficiency through higher utilization continued to emerge, but the construction equipment business as a whole reported lower profit. - FY2026WorsenedAnnual report
「The provision for shareholder benefit vouchers increased by ¥550 million from the previous fiscal year, with most of the increase recognized in this segment. Upfront investments in personnel and other areas also reduced profit. As a result, construction equipment business revenue was ¥7,683.8 million, up 3.5% year on year, and segment profit was ¥279.6 million, down 15.6%.」
Revenue increased, but construction equipment business profit declined 15.6% year on year due to the additional provision for shareholder benefit vouchers and upfront investment in personnel and other areas. - FY2026-H1WorsenedAnnual report
「In the sales division, sales of equipment preparation systems for the temporary construction industry, which the company had entered in earnest, progressed smoothly, but profit declined despite largely flat revenue due in part to surging purchase prices for imported products at some group companies as a result of the weaker yen. In the rental division, rental demand in both the public and private sectors remained firm, and the company continued to pursue substantial investment in rental assets, expansion of the store network, investment in personnel and other upfront investments aimed at long-term growth. … The utilization rate of shareholder benefit vouchers exceeded expectations, and the recognition of most of the additional provision in this segment became a factor reducing profit.」
Although rental demand and upfront investment continued, higher purchase prices for imported products due to the weaker yen and an additional provision resulting from the higher-than-expected utilization rate of shareholder benefit vouchers reduced profit, leaving construction equipment segment profit down 28.5% year on year. - FY2025-H1Lower profit in the sales division offset by higher profit in the rental division, resulting in overall profit growthAnnual report
「In the sales division of the construction equipment business, revenue and profit declined as some group companies were affected by a downturn in overseas economies and the weaker yen, while customers adopted a wait-and-see approach following the normalization of construction equipment supplies. In the rental division, rental demand in both the private and public sectors remained firm, and revenue increased due to the benefits of substantial investment in rental assets and the expansion of the store network. Profit also increased as specific initiatives actively pursued in the construction equipment business proved effective, including higher utilization of company-owned machinery and passing through higher costs to rental rates.」
The sales division recorded lower revenue and profit due to the downturn in overseas economies, the weaker yen and customers' wait-and-see stance following the normalization of supply. In the rental division, profit increased due to substantial investment, expansion of the store network, higher utilization and the effects of passing through higher costs to rental rates, resulting in higher revenue and profit for the construction equipment business as a whole. - FY2025-Q1MitigatedAnnual report
「Profit also entered an upward trend as specific initiatives actively pursued in the construction equipment business proved effective, including higher utilization of company-owned machinery and passing through higher costs to rental rates.」
Against the previous pressure on profit from higher costs due to substantial investment, delays in passing through higher costs to prices, and disparities in market conditions between regions, the effects of higher utilization of company-owned machinery and passing through higher costs to rental rates have emerged, placing profit in the construction equipment business on an upward trend. - FY2024WorsenedAnnual report
「Rental demand in both the private and public sectors remained firm, and revenue increased due to the benefits of substantial investment in rental assets and the expansion of the store network. However, profit declined because of delays in passing through higher purchase prices for rental assets resulting from higher resource and energy prices, as well as delays in responding to supply-demand disparities following the easing of reconstruction demand in Tohoku and Shinshu.」
Rental demand and revenue increased, but segment profit in the construction equipment business was ¥304.6 million, down 19.7% year on year, due to delays in passing through higher costs to prices and delays in responding to supply-demand disparities in Tohoku, Shinshu and other regions. - FY2024-Q3WorsenedAnnual report
「Rental demand in both the private and public sectors remained firm, and revenue increased due to the benefits of substantial investment in rental assets. However, profit declined because higher prices for resources and energy led to surging purchase prices, while delays in passing those increases through to rental prices for rental assets and disparities in market conditions between regions such as Tohoku and Nagano Prefecture also had an impact. As a result, total construction equipment business revenue was ¥5,410.5 million, up 6.3% year on year, and segment profit was ¥246.5 million, down 12.8%.」
Rental demand and revenue continued to grow, but segment profit in the construction equipment business declined 12.8% year on year due to higher resource and energy prices, delays in passing through higher costs to prices, and disparities in market conditions between regions. - FY2024-Q2WorsenedAnnual report
「Rental demand in both the private and public sectors remained firm, and revenue increased as a result of substantial investment in rental assets. However, profit declined due to disparities in market conditions between regions and delays in passing through higher costs to prices.」
Although rental demand and revenue continued to grow, disparities in market conditions between regions and delays in passing through higher costs to prices emerged as new factors pressuring profit, contributing to lower profit in the rental division. - FY2024-Q1MitigatedAnnual report
「In the rental division of the construction equipment business, firm rental demand centered on public works led to higher utilization of rental assets acquired through substantial investment, increasing both revenue and profit. The sales division remained solid as customers' purchasing appetite showed signs of recovery.」
The rental division, where higher costs and lower profit from substantial investment had been reported through the previous fiscal year, recorded higher revenue and profit as utilization of rental assets increased. The sales division also remained solid as customers' purchasing appetite recovered. - FY2023WorsenedAnnual report
「Rental demand in both the public and private sectors remained firm and revenue increased in the rental division. However, profit declined as cost of sales rose following aggressive investment in rental assets at a high level from the beginning of the fiscal year, and as the division was affected by intensifying price competition accompanying higher construction costs.」
Rental demand and revenue increased, but higher costs from substantial investment in rental assets, together with intensifying price competition accompanying higher construction costs, reduced profit over the full fiscal year. - FY2023-Q3Cumulative profit declined, but profit recovered in the third-quarter accounting periodAnnual report
「In the construction equipment business, revenue and profit in the sales division grew as customers' purchasing appetite recovered. In the rental division, sales increased as rental demand in both the private and public sectors remained firm, and profit recovered during the third-quarter accounting period alone. However, profit declined because cost of sales increased as a result of aggressively pursuing substantial investment in rental assets from the beginning of the fiscal year and higher purchase prices for imported products due to the weaker yen. As a result, total construction equipment business revenue was ¥5,088.1 million, up 7.5% year on year, and segment profit was ¥282.9 million, down 7.9%.」
Sales and rental demand remained firm and revenue increased, with profit recovering in the third-quarter accounting period alone. On a cumulative basis, however, substantial investment in rental assets and higher purchase prices due to the weaker yen pushed up costs, leaving segment profit down 7.9% year on year. - FY2023-Q2WorsenedAnnual report
「Rental demand in both the private and public sectors remained firm and revenue increased in the rental division. However, profit declined because cost of sales increased as a result of aggressively pursuing substantial investment in rental assets and higher purchase prices for imported products due to the rapid depreciation of the yen.」
Rental demand remained firm and revenue increased, but substantial investment in rental assets and higher purchase prices for imported products due to the rapid depreciation of the yen pushed up cost of sales and emerged as specific factors reducing profit. - FY2023-Q1WorsenedAnnual report
「In the sales division of the construction equipment business, revenue and profit grew as customers' purchasing appetite recovered. In the rental division, rental demand, including for public and private projects, remained firm, and revenue increased, but profit declined as the cost of sales rose following aggressive investment in rental assets at a high level. As a result, total construction equipment business revenue was ¥1,624.3 million, up 6.9% year on year, and segment profit was ¥90.7 million, down 23.3%.」
The recovery in purchasing appetite in the sales division and firm rental demand resulted in higher revenue, but higher cost of sales accompanying substantial investment in rental assets reduced profit in the construction equipment business. - FY2022MitigatedAnnual report
「In the rental division of the construction equipment business, rental demand, particularly for public works, remained firm. In the sales division, revenue and profit grew substantially as customers' purchasing appetite showed signs of recovery, resulting in higher revenue and profit for the business as a whole. As a result, construction equipment business revenue was ¥6,354.8 million, up 7.9% year on year, and segment profit was ¥393.0 million, up 11.6%.」
Firm rental demand centered on public works and the recovery in customers' purchasing appetite resulted in higher revenue and profit in the construction equipment business, improving from the lower revenue and profit caused by lower utilization and surging costs in the previous fiscal year. - FY2022-Q3MitigatedAnnual report
「In the rental division of the construction equipment business, rental demand, particularly for public works, remained firm. In the sales division, revenue and profit grew as customers' purchasing appetite showed signs of recovery. As a result, total construction equipment business revenue was ¥4,733.9 million, up 6.7% year on year, and segment profit was ¥307.2 million, up 15.7%.」
In addition to firm rental demand centered on public works, the recovery in customers' purchasing appetite drove growth in sales revenue and profit in the sales division, resulting in higher revenue and profit in the construction equipment business. - FY2022-Q2MitigatedAnnual report
「In the rental division of the construction equipment business, rental demand, particularly for public works, remained firm. In the sales division, customers' purchasing appetite showed signs of recovery, and revenue and profit also grew, supported by continued contributions from consolidated subsidiaries. As a result, total construction equipment business revenue was ¥3,013.6 million, up 4.2% year on year, and segment profit was ¥194.4 million, up 20.7%.」
In addition to firm rental demand and the recovery in customers' purchasing appetite, contributions from consolidated subsidiaries resulted in higher revenue and profit in the construction equipment business, improving from the previous pressure on utilization and profits. - FY2022-Q1MitigatedAnnual report
「In the rental division of the construction equipment business, rental demand, particularly for public works, remained firm, but revenue was largely flat due in part to the temporary suspension of construction projects and the postponement of construction periods and orders caused by COVID-19. The sales division grew in both revenue and profit, partly due to contributions from consolidated subsidiaries. As a result, total construction equipment business revenue was ¥1,519.3 million, up 3.5% year on year, and segment profit was ¥118.2 million, up 16.0%.」
Firm rental demand and contributions from consolidated subsidiaries resulted in higher revenue and profit in the construction equipment business. Although the effects of temporary project suspensions and postponements of construction periods and orders remain, earnings have improved from the lower revenue and profit caused by lower utilization and surging costs in the previous fiscal year. - FY2021RestatedAnnual report
「In the construction equipment business, conditions remained severe due to the suspension or postponement of some construction projects as a result of the spread of COVID-19, lower utilization and unit prices amid deteriorating conditions in the construction market, and surging costs for construction materials, labor and other items, resulting in lower revenue and profit for the business as a whole.」
The full-year results confirmed the pattern of lower revenue and profit caused by the suspension and postponement of construction projects, lower fleet utilization, falling unit prices, and surging material and labor costs. - FY2021-Q3WorsenedAnnual report
「In the construction equipment business, conditions remained severe due to the suspension or postponement of some construction projects as a result of the spread of COVID-19, intensifying competition for orders among industry peers, lower utilization and unit prices amid deteriorating market conditions, and surging prices for construction materials and other items, resulting in lower revenue and profit.」
In addition to the previously identified suspension and postponement of construction projects, lower utilization and surging material costs, the company explicitly cited intensifying competition for orders and falling unit prices, resulting in lower revenue and profit in the construction equipment business. - FY2021-Q2WorsenedAnnual report
「In the construction equipment business, conditions remained severe due to the suspension or postponement of some construction projects as a result of the spread of COVID-19, lower utilization of rental assets amid deteriorating market conditions, and surging prices for construction materials and other items, resulting in lower revenue and profit for the business as a whole.」
In addition to the continuing decline in rental asset utilization and rise in costs from the previous quarter, the suspension and postponement of construction projects due to the infectious disease were explicitly identified, resulting in lower revenue and profit in the construction equipment business. - FY2021-Q1WorsenedAnnual report
「In the construction equipment business, sales revenue progressed favorably against a backdrop of solid market conditions, but the rental division remained under severe conditions due to lower utilization amid deteriorating market conditions and surging costs, resulting in lower revenue and profit for the business as a whole.」
The sales division remained solid, but lower utilization and surging costs in the rental division amid deteriorating market conditions resulted in lower revenue and profit for the construction equipment business as a whole. - FY2020Higher utilization and gross margins outweighed by higher SG&A expenses and falling unit prices, reducing profitAnnual report
「Rental demand in the rental division remained firm and revenue increased, but the division was affected by higher selling, general and administrative expenses accompanying higher sales and falling unit prices due to competition for orders, resulting in higher revenue but lower profit for the business as a whole.」
Although rental demand, fleet utilization and the gross margin on sales improved, higher SG&A expenses and falling unit prices due to competition for orders pressured profits, resulting in higher revenue but lower profit in the construction equipment business. - FY2020-Q3RestatedAnnual report
「Rental demand in the rental division remained firm and revenue increased, but the division was affected by higher selling, general and administrative expenses accompanying higher sales and falling unit prices due to competition for orders, resulting in higher revenue but lower profit for the business as a whole.」
Rental demand and revenue remain firm, but higher selling, general and administrative expenses and falling unit prices due to competition for orders continue to pressure profits. - FY2020-Q2RestatedAnnual report
「In the sales division of the construction equipment business, performance remained solid against a backdrop of companies' willingness to invest in equipment. Rental demand in the rental division also remained firm, but the division could not absorb the increase in selling, general and administrative expenses accompanying higher sales, resulting in higher revenue but lower profit for the business as a whole.」
Sales and rental demand remain firm, but the increase in selling, general and administrative expenses accompanying higher sales cannot be absorbed, resulting in the construction equipment business again showing higher revenue but lower profit. - FY2020-Q1WorsenedAnnual report
「In the sales division of the construction equipment business, performance remained solid against a backdrop of companies' willingness to invest in equipment. Rental demand in the rental division also remained firm, but the division could not absorb the increase in selling, general and administrative expenses, resulting in higher revenue but lower profit for the business as a whole.」
Although sales and rental demand were firm, the increase in selling, general and administrative expenses could not be absorbed, and the construction equipment business has returned to higher revenue but lower profit after the improvement in earnings in the previous fiscal year. - FY2019MitigatedAnnual report
「In the rental division, rental demand in the construction market remained firm, and both the utilization rate for the entire fleet and the gross margin on sales increased. As a result, total construction equipment business revenue was ¥5,228.8 million, up 18.4% year on year, and segment profit was ¥416.1 million, up 8.1%.」
Despite the pressure on profits from falling unit prices and persistently high costs, rental demand, fleet utilization and the gross margin on sales improved, resulting in higher revenue and profit in the construction equipment business. - FY2019-Q3RestatedAnnual report
「In the sales division of the construction equipment business, revenue progressed steadily against firm capital investment demand. In the rental division, rental demand remained firm, and the business as a whole achieved higher revenue and higher profit.」
Strong demand for capital investment in the sales division and rental demand in the rental division have supported continued revenue and profit growth in the construction equipment business. - FY2019-Q2RestatedAnnual report
「The sales division progressed steadily against a firm market backdrop. In the rental division, rental demand remained firm, and the business as a whole achieved higher revenue and higher profit. As a result, revenue for the construction equipment business totaled ¥23,894 million, up 11.7% year on year, and segment profit totaled ¥2,012 million, up 1.6%.」
Higher revenue and higher profit in the construction equipment business continued through the six months ended at the second quarter, supported by the strength of the sales division and firm rental demand in the rental division. - FY2019-Q1MitigatedAnnual report
「The sales division progressed steadily against a firm market backdrop. In the rental division, rental demand remained firm, and the business as a whole achieved higher revenue and higher profit. As a result, revenue for the construction equipment business totaled ¥10,865 million, up 7.0% year on year, and segment profit totaled ¥1,089 million, up 4.0%.」
Unlike the previous pattern of competition for orders and persistently high costs weighing on profit, both the sales and rental divisions achieved higher revenue and higher profit in the quarter, indicating an improvement in the earnings performance of the construction equipment business. - FY2018RestatedAnnual report
「In the sales division of the construction equipment business, revenue progressed steadily as capital investment recovered. In the rental division, rental demand remained firm and revenue increased, but lower rental rates due to competition for orders and persistently high costs related to past capital investment resulted in lower profit.」
Although revenue in both the sales and rental divisions increased as demand recovered, the previously identified pattern of lower rental rates due to competition for orders and persistently high costs related to past capital investment weighing on profit is reiterated. - FY2018-Q3RestatedAnnual report
「In the sales division of the construction equipment business, revenue progressed steadily as capital investment recovered. In the rental division, rental demand remained firm and revenue increased, but lower rental rates due to competition for orders and persistently high costs related to past capital investment resulted in lower profit. As a result, revenue for the construction equipment business totaled ¥33,823 million, up 14.1% year on year, and segment profit totaled ¥3,018 million, down 8.2%.」
Revenue increased in both the sales and rental divisions, but the pattern of lower rental rates due to competition for orders and persistently high costs related to past capital investment weighing on profit remained unchanged from the previous quarter. - FY2018-Q2Demand recovering, but continued pressure on earningsAnnual report
「In the sales division of the construction equipment business, revenue progressed steadily as capital investment recovered. In the rental division, rental demand remained firm and revenue increased, but lower rental rates due to competition for orders and persistently high costs related to past capital investment resulted in lower profit.」
Revenue increased on the recovery in capital investment and firm rental demand, but lower rental rates due to competition for orders and persistently high costs related to past capital investment weighed on profit, resulting in lower profit. - FY2018-Q1RestatedAnnual report
「In the sales division of the construction equipment business, intensified competition for orders among industry peers and a decline in sales of rental assets, together with lower utilization rates, lower rental rates and persistently high costs related to past capital investment in the rental division due to deteriorating market conditions, continued to weigh on the business as a whole.」
The previously identified factors weighing on the earnings environment for the construction equipment business are reiterated: competition for orders and declining sales of rental assets in the sales division, and lower utilization rates, lower rental rates and persistently high costs in the rental division. - FY2017RestatedAnnual report
「In the sales division of the construction equipment business, both public and private capital investment lacked momentum, while competition for orders among industry peers intensified. The rental division was also affected by lower rental rates, sluggish utilization rates and persistently high costs related to past capital investment as market conditions deteriorated, and the business as a whole remained challenging throughout the year.」
The previously identified factors weighing on full-year earnings are reiterated: weak investment and competition for orders in the sales division, and lower rental rates, sluggish utilization rates and persistently high costs in the rental division. - FY2017-Q3WorsenedAnnual report
「Although the environment for our group's core construction equipment business began to show somewhat brighter signs in the Tokyo metropolitan area, regional areas generally saw declines in public works and delays in budget execution. Operating conditions remained challenging due to chronic shortages of construction workers and soaring raw material prices.」
In addition to sluggish public and private investment, competition for orders, lower utilization rates and persistently high costs, chronic shortages of construction workers and soaring raw material prices are cited as additional factors weighing on the earnings environment for the construction equipment business. - FY2017-Q2RestatedAnnual report
「In the sales division of the construction equipment business, competition for orders among industry peers intensified as public and private capital investment remained sluggish. The rental division was also affected by lower utilization rates and persistently high costs resulting from deteriorating market conditions, and the business as a whole remained challenging.」
The previously identified factors weighing on earnings in the construction equipment business are reiterated: weak public and private investment, competition for orders, lower utilization rates in the rental division and persistently high costs. - FY2017-Q1First statedAnnual report
「In the sales division of the construction equipment business, intensified competition for orders among industry peers and a decline in sales of rental assets, together with lower utilization rates and persistently high costs in the rental division due to deteriorating market conditions, continued to weigh on the business as a whole. As a result, revenue for the construction equipment business totaled ¥9,068 million, down 11.6% year on year, and operating profit totaled ¥1,095 million, down 38.6%.」
The earnings environment deteriorated in both the sales and rental divisions of the construction equipment business, resulting in declines in revenue and operating profit.