Steady orders for marine equipment driven by improving shipbuilding market conditions

「In the Power and Heavy Machinery, etc. segment, the decline in the first half was greater than expected, reflecting the difficult comparison following the sharp increase in orders and sales of marine-related equipment in the second half of the previous fiscal year.」

「Although business performance for the interim consolidated accounting period was affected by the reaction to the sharp expansion in orders and sales of marine equipment through the second half of the previous fiscal year, it was within the range assumed at the beginning of the period. In light of current order backlogs and project progress, the segment continues to progress at a pace above expectations.」

「Although business performance for the interim consolidated accounting period was affected by the reaction to the sharp expansion in orders and sales of marine equipment through the second half of the previous fiscal year, it was within the range assumed at the beginning of the period. In light of current order backlogs and project progress, the segment continues to progress at a pace above expectations.」

「Meanwhile, demand for marine engine components aimed at improving fuel efficiency has remained strong. Through accurate management of the order backlog and disciplined production planning, the company has achieved stable on-time delivery rates and profit levels. In addition to recurring orders, inquiries for new business from customers who value the company's reliability have emerged, and its customer base is steadily expanding.」

「The target market for the contract manufacturing business for marine equipment and components is undergoing major transformation in recent years due to tighter environmental regulations and the shift toward sustainable shipping in logistics.」

「In the contract manufacturing business for marine engine components and plant equipment, appetite for environmentally oriented capital investment, including decarbonization and greenhouse gas emissions reductions, remains strong.」

「The company's expansion into new markets created by technological innovation has led to successive orders for large projects, as well as transactions and inquiries from major manufacturers that had previously been beyond expectations.」

「In the power and heavy machinery businesses, revenue progressed steadily as demand related to machine tools continued to trend upward and the volume of contract processing for small marine engine components also increased.」

「Demand in the shipbuilding, plant-related and machine tool-related markets has remained strong since the previous fiscal year.」

「Demand in the shipbuilding, plant-related and machine tool-related markets has remained strong since the previous fiscal year.」

「Demand in the marine engine and machine tool-related markets remained stable, and the order backlog was steadily built up.」

「Although orders for some projects were sluggish due to the semiconductor shortage, demand in the shipbuilding, plant-related and machine tool-related markets remained strong and outweighed these effects.」

「The company focused on sales of contract-manufactured related equipment for the shipbuilding and plant equipment markets, where market conditions remained strong.」

「The contract manufacturing business for ship-related equipment, which accounts for approximately 50% of revenue in this business, had benefited from strong related market conditions in the previous fiscal year but remained sluggish in the current fiscal year due to the resulting reaction. Consequently, the volume of contract manufacturing orders for ship engine bedplates declined, as did revenue.」

「Against a backdrop of strong demand for contract manufacturing of ship-related and plant-related equipment, orders from existing customers increased. In addition, the operating performance of Mimoto Co., Ltd., for which the company acquired all shares in May 2019 and which merged with its subsidiary Sanwa Tesco Co., Ltd. in January 2020, also progressed steadily, with its contribution providing an additional boost.」

「In the power and heavy machinery businesses, orders continued to trend upward from the second quarter onward against a favorable demand environment for contract manufacturing of ship-related and plant-related equipment, and operating performance remained steady.」

「In the power and heavy machinery businesses, orders increased against a favorable demand environment for contract manufacturing of ship-related and plant-related equipment, resulting in generally steady performance.」

「In the power and heavy machinery businesses, the company pursued orders primarily for contract manufacturing of ship equipment components and industrial machinery components amid improving shipbuilding market conditions.」

「As shipbuilding market conditions continued to improve, both orders and sales of ship-related equipment progressed steadily, resulting in solid operating performance.」

「As a result, although many delivery schedules fall in the second half or later, orders received have remained strong compared with the previous fiscal year.」

「Demand for industrial machinery components continued to trend upward against a backdrop of improving shipbuilding market conditions and stable domestic economic conditions.」

「In the power and heavy machinery businesses, demand for industrial machinery components continued to trend upward, supported by improving shipbuilding market conditions and stable domestic economic conditions.」

「In the power and heavy machinery businesses, orders for ship-related equipment remained steady as shipbuilding market conditions continued to improve.」