Improving production efficiency to meet strong order demand

「After the order environment began to improve in the second half, we worked to improve production efficiency and accelerate project progress by rigorously managing the progress of manufacturing processes in order to recover the decline in the first half. However, we were unable to fully offset the first-half decline by the end of the consolidated fiscal year, at the end of August.」

「In addition, as material prices, including steel prices, were trending upward, the company focused on a cost strategy centered on maintaining appropriate purchasing prices while also improving operational efficiency by reviewing production processes. As a result, revenue in the Power and Heavy Machinery and Other Businesses segment for the fiscal year was ¥3,566 million, up 29.5% year on year, and segment profit was ¥478 million, up 70.2%.」

「In addition, the business continued to receive many large-scale inquiries, and the successive recording of new orders led to higher revenue and production volume, as well as improved production efficiency and margins.」

「To maintain stable production even under these conditions, the Group responded with agile operations, including streamlining production processes and optimizing personnel allocation.」

「In the Power and Heavy Machinery and Other Businesses segment, demand related to machine tools continued to trend upward, while a review of the production process for small marine-engine components progressed business-efficiency improvements. As a result, the company was able to complete more orders than expected, and both revenue and profit performed well.」

「In the Power and Heavy Machinery and Other Businesses segment, improvements to the manufacturing and processing processes related to machine tools increased productivity, accelerating the completion of orders and contributing to improved results.」

「Although overall revenue declined slightly, profit continued to perform well as the company implemented ongoing measures to reduce the cost ratio, including reviewing purchasing costs and securing high-margin projects. As a result, revenue in the Power and Heavy Machinery and Other Businesses segment for the fiscal year was ¥2,220 million, down 0.6% year on year, while segment profit was ¥217 million, up 8.2%.」

「In addition, ongoing cost-reduction and margin-improvement measures, including reviewing purchasing costs and securing projects with high margins, have functioned effectively. As a result of these measures, sales were at about the same level as in the same period of the previous year, while margins increased and business performance remained solid. As a result, sales for the cumulative second-quarter period of the current consolidated fiscal year in the power and heavy machinery business were ¥1,131 million, up 0.7% year on year, and segment profit was ¥107 million, up 25.1% year on year.」

「Demand remained firm in the shipbuilding, plant-related and machine-tool-related markets. In addition, ongoing cost-reduction and margin-improvement measures, including reviewing purchasing costs and securing projects with high margins, functioned effectively. Although sales were slightly below the level of the same period of the previous year, business performance remained solid due to the effect of higher margins.」

「Against the backdrop of increased orders in a buoyant market, the company promoted improvements in production efficiency, including revisions to production plans in anticipation of this increase. As a result, segment profit increased to ¥39 million, compared with ¥2 million in the same period of the previous year.」

「Although delivery schedules for these projects remained concentrated in the latter half of the fourth quarter, construction progress on orders received advanced substantially during the cumulative third-quarter consolidated period, resulting in steady performance.」

「Overall performance was strong as the company improved production efficiency for strong order volumes and was able to reflect the resulting progress in its results.」