Declining profit margins due to customer demands for lower prices
First written in FY2019-Q1. 2 of 3 entries say "Materialised", first in FY2023-Q1. Latest entry: FY2023-Q2.
The whole theme swung hardest in 2026: 38 of 84 companies on the "Worse" side.
- FY2023-Q2MaterialisedAnnual report
「Meanwhile, margins declined for certain large projects as a result of price competition when the orders were won.」
Price competition occurred when the large projects were won, and its impact on profitability has continued in the form of lower margins. - FY2023-Q1MaterialisedAnnual report
「Meanwhile, a relatively large number of these backlog projects were won amid price competition, and margins declined as a result of this and other factors.」
The large number of projects won amid price competition has resulted in lower margins, which have materialized as an actual segment loss. - FY2019-Q1First statedAnnual report
「As a result of these developments, sales remained firm and orders received remained above the level of the same period of the previous year. However, because projects subject to customer pricing demands were concentrated in the first quarter, margins remained within the expected range but were subdued.」
While orders received and the order backlog remained strong, the profitability risk of subdued margins due to the recording of projects subject to customer pricing demands was identified explicitly for the first time, and has materialized as an actual decline in margins.