Supply and Demand Fluctuations and Business Cycles in Machine Tools and Precision Equipment

「Revenue increased as exports of machine tools handled in Japan remained strong and handling of power conversion equipment increased.」

「Sales and segment profit both increased as handling of medical equipment, which had declined sharply in the previous year, recovered, handling of small precision equipment remained strong, and the company advanced the pass-through to customers of higher subcontracting costs.」

「(Machine tools) Revenue declined because ocean freight charges associated with exports fell substantially from the previous fiscal year.」

「In addition to the decline in machine-tool and medical-equipment handling, we were unable to fully offset the increase in subcontracting costs through negotiations to pass the higher costs on to customers, despite continuing those negotiations. As a result, both revenue and segment profit declined.」

「Although volumes of small precision equipment increased due to customers expanding production, revenue declined because machine tool volumes, which had performed well in the previous fiscal year, decreased substantially.」

「As a result, revenue increased because machine tool volumes continued to perform well.」

「Revenue and segment profit both increased because the machine tool volumes that had recovered in the previous year continued to perform well.」

「In addition to the increase in handling volumes for machine tools, which had fallen substantially in the previous year, handling volumes for semiconductor manufacturing equipment performed well against a backdrop of a sharp increase in global semiconductor demand, resulting in increases in both net sales and operating profit.」

「In addition to an increase in machine tool volumes, which had declined substantially in the previous year, volumes of semiconductor manufacturing equipment and small precision equipment remained strong against a backdrop of a sharp increase in global semiconductor demand.」

「Revenue and operating profit both increased because machine tools, whose volumes had declined substantially in the previous year, recovered, and volumes of semiconductor manufacturing equipment and small precision equipment also increased.」

「In addition to the recovery in machine tools, whose handling volume had fallen substantially in the previous year, handling volumes for small precision equipment also recovered, resulting in increases in both net sales and operating profit.」

「Against this business backdrop, the Group's handling volumes for machine tools fell substantially, while handling volumes for other products generally remained sluggish, and challenging conditions continued.」

「Against this business backdrop, the Group's handling volumes for machine tools and medical equipment fell substantially, while handling volumes for other products generally remained sluggish, resulting in declines in both net sales and operating profit.」

「Revenue and operating profit both declined because, in addition to a substantial decrease in machine tool volumes, volumes of other products also generally remained sluggish.」

「The product categories handled by the Group are classified into four categories: small precision equipment, large precision equipment, medical equipment, and machine tools. In particular, machine tools and large precision equipment undergo periodic expansions and contractions, and if they enter a contraction phase, revenue may decline sharply and have a significant impact on business performance.」

「Revenue and segment profit both declined because, in addition to lower volumes of air cargo and semiconductor manufacturing equipment, volumes of machine tools, whose industry had remained buoyant, also peaked.」

「Revenue and operating profit both declined because, in addition to lower volumes of semiconductor manufacturing equipment and air cargo, volumes of machine tools, whose industry had remained buoyant through the previous year, also peaked.」

「However, net sales and operating profit both declined because, in addition to a decrease in semiconductor manufacturing equipment handling, machine tool handling, which had benefited from favorable industry conditions through the previous year, also peaked out.」

「During the cumulative third quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「During the cumulative second quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that could materially affect investors’ decisions, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」

「The balance of supply and demand for the product categories handled by the Group, including machine tools and precision equipment such as medical equipment, is another factor with a material impact on the Group's business performance. Supply and demand in these industries fluctuate, and machine tools in particular are cyclical, so we recognize that they can have a significant impact on business performance and other results. In the first quarter, supply and demand remained at a high level, which had a positive impact on the Group's results.」

「The balance of supply and demand for the product categories handled by the Group, including machine tools and precision equipment such as medical equipment, is another factor with a material impact on the Group's business performance. Supply and demand in these industries fluctuate, and machine tools in particular are cyclical, so we recognize that they can have a significant impact on business performance and other results.」