Risk of lower orders and utilization rates due to COVID-19
First written in FY2020. 11 of 17 entries say "Mitigated", first in FY2022-Q2. Latest entry: FY2024.
MEITEC Group Holdings moved to the "Worse" side of this theme in 2020, the same year as the typical company in this theme.
The whole theme swung hardest in 2020: 112 of 175 companies on the "Worse" side.
56 other companies' latest entry also says "Mitigated".
- FY2024MitigatedAnnual report
「The legal classification of COVID-19 was changed to Category 5, and economic and social activity moved toward normalization.」
As restrictions on economic activity related to COVID-19 were eased and major customers’ investment in technology development and the order environment remained firm, the risk of pandemic-related declines in orders and utilization continues to ease. - FY2024-Q3MitigatedAnnual report
「Although the legal classification of COVID-19 was changed to Category 5, economic and social activity moved toward normalization and the economy recovered gradually, the outlook remained uncertain amid tense international conditions and rising resource prices. As the Company’s major manufacturing customers advanced investment in technology development aimed at the next generation, the order environment remained firm.」
The order environment has remained firm as economic and social activity has normalized and major customers have advanced investment in technology development, while the risk of COVID-19-related declines in orders and utilization continues to ease. - FY2024-Q2MitigatedAnnual report
「Although the legal classification of COVID-19 was changed to Category 5, economic and social activity moved toward normalization and the economy recovered gradually, the outlook remained uncertain amid tense international conditions, rising resource prices and the weakening yen. As the Company’s major manufacturing customers advanced investment in technology development aimed at the next generation, the order environment remained firm.」
It states that the order environment remained firm as economic and social activity normalized and major customers advanced investment in technology development, and that the risk of COVID-19-related declines in orders and utilization continued to ease. - FY2024-Q1MitigatedAnnual report
「The legal classification of COVID-19 was changed to Category 5, and economic and social activity moved toward normalization. However, the outlook remained uncertain amid continuing tense international conditions and rising resource prices. As the Company’s major manufacturing customers advanced investment in technology development aimed at the next generation, the order environment remained firm.」
It states that the risk of pandemic-related declines in orders and utilization was lower than in the previous fiscal year, as economic and social activity normalized and major customers advanced investment in technology development. Meanwhile, uncertainty arising from international conditions and rising resource prices remains. - FY2023MitigatedAnnual report
「In the consolidated fiscal year, economic and social activity continued to normalize after the pandemic, the order environment remained firm, and the utilization rate improved, securing an operating margin of at least 13%. The Company assumes that COVID-19 will gradually subside and that economic and social activity will gradually normalize. It expects the pandemic to have no material impact on future performance.」
It explains that the risk of pandemic-related declines in orders and utilization was lower than in the previous fiscal year, as economic and social activity normalized, the order environment remained firm and the utilization rate improved. - FY2023-Q3MitigatedAnnual report
「As the Company’s major manufacturing customers advanced investment in technology development aimed at the next generation, the order environment remained firm.」
As economic and social activity normalized after the pandemic and major customers’ investment in technology development and the order environment remained firm, the risk of pandemic-related declines in orders and utilization has eased from the previous fiscal year. - FY2023-Q2MitigatedAnnual report
「Although restrictions on economic activity related to COVID-19 were eased and the transition to a new phase of living with COVID-19 progressed, the economy recovered gradually, while the outlook remained uncertain amid tense international conditions, rising resource prices and the weakening yen. As the Company’s major manufacturing customers advanced investment in technology development aimed at the next generation, the order environment remained firm.」
The order environment remained firm as restrictions on economic activity were eased and major customers advanced investment in technology development. Although the risk of pandemic-related declines in orders and utilization has eased from the previous fiscal year, uncertainty in the external environment remains. - FY2023-Q1MitigatedAnnual report
「Although restrictions on economic activity related to COVID-19 were eased and economic and social activity moved toward normalization, with signs of an economic recovery, the outlook remained uncertain amid tense international conditions, rising resource prices and the weakening yen. At the Company’s major manufacturing customers, investment in technology development aimed at the next generation was recovering.」
It states that the risk of pandemic-related declines in orders and utilization was lower than in the previous fiscal year, as restrictions on economic activity related to COVID-19 were eased and major customers’ investment in technology development recovered. Meanwhile, uncertainty arising from international conditions, resource prices and the weaker yen remains. - FY2022MitigatedAnnual report
「In the consolidated fiscal year, although the business was affected by COVID-19, the utilization rate improved as orders recovered, securing an operating margin of at least 10%.」
It explains that although the impact of the pandemic continued, the utilization rate improved as orders recovered, securing an operating margin of at least 10%. - FY2022-Q3MitigatedAnnual report
「Investment in technology development with a view to the next generation at the Company’s major customers, large manufacturers, continued to recover, and the Company’s orders entered a recovery trend.」
Although restrictions on economic activity and uncertainty about the outlook due to COVID-19 remained, investment in technology development by major customers and orders showed signs of recovery. - FY2022-Q2MitigatedAnnual report
「Investment in technology development with a view to the next generation at the Company’s major customers, large manufacturers, continued to recover, and the Company’s orders showed signs of recovery.」
Although restrictions on economic activity and uncertainty about the outlook due to COVID-19 continued, investment in technology development by major customers recovered, and orders showed signs of recovery. - FY2022-Q1MaterialisedAnnual report
「Investment in technology development with a view to the next generation at the Company’s major customers, large manufacturers, showed signs of recovery, and the Company’s order environment also showed signs of improvement, although the outlook remained uncertain. Against this backdrop, the Company actively recruited with a view to medium- and long-term growth, resulting in 764 new employees joining in April (MT: 462; MF: 302), increasing the number of engineer employees in the Group. Because training was conducted with the prevention of COVID-19 transmission given top priority and rigorous attention paid to safety, assigning new employees took time. In addition, the difficult order environment continued, causing utilization to decline from the previous year.」
Although customers’ investment in technology development and the order environment showed signs of recovery, the effects of delays in assignments, the difficult order environment and lower utilization due to the spread of COVID-19 also actually occurred during the quarter. - FY2021MaterialisedAnnual report
「During the fiscal year, the assignment of new employees was delayed compared with usual and the difficult order environment caused lower utilization due to the impact of COVID-19, but the Company maintained an operating margin of at least 10%.」
The delays in assignments, deterioration in the order environment and lower utilization resulting from COVID-19 anticipated at the end of the previous fiscal year occurred throughout the year. The Company explains that it maintained an operating margin of at least 10%. - FY2021-Q3MaterialisedAnnual report
「At the Company’s major customers, large manufacturers, investment in technology development with a view to the next generation weakened in some areas, making the Company’s order environment difficult. Against this backdrop, aggressive recruitment before the spread of COVID-19 resulted in 616 new employees joining the Company in April 2020 (MT: 399; MF: 217), increasing the number of engineer employees in the Group. However, training was conducted with the prevention of COVID-19 transmission given top priority, resulting in much greater delays than usual in assigning new employees. In addition, the difficult order environment caused utilization to decline, while customers’ reductions in overtime intensified following requests to refrain from going out at night, causing working hours to decline. As a result, revenue decreased from the previous fiscal year, although progress was broadly in line with the internal plan.」
The deterioration in the order environment, delays in training and assignments, and declines in utilization and working hours associated with COVID-19 also actually occurred during the nine-month period ended the third quarter. - FY2021-Q2MaterialisedAnnual report
「However, training was conducted with the prevention of COVID-19 transmission given top priority, resulting in much greater delays than usual in assigning new employees. Combined with the increasingly difficult order environment, this caused utilization to decline from the usual level. In addition, customers’ reductions in overtime intensified following requests to refrain from going out at night in early spring, and the subsequent recovery was weak, causing working hours to decline from the usual level.」
The Company has reconfirmed that the deterioration in the order environment, delays in assignments and declines in utilization and working hours resulting from COVID-19, anticipated at the end of the previous fiscal year, actually occurred during the six-month period ended the second quarter. - FY2021-Q1MaterialisedAnnual report
「Aggressive recruitment before the spread of COVID-19 resulted in 616 new employees joining the Company in April (MT: 399; MF: 217), increasing the number of engineer employees in the Group. However, training was conducted with the prevention of COVID-19 transmission given top priority, resulting in much greater delays than usual in assigning new employees. Combined with the increasingly difficult order environment, this caused utilization to decline from the usual level. In addition, as customers intensified efforts to reduce overtime in response to requests to refrain from going out at night, working hours declined due to lower overtime.」
The effects of COVID-19 on orders, employee assignments and utilization anticipated at the end of the previous fiscal year actually emerged in the first quarter. Although the Company hired 616 new employees, utilization and working hours declined due to delays in training and assignments, the difficult order environment and customers’ reductions in overtime. - FY2020First statedAnnual report
「Although COVID-19 had no impact on the Group’s results or financial position during the fiscal year, business sentiment deteriorated rapidly from the end of the fiscal year due to the spread of COVID-19, making the outlook for the Company’s order environment highly uncertain. The Company expects impacts such as lower utilization over a certain period going forward. At present, it expects lower utilization in the first half of 2020 and other impacts resulting from delays in assigning new employees, but does not anticipate a significant decline in earnings.」
The Company describes the spread of COVID-19 after the fiscal year-end as a new risk that could lead to a deterioration in the order environment, delays in assigning new employees and lower utilization. It explains that there was no impact on results or the financial position during the fiscal year.