Dependence on Production and Sales Trends in the Automotive and Semiconductor Industries
First written in FY2016. 12 of 32 entries say "Worsened", first in FY2017-Q2. Latest entry: FY2026.
Nippo moved to the "Worse" side of this theme in 2019, the same year as the typical company in this theme.
The whole theme swung hardest in 2019: 37 of 69 companies on the "Worse" side.
23 other companies' latest entry also says "Other".
- FY2026Southeast Asian recovery and transition to mass production alongside weakness in China and yield issuesAnnual report
「The segment’s performance remained solid as orders for automotive components recovered with the economic recovery in Southeast Asia, orders for brake-related components from the Vietnam plant, where mass production had got on track, remained steady, and cost-reduction initiatives at the Thailand (Korat) plant contributed to profit. However, performance was affected by the negative impact of weak sales by Japanese automakers in China, and yields for new mass production at the Inazawa plant could not be improved as initially planned, leaving profitability as an issue.」
With regard to dependence on production and sales trends in the automotive industry, recovery in orders in Southeast Asia and the transition to mass production in Vietnam provided support, while weak sales in China and yield issues at the Inazawa plant continued. - FY2026-H1Addition of weak sales in China and new mass-production yield issuesAnnual report
「The segment’s performance remained supported by steady orders for exhaust-related components, particularly from the Indonesia plant in ASEAN, but profitability remained challenging as sales of Japanese automakers in China remained weak, yields for new mass production at the Vietnam and Inazawa plants could not be improved as planned, and orders at the Thailand (Korat) and Malaysia plants declined.」
With regard to dependence on production and sales trends in the automotive industry, weak sales by Japanese automotive manufacturers in China and yield issues in new mass production were identified as specific factors affecting results. Meanwhile, orders at the Indonesia plant remained firm. - FY2025-H1WorsenedAnnual report
「Against this external backdrop, the business environment surrounding the Group continued to be affected by three negative factors: ① continued adjustment in demand for smartphone-related materials, ② operating stoppages resulting from misconduct issues at automotive manufacturers, and ③ the downturn in the ASEAN automotive market.」
Operating stoppages resulting from misconduct issues at automotive manufacturers and the downturn in the ASEAN automotive market were identified as new specific factors affecting dependence on production and sales trends in the automotive industry. - FY2024-Q3RestatedAnnual report
「The performance of this segment was affected by slower orders for powertrain components for China at the Thailand (Bangkok) plant and higher power costs, but was supported by the recovery of domestic customers' production and continuing strong orders, as well as firm orders at the Indonesia and Vietnam plants.」
While slower orders for China and the impact of higher power costs continued, the recovery of domestic customers' production and orders at the Indonesia and Vietnam plants continued to provide support. - FY2024-Q2RestatedAnnual report
「The performance of this segment was supported by the recovery of domestic customers' production and continuing strong orders, as well as firm orders at the Indonesia and Vietnam plants, but was affected by slowing orders for powertrain components for China at the Thailand (Bangkok) plant.」
While orders for China continued to slow, the recovery of domestic customers' production and orders at the Indonesia and Vietnam plants continued to provide support. - FY2024-Q1Weak sales to China alongside recovery in domestic and ASEAN ordersAnnual report
「Orders for powertrain-related components at the Thailand (Bangkok) plant declined due to weak sales of customers' products in China, but domestic customers' production recovered and orders remained strong, while orders at the Indonesia and Vietnam plants also remained firm.」
While orders at the Thailand plant declined due to weak sales of products to China, the recovery of domestic customers' production and strong orders at the Indonesia and Vietnam plants provided support. - FY2023-Q3ASEAN orders and domestic recovery alongside demand adjustmentsAnnual report
「The performance of this segment remained supported by strong orders for powertrain-related components at major ASEAN plants, including the Thailand (Bangkok) and Indonesia plants, while production at domestic customers, which had been forced to cut production due to semiconductor shortages, gradually recovered.」
Dependence on automotive-industry production trends continues, but strong orders at major ASEAN plants and the recovery of domestic customers' production were shown to offset the impact of production cuts resulting from semiconductor shortages. - FY2023-Q1ASEAN orders offset the impact of domestic production cutsAnnual report
「The performance of this segment was supported by strong orders for powertrain-related components at major ASEAN plants, including the Thailand (Bangkok) and Indonesia plants, which enabled the Group to offset the impact of production cuts by domestic customers resulting from semiconductor shortages.」
Although the dependence risk was realized through production cuts by domestic customers due to semiconductor shortages, strong orders at the major ASEAN plants offset the impact. - FY2022RestatedAnnual report
「Although shortages of semiconductors and electronic components slowed recovery production across the industry, performance remained strong, supported by a substantial recovery in orders for powertrain-related components at the Thailand (Bangkok) and Indonesia plants, together with improved performance following the withdrawal from the Mexico manufacturing business.」
Dependence on production trends in the automotive and electronic-components industries continues, while order recovery in Thailand and Indonesia coexisted with slower production resulting from shortages of semiconductors and electronic components. - FY2022-Q3Recovery alongside the impact of supply shortagesAnnual report
「The performance of this segment remained strong, supported by customers' production plans, which had recovered from the same period of the previous year, although shortages of semiconductors and electronic components slowed customers' recovery production. Performance also improved following the withdrawal from the Mexico manufacturing business. As a result, sales for the nine months ended the third quarter of the current fiscal year were ¥9,810 million, compared with ¥11,620 million in the same period of the previous year, and segment profit was ¥750 million, up 177.5% year on year.」
Customer production plans recovered from the same period of the previous year, and Mobility segment profit increased to ¥750 million, while the impact of semiconductor and electronic-component shortages in slowing recovery production continued. - FY2022-Q2WorsenedAnnual report
「During the six months ended the second quarter of the current fiscal year, the business environment surrounding the Group was affected at manufacturing sites in various countries by production adjustments at its major customers, automotive-parts and printer manufacturers, amid shortages of semiconductors and electronic components resulting from the spread of COVID-19.」
Production adjustments by automotive-parts and printer manufacturers affected manufacturing sites in various countries through shortages of semiconductors and electronic components. - FY2022-Q1MitigatedAnnual report
「The performance of this segment remained strong, supported by customers' production plans, which had recovered, together with improved performance following the withdrawal from the Mexico manufacturing business. As a result, segment sales for the three months ended the first quarter of the current fiscal year were ¥3,391 million, compared with ¥3,797 million in the same period of the previous year, and segment profit was ¥307 million, up 658.9% year on year.」
Dependence on production trends among automotive manufacturers and others continues, but Mobility segment profit rose 658.9% year on year, supported by recovered customer production plans. - FY2021WorsenedAnnual report
「The performance of this business was affected by production cuts at automotive and automotive-parts manufacturers resulting from the spread of COVID-19, which reduced automotive-parts orders both domestically and overseas.」
The decline in orders resulting from production cuts by automotive manufacturers and others was reflected in full-year results, with Mobility sales down 12.8% year on year and segment profit down 47.9%. - FY2021-Q3Domestic recovery and continued impact in ASEANAnnual report
「The performance of this business for the nine months ended the third quarter of the current fiscal year was affected by production cuts at automotive and automotive-parts manufacturers resulting from the spread of COVID-19, which reduced automotive-parts orders both domestically and overseas. In the third quarter, the ASEAN region continued to be affected by these production cuts, while domestic orders had recovered to the level of the previous fiscal year.」
Although the decline in orders due to production cuts by automotive and automotive-parts manufacturers continued, domestic orders recovered to the previous fiscal year's level, while the impact continued in the ASEAN region, demonstrating regional differences. - FY2021-Q2WorsenedAnnual report
「The performance of this business was affected by production cuts at automotive and automotive-parts manufacturers resulting from the spread of COVID-19, and orders for automotive components declined at both domestic and overseas plants. As a result, segment sales for the six months ended the second quarter of the current fiscal year were ¥7,229 million, down 22.0% year on year, and segment profit was ¥79 million, down 84.9%.」
Declining orders for automotive components continued due to production cuts by automotive and automotive-parts manufacturers, with Mobility sales down 22.0% year on year and segment profit down 84.9%. - FY2021-Q1WorsenedAnnual report
「The performance of this business was affected by production cuts at automotive manufacturers resulting from the spread of COVID-19, which led to lower orders for automotive-related components at both domestic and overseas plants. As a result, segment sales for the three months ended the first quarter of the current fiscal year were ¥3,798 million, down 18.2% year on year, and segment profit was ¥40 million, down 83.8%.」
Orders for automotive-related components actually declined due to production cuts by automotive manufacturers, with Mobility sales down 18.2% year on year and segment profit down 83.8%. - FY2020MitigatedAnnual report
「The Group primarily conducts business with the automotive and electronic-components industries. It is working to diversify the industries on which it depends by adding the medical-equipment industry, which it has designated as a growth area. However, the Group's results could be affected by production and sales trends among automotive manufacturers and electronic-components manufacturers generally, with whom it has substantial transaction volumes.」
The risk of dependence on the automotive and electronic-components industries remains, while diversification of the industries on which the Group depends, including the medical-equipment industry as a growth area, was explicitly identified as a response. - FY2020-Q3WorsenedAnnual report
「The performance of this business was affected by continued weak smartphone-related demand and declining orders for high-performance materials for electronic-components manufacturers, but benefited from increased orders for fuel-cell-related materials in which the Group had been involved since the customers' product-development stage, as well as increased prototype orders, including gypsum casting. As a result, segment sales for the nine months ended the third quarter of the current fiscal year were ¥13,017 million, down 9.0% year on year, and segment profit was ¥762 million, up 4.3%.」
Weak smartphone-related demand and declining orders for high-performance materials continued, and Electronics sales fell 9.0% year on year. Meanwhile, segment profit rose 4.3% on increased orders for fuel-cell-related materials and prototypes. - FY2020-Q2WorsenedAnnual report
「The performance of this business was supported by firm orders for water-heater-related components, but was affected by continued weak smartphone-related demand in electronic components and declining orders for wiring-board materials for high-end applications. As a result, segment sales for the six months ended the second quarter of the current fiscal year were ¥8,425 million, down 10.8% year on year, and segment profit was ¥464 million, down 6.1%.」
Weak smartphone-related demand and declining orders for wiring-board materials for high-end applications continued, and Electronics sales and segment profit fell below the same period of the previous year. - FY2020-Q1WorsenedAnnual report
「The performance of this business was supported by firm orders for water-heater-related components for residential equipment, but was affected by continued weak smartphone-related demand in electronic components and declining orders for high-performance materials. As a result, segment sales for the three months ended the first quarter of the current fiscal year were ¥4,237 million, down 10.1% year on year, and segment profit was ¥217 million, down 8.9%.」
Weak smartphone-related demand continued, and the decline in orders for high-performance materials became apparent. Both Electronics sales and segment profit fell below the same period of the previous year. - FY2019WorsenedAnnual report
「Orders for wiring-board materials for robots and machine tools and for automotive power-device-related materials remained firm, but orders declined as smartphone-related demand entered an adjustment phase, affecting performance. As a result, full-year segment sales were ¥14,269 million, down 7.7% year on year, and segment profit was ¥222 million, down 13.9%.」
The adjustment in smartphone-related demand and the decline in orders continued, and both Electronics sales and segment profit fell below the previous year's levels. - FY2019-Q3WorsenedAnnual report
「Orders for wiring-board materials for robots and machine tools and for automotive power-device-related materials remained firm, but orders declined as smartphone-related demand entered an adjustment phase, affecting performance. As a result, sales for the nine months ended the third quarter of the current fiscal year were ¥10,949 million, down 5.5% year on year, and segment profit was ¥198 million, down 12.5%.」
The adjustment in smartphone-related demand and the decline in orders continued, with Electronics sales down 5.5% year on year and segment profit down 12.5%. - FY2019-Q2WorsenedAnnual report
「Demand related to smartphones entered an adjustment phase and orders declined, but orders for wiring-board materials for robots and machine tools and for materials related to automotive power devices remained firm. As a result, sales for the six months ended the second quarter of the current fiscal year were ¥7,254 million, down 0.5% year on year, while segment profit was ¥138 million, up 68.9%.」
It was explicitly stated that orders declined as smartphone-related demand entered an adjustment phase, partially realizing the risk of dependence on demand trends in the electronic-components industry. Meanwhile, orders for robots and machine tools and for automotive power-device-related products remained firm. - FY2018RestatedAnnual report
「The Group primarily conducts business with the automotive and electronic-components industries, and its results could be affected by production and sales trends among automotive manufacturers and electronic-components manufacturers generally.」
The risk of dependence on production and sales trends in the automotive and electronic-components industries continues. - FY2018-Q3RestatedAnnual report
「The performance of this business was driven by smartphone demand, with strong orders for materials accompanying increased production by related electronic-components manufacturers, as well as strong orders for wiring-board materials for robots and machine tools.」
Dependence on production and sales trends in the electronic-components industry continues, but smartphone demand and increased production by electronic-components manufacturers were positive factors in the current quarter. - FY2018-Q2RestatedAnnual report
「The performance of this business was driven by smartphone demand, with strong orders for materials accompanying increased production by related electronic-components manufacturers, as well as strong orders for wiring-board materials for robots and machine tools.」
Dependence on production and sales trends in the electronic-components industry continues, but smartphone demand and increased production by electronic-components manufacturers were positive factors in the current quarter. - FY2018-Q1RestatedAnnual report
「The performance of this business was driven by smartphone demand, with strong orders for materials accompanying increased production by related electronic-components manufacturers, as well as strong orders for wiring-board materials for robots and machine tools.」
Dependence on production and sales trends in the automotive and electronic-components industries continues, but smartphone demand and increased production by electronic-components manufacturers were cited as positive factors for the Electronics business in the current quarter. - FY2017RestatedAnnual report
「The Group primarily conducts business with the automotive and electronic-components industries, and its results could be affected by production and sales trends among automotive manufacturers and electronic-components manufacturers generally.」
The risk of dependence on production and sales trends in the automotive and electronic-components industries continues. - FY2017-Q3RestatedAnnual report
「The performance of this business was affected by the sluggish domestic electronic-components market amid the yen's appreciation and slowing smartphone demand. As a result, segment sales for the nine months ended the third quarter of the current fiscal year were ¥9,580 million, down 31.8% year on year.」
The yen's appreciation, slowing smartphone demand and the sluggish domestic electronic-components market continued to be cited as performance factors, and Electronics sales fell 31.8% year on year. - FY2017-Q2WorsenedAnnual report
「The performance of this business was supported by strong orders for wiring-board materials for consumer electronics, but was affected by the sluggish domestic electronic-components market amid the yen's appreciation and slowing smartphone demand. As a result, segment sales for the six months ended the second quarter of the current fiscal year were ¥6,131 million, down 37.8% year on year.」
Slowing smartphone demand and the sluggish domestic electronic-components market were explicitly cited, and Electronics sales fell 37.8% year on year. - FY2017-Q1MaterialisedAnnual report
「The performance of this business was supported by strong orders for wiring-board materials for consumer electronics, but was affected by weaker demand for materials and inspection jigs and tools for electronic components used in mobile communications devices, as well as the winding down of transactions involving materials for fuel cells.」
It is stated that weaker demand related to electronic components and the winding down of transactions involving fuel-cell materials actually affected the Electronics business's results in the current quarter. - FY2016MaterialisedAnnual report
「The Group primarily conducts business with the automotive and semiconductor industries, and its results could be affected by production and sales trends among automotive manufacturers and semiconductor manufacturers generally.」
A decline in sales resulting from changes in major customers' outsourced production plans has been disclosed, indicating that customer and industry trends have affected actual results.