Restructuring and Intensifying Competition in the Construction Equipment Rental Industry
First written in FY2022-Q3. 2 of 6 entries say "Materialised", first in FY2022. Latest entry: FY2026.
Gecoss moved to the "Worse" side of this theme in 2022, the same year as the typical company in this theme.
The whole theme swung hardest in 2026: 21 of 39 companies on the "Worse" side.
0 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「In the construction machinery business, we focused on improving profitability by replacing the asset composition. As a result of these and other initiatives, net sales increased 1.3% year on year to ¥14,765 million and ordinary profit increased 20.2% to ¥391 million.」
The construction machinery business achieved higher sales and profit through changes to its asset composition, partially mitigating the previous deterioration in earnings caused by intensifying competition and lower sales of used assets. - FY2025ReframedAnnual report
「In the construction machinery business, the company reviewed its asset composition, increasing the proportion of new and more profitable products and improving lease-related earnings. However, due in part to a decline in sales of used assets, net sales fell 1.1% year on year to ¥14,582 million and ordinary profit fell 23.0% to ¥325 million.」
The explanation of the earnings environment in the construction machinery business has been updated from the previous reference to lower market unit prices for core products to a structure in which lease-related earnings improved through a review of the asset composition and expansion of new products, but profit declined due to lower sales of used assets. - FY2024WorsenedAnnual report
「Improving profitability in the construction machinery business. The company began working to improve asset efficiency following the integration of the 5 construction machinery subsidiaries, but profitability declined due to lower market unit prices for its core products. It is currently focusing on reviewing its asset composition and identifying new core products.」
The impact of lower market unit prices for core products on profitability was specifically described in relation to competition and pricing conditions in the construction machinery rental industry. Reviewing the asset composition and identifying new core products are presented as countermeasures. - FY2023-Q1MaterialisedAnnual report
「However, during the first quarter of the current consolidated cumulative period, net sales increased 7.6% year on year to ¥25,892 million, while operating profit fell 24.8% to ¥673 million, ordinary profit fell 22.6% to ¥780 million, and quarterly net profit attributable to owners of the parent fell 30.4% to ¥490 million, resulting in lower profits due to intensifying competition.」
The impact of intensifying competition, including in the construction machinery rental industry, emerged in actual results as declines of 24.8% in consolidated operating profit, 22.6% in ordinary profit, and 30.4% in quarterly net profit attributable to owners of the parent. - FY2022MaterialisedAnnual report
「In the construction machinery business, we strengthened order-taking activities through collaboration between the company and its construction machinery subsidiaries, as well as initiatives in the civil engineering sector. We also decided to integrate the 5 construction machinery subsidiaries and are working to realize the integration benefits at an early stage. As a result, net sales were ¥13,686 million, up 2.7% year on year, while ordinary profit was ¥346 million, down 26.6% year on year, due to the impact of intensifying competition.」
Intensifying competition in the construction machinery rental industry emerged as an actual factor behind the decline in profit in the construction machinery business, with ordinary profit down 26.6% year on year. - FY2022-Q3First statedAnnual report
「Although the construction machinery rental industry is expected to continue growing, consolidation, including the formation of corporate groups by major rental companies, is accelerating and competition is intensifying.」
For the construction machinery rental industry, the company describes the outlook for growth alongside accelerating consolidation, including the formation of corporate groups by major rental companies, and intensifying competition as new business-environment risks.