Quick View
| Metric | Current Period | Same Period Last Year | YoY |
|---|---|---|---|
| Revenue | ¥49.49B | ¥48.92B | +1.2% |
| Operating Income | ¥1.06B | ¥0.70B | +50.1% |
| Ordinary Income | ¥1.67B | ¥0.38B | +337.3% |
| Net Income | ¥1.60B | ¥0.92B | +72.7% |
| ROE | 3.3% | 2.0% | - |
Executive Summary
For the cumulative Q3 period of the fiscal year ending March 2026, the Company posted higher revenue and earnings, with non-operating and extraordinary factors contributing to performance in addition to revenue growth. Revenue was ¥49.49B (+1.2% YoY), Operating Income was ¥1.06B (+50.1%), Ordinary Income was ¥1.67B (+337.3%), and Net Income attributable to owners of the parent was ¥1.60B (+72.7%). The Operating Income margin improved to 2.1% from the same period last year but remained low. The sharp increase in Ordinary Income was largely attributable to temporary factors, including ¥0.36B in foreign exchange gains and ¥0.93B in extraordinary income, including insurance proceeds.
Factors Affecting Performance
【Revenue】Revenue was ¥49.49B, a modest increase of +1.2% YoY. By segment, the Housing Building Materials and Equipment Business accounted for the majority at ¥48.69B (98.4% of total, +1.2% YoY), while the Power Generation Business recorded ¥0.79B (1.6% of total, -2.0% YoY), representing a slight decline. While Interior Fittings grew to ¥2.63B, up +8.3% YoY, Flooring and Other Building Materials declined, resulting in divergent performance across product categories.
【Profit and Loss】Operating Income was ¥1.06B (+50.1% YoY), mainly due to profit from the Housing Building Materials and Equipment Business improving from ¥0.65B to ¥0.91B, an increase of +40.8%. The Power Generation Business also maintained a high profit margin of 17.8% and recorded ¥0.14B in profit. Ordinary Income was ¥1.67B (+337.3% YoY), exceeding Operating Income, supported by ¥1.45B in non-operating income, including ¥0.36B in foreign exchange gains. Profit Before Tax was ¥2.59B, with ¥0.93B in extraordinary income, including insurance proceeds, making a significant contribution. Net Income was ¥1.60B (+72.7% YoY), although the high tax burden, with an effective tax rate of approximately 38.3%, limited the conversion into Net Income. Although the Company recorded higher revenue and earnings, the earnings increase was substantially influenced by temporary factors such as foreign exchange gains and extraordinary income, in addition to improved core-business profitability.
Segment Analysis
The Housing Building Materials and Equipment Business recorded revenue of ¥48.69B (98.4% of total, +1.2% YoY), Operating Income of ¥0.91B (+40.8% YoY), and a profit margin of 1.9%. Although it accounts for the majority of Company-wide profit, its profit margin remains low. The Power Generation Business recorded revenue of ¥0.79B (1.6% of total, -2.0% YoY), Operating Income of ¥0.14B (+161.1% YoY), and a profit margin of 17.8%, indicating high profitability. However, its small scale limits its contribution to Company-wide profit, accounting for approximately 13.4% of total Operating Income. The Company’s profitability structure is therefore heavily dependent on the profitability of the Housing Building Materials and Equipment Business.
Key Financial Indicators
【Profitability】The Operating Income margin of 2.1% and Net Income margin of 3.2% both improved but remained low. ROE was 3.3% (under DuPont decomposition: Net Income margin of approximately 3.0% × total asset turnover of 0.465x × financial leverage of 2.22x), indicating limited capital efficiency.【Cash Flow Quality】Although detailed figures for Operating Cash Flow (OCF) and investing cash flow could not be confirmed, the working capital structure—where inventories of ¥5.80B (including ¥7.56B in raw materials) and current liabilities of ¥33.61B exceed current assets of ¥31.18B—suggests prolonged inventory holding periods and collection cycles.【Investment Efficiency】Fixed assets of ¥75.35B account for 70.7% of total assets, indicating that a large portion of assets is tied up in equipment and land. Total asset turnover of 0.465x reflects the asset-intensive nature of the business.【Financial Soundness】The Equity Ratio was 45.0%, while the current ratio was 92.8% (current assets of ¥31.18B / current liabilities of ¥33.61B), below 1x. Cash and deposits stood at only ¥4.00B against short-term borrowings of ¥22.55B. The maturity structure of short- and long-term funding requires attention.
Cash Flow Analysis
As detailed figures from the current-period cash flow statement could not be confirmed, funding trends are analyzed based on changes in the balance sheet. Cash and deposits declined to ¥4.00B from ¥5.44B in the previous year. Short-term borrowings increased to ¥22.55B (¥19.55B in the previous year), while long-term borrowings decreased to ¥17.58B (¥18.38B in the previous year), indicating a shift toward shorter-term funding. Inventories increased to ¥5.80B (¥5.58B in the previous year), and notes and accounts receivable increased to ¥9.32B (¥8.05B in the previous year), suggesting that the accumulation of working capital associated with business growth may be placing pressure on cash resources. The structure in which current liabilities of ¥33.61B exceed current assets of ¥31.18B represents a level that requires monitoring from a liquidity management perspective.
Quality of Earnings
Both recurring and temporary factors contributed to the improvement in earnings for the current period. The ¥1.06B increase in Operating Income reflects core-business growth resulting from improved profitability in the Housing Building Materials and Equipment Business. However, much of the increase to Ordinary Income of ¥1.67B was attributable to ¥1.45B in non-operating income, including ¥0.36B in foreign exchange gains, which could reverse if foreign exchange rates move in the opposite direction. In addition, ¥0.93B in extraordinary income, including insurance proceeds, made a significant contribution to Profit Before Tax of ¥2.59B. As extraordinary losses were only ¥0.01B, the boost to Profit Before Tax was strongly non-recurring in nature. Comprehensive Income was ¥2.56B, exceeding Net Income of ¥1.60B, primarily due to ¥0.81B in foreign currency translation adjustments, reflecting substantial valuation changes in overseas assets. Accordingly, the current-period earnings improvement depended more heavily on non-operating and extraordinary factors than on top-line growth, and the extent of recurring improvement in earnings quality should be assessed cautiously.
Earnings Forecast and Guidance
The progress rate against the Full-Year forecast was 75.0% for Revenue, against a forecast of ¥66.00B, representing a standard level of progress. In contrast, Operating Income reached 96.0% of the ¥1.10B forecast, Ordinary Income reached 139.2% of the ¥1.20B forecast, and Net Income reached 146.9% of the ¥1.00B forecast, already indicating substantial progress. In particular, the excess progress for Ordinary Income and Net Income includes the impact of temporary factors such as foreign exchange gains and extraordinary income. Therefore, although the Full-Year forecasts may have potential for upward revision through Q4, they should be evaluated separately from the growth in recurring earnings power. Notably, the Full-Year Operating Income forecast is -16.1% YoY, which contrasts with the +50.1% YoY result through Q3.
Shareholder Returns
The dividend was ¥12 per share in Q2, and the Full-Year forecast is ¥24 per share, representing an expected increase from the previous year’s actual dividend of ¥12 per share. Based on cumulative Net Income attributable to owners of the parent of ¥1.60B, the Payout Ratio remains low. Based on the Full-Year Net Income forecast of ¥1.00B and total dividends of approximately ¥0.24B, the forecast Payout Ratio is approximately 23.6%. No information regarding share repurchases could be confirmed, indicating that shareholder returns consist solely of dividends. Given the financial position of cash and deposits of ¥4.00B and a current ratio of 92.8%, the dividend burden itself is not large relative to earnings; however, cash levels and reliance on short-term borrowings should also be monitored.
Risk Factors
-
Liquidity and Funding Structure Risk: The current ratio of 92.8% and quick ratio of 75.5% are below 1x. Cash and deposits are only ¥4.00B against short-term borrowings of ¥22.55B. The short-term debt ratio is 56.2%, indicating that the maturity profile of borrowings is skewed toward the short term.
-
Low Profitability and Capital Efficiency: The Operating Income margin of 2.1% and ROE of 3.3% are both below industry median levels. Within an asset-intensive structure in which fixed assets account for 70.7% of total assets, there remains room to improve the Company’s ability to generate profit from invested capital.
-
Earnings Quality Risk: The growth in Ordinary Income and Net Income depends heavily on ¥0.36B in foreign exchange gains and ¥0.93B in extraordinary income, including insurance proceeds. If these temporary factors reverse, the gap between reported earnings and recurring earnings power may become apparent.
Industry Benchmark (For Reference; Company Analysis)
Industry Benchmark (manufacturing)
Profitability and Returns
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Operating Income Margin | 2.1% | 8.6% (4.3%–12.7%) | −6.5pt |
| Net Income Margin | 3.2% | 6.4% (2.8%–10.3%) | −3.2pt |
The Company’s profitability is substantially below the industry median, placing it among the lower-profitability companies within the manufacturing sector.
Growth and Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 1.2% | 3.3% (-2.1%–8.9%) | −2.1pt |
Revenue growth is also below the industry median, placing the Company’s revenue growth pace in the relatively moderate range within the industry.
※Source: Company compilation
Key Points in the Financial Results
-
The +50.1% YoY increase in Operating Income and the 96.0% progress rate against the Full-Year Operating Income forecast are facts indicating improved core-business profitability. However, the Operating Income margin of 2.1% remains below the industry median of 8.6%, and the absolute level of profitability is still in the process of improving.
-
The significant increases in Ordinary Income and Net Income were substantially driven by temporary factors such as ¥0.36B in foreign exchange gains and ¥0.93B in extraordinary income. When assessing the high progress rates for Ordinary Income and Net Income against the Full-Year forecasts—139.2% and 146.9%, respectively— it is useful to take the non-recurring nature of these factors into account.
-
The increase in inventories to ¥5.80B and the working capital and funding structure reflected by a current ratio of 92.8% are facts that warrant monitoring from a cash management perspective even during a period of higher revenue and earnings.
This report is an earnings analysis document automatically generated by AI based on XBRL earnings release data. It does not recommend investment in any specific security. The industry benchmarks are reference information compiled by the Company based on publicly available earnings data. Investment decisions should be made at your own responsibility, and you should consult a professional adviser as necessary.
---End of Report---
AI Financial Analysis
Executive Summary
Wood One delivered a modest top-line increase but a materially stronger operating result in FY2026 Q3 cumulative results. Revenue rose 1.2% year on year to ¥49.49bn. Operating income increased 50.1% to ¥1.06bn, lifting the operating margin to 2.1% from 1.4% a year earlier, a 70bp improvement. Gross profit increased 2.9% to ¥13.51bn. The gross margin improved to 27.3% from 26.8%, a 50bp expansion, indicating that gross-profit improvement exceeded the limited sales growth. SG&A expenses were essentially flat, rising only 0.2% to ¥12.45bn. This cost discipline created positive operating leverage, as SG&A absorbed 92.2% of gross profit versus 94.6% in the prior-year period. Ordinary income rose 337.3% to ¥1.67bn, supported by a swing in foreign-exchange income and lower non-operating expenses. Profit attributable to owners of parent increased 65.8% to ¥1.47bn, equivalent to a 3.0% net margin. However, reported net profit was materially assisted by ¥0.93bn of extraordinary income, principally ¥0.77bn of insurance income. The extraordinary gain represents roughly 63% of profit attributable to owners, so underlying earnings power is weaker than headline net income suggests. The core Housing Building Materials and Equipment business remained the principal earnings engine, generating ¥48.69bn of sales and ¥0.91bn of segment profit. The Power Generation business generated only 1.6% of consolidated revenue but contributed ¥0.14bn of operating profit, with a substantially higher margin than the core business. Balance-sheet liquidity is tight, with current assets below current liabilities and short-term debt materially exceeding cash holdings. The company has nevertheless maintained a moderate debt-to-equity ratio of 1.22x, rather than an aggressive leverage position above 2.0x. Full-year guidance appears conservative relative to the Q3 cumulative outcome: the company has already exceeded its full-year operating-income, ordinary-income, and profit forecasts. The principal issues for the final quarter are the normalization of insurance and FX-related gains, working-capital discipline, refinancing execution, and whether housing-material demand can support the improved gross margin.
Profitability Analysis
The reported annualized DuPont ROE is 4.1%, decomposed into a 3.0% net profit margin, 0.619x asset turnover, and 2.22x financial leverage. The low ROE is primarily attributable to thin margins and modest asset utilization rather than insufficient financial leverage. Financial leverage is meaningful but not excessive, and therefore additional borrowing would not be an attractive substitute for improving core profitability. Operating-margin expansion was the most favorable operating development, rising 70bp year on year to 2.1%. Gross-margin expansion of 50bp and nearly flat SG&A were the drivers: gross profit rose ¥0.38bn while SG&A increased by only ¥0.02bn. This demonstrates positive operating leverage despite only ¥0.57bn of incremental revenue. The Housing Building Materials and Equipment segment increased operating profit 40.8% to ¥0.91bn, while its sales increased 1.2% to ¥48.69bn; its margin improved to 1.9% from 1.3%. The Power Generation segment’s sales declined 2.0% to ¥0.79bn, but operating profit increased 161.1% to ¥0.14bn, raising its margin to 17.8% from 6.7%. Accordingly, the core business is Housing Building Materials and Equipment, but the smaller power operation has a disproportionately favorable profit contribution. Ordinary income growth exceeded operating-income growth because non-operating income increased to ¥1.45bn, including ¥0.36bn of FX gains, while non-operating expenses fell to ¥0.83bn. Interest expense of ¥0.40bn consumed 38.0% of operating income, and interest coverage was only 2.63x, leaving profitability sensitive to funding costs. The five-factor analysis shows an EBIT margin of 2.1%, an owner-attributable tax burden of 0.568, and an interest burden above 1.0x because non-operating income and extraordinary items more than offset interest expense. The effective tax rate based on consolidated profit before tax was 38.3%, above a normal Japanese corporate tax burden and a drag on conversion of pretax income into earnings. The low 2.1% EBIT margin remains the key profitability constraint and is below the 5% level generally associated with a robust manufacturing earnings profile. The margin improvement is encouraging, but its durability depends on continued pricing, input-cost control, and demand in residential construction and renovation markets.
Growth Assessment
Revenue growth of 1.2% was modest and concentrated in the core housing-materials business. Within that segment, joinery materials increased 8.3% to ¥26.32bn and were the main source of growth. Flooring declined 4.2% to ¥5.11bn, other building materials declined 7.3% to ¥14.31bn, and housing equipment declined 2.5% to ¥2.95bn. This mixed product trend indicates that the improvement in consolidated profit was driven more by margin recovery and cost control than by broad-based volume growth. Power-generation revenue fell 2.0%, although its strong profit expansion improved the consolidated earnings mix. The company’s FY2026 full-year forecast calls for revenue of ¥66.00bn, up 1.3% year on year. Q3 cumulative revenue represents 75.0% of this full-year forecast, exactly in line with the standard 75% seasonal progress rate. In contrast, Q3 cumulative operating income of ¥1.06bn equals 96.0% of the ¥1.10bn full-year target, 21 percentage points above standard Q3 progress. Ordinary income of ¥1.67bn equals 139.2% of the ¥1.20bn full-year forecast, and profit attributable to owners of ¥1.47bn equals 146.9% of the ¥1.00bn target. The latter two measures have already exceeded full-year guidance before the fourth quarter, reflecting FX gains and extraordinary insurance income as well as operating improvement. Forecast EPS is ¥107.43, below Q3 cumulative EPS of ¥157.82, reinforcing that management’s guidance embeds significant normalization in Q4. The sustainability of reported earnings growth should therefore be judged primarily on core operating income and the housing-material segment’s margin, rather than on ordinary or net-income growth.
Financial Health
Liquidity requires explicit caution. The current ratio is 92.8%, below 1.0x, and the quick ratio is 75.5%, indicating that current assets do not fully cover current liabilities. Working capital was negative ¥2.43bn. This creates a maturity mismatch because current liabilities totaled ¥33.61bn while current assets totaled ¥31.18bn. Short-term loans were ¥22.55bn, representing 56.2% of interest-bearing debt and exceeding cash and deposits of ¥4.00bn by a wide margin. Cash coverage of short-term debt was only 0.18x, which makes continued access to bank funding and refinancing capacity material. This is the principal financial risk even though the debt-to-equity ratio of 1.22x remains below the 2.0x high-leverage warning threshold. Interest-bearing debt totaled ¥40.14bn, including ¥17.58bn of long-term loans and ¥2.00bn of bonds. Debt represented 45.6% of total capital, above an investment-grade-style 40% reference level but below the 60% level typically associated with more severe capital-structure concern. Interest coverage of 2.63x is below the 3.0x caution threshold, which limits resilience against higher borrowing rates or a decline in operating income. Total equity increased ¥2.32bn year on year to ¥47.94bn, supported by retained earnings growth and positive comprehensive income. Cash and deposits decreased ¥1.44bn, or 26.5% year on year, to ¥4.00bn; this reduction warrants close monitoring given the short-term funding burden. Property, plant and equipment represented 58.9% of total assets, reflecting a capital-intensive asset base that constrains balance-sheet flexibility. Net defined-benefit liabilities were ¥0.72bn, while non-current provisions were ¥0.44bn. Contract liabilities of ¥0.35bn provide a limited operating funding source but do not materially offset the funding concentration in short-term borrowings.
Notable B/S Changes
Cash and deposits: -¥1.44bn (-26.5%) to ¥4.00bn - materially weaker cash reserves heighten liquidity sensitivity given ¥22.55bn of short-term loans. Accounts receivable: +¥1.27bn (+15.7%) to ¥9.32bn - growth materially exceeded the 1.2% revenue increase, requiring monitoring of collection timing and credit quality. Raw materials: +¥0.47bn (+6.6%) to ¥7.56bn - higher material holdings add to working-capital absorption amid elevated annualized inventory days. Property, plant and equipment: +¥40.87bn (+69.5%) to ¥62.72bn - the asset base is highly capital intensive at 58.9% of total assets, increasing the importance of adequate asset returns. Short-term loans: +¥3.01bn (+15.4%) to ¥22.55bn - funding shifted toward short-term borrowings, increasing refinancing exposure. Total equity: +¥2.32bn (+5.1%) to ¥47.94bn - improved capital base supports solvency, although it has not yet translated into strong annualized ROE.
Cash Flow Quality
Reported profit quality is affected by the composition of earnings. Operating income of ¥1.06bn was supplemented by ¥0.36bn of FX gains within non-operating income. Foreign-exchange gains equaled 34.4% of operating income, exceeding the 20% sensitivity threshold and increasing exposure to currency movements. Profit before tax also included ¥0.93bn of extraordinary income, primarily ¥0.77bn of insurance income. After ¥0.01bn of extraordinary losses, net extraordinary gains were ¥0.92bn, equivalent to 62.7% of profit attributable to owners of parent. Consequently, the ¥1.47bn owner-attributable profit figure overstates recurring earnings capacity. The gap between ordinary income of ¥1.67bn and owner-attributable profit of ¥1.47bn was 12.0%, reflecting taxes and non-controlling interests; this is material but not unusual given the ¥0.99bn tax expense. The effective tax rate was 38.3% of profit before tax, while the owner-attributable tax burden was 0.568, both indicating relatively heavy tax leakage. Inventory management is also a cash-conversion concern. Inventories were ¥5.80bn on the reported balance sheet, while separately disclosed raw materials and work in process were ¥7.56bn and ¥2.38bn, respectively. Annualized inventory days were 120 days, above the 90-day warning level. The annualized cash conversion cycle was 142 days, above the 120-day warning level, indicating that a substantial amount of capital is tied up in the production and sales cycle. Accounts receivable increased 15.7% year on year to ¥9.32bn, faster than revenue growth, which should be monitored alongside collection quality. Electronic payables declined 10.7% to ¥2.38bn, reducing one source of supplier financing. These working-capital dynamics, combined with declining cash, increase the importance of inventory normalization and receivables collection.
Dividend Sustainability
The declared interim dividend was ¥12.00 per share. The full-year dividend forecast is ¥24.00 per share, implying a second-half dividend of ¥12.00 per share if maintained. Based on forecast EPS of ¥107.43, the prospective full-year dividend payout ratio is approximately 22.3%. This prospective payout ratio is conservative and well below the 60% sustainability reference level. The interim dividend represents 7.6% of Q3 cumulative EPS of ¥157.82. The calculated payout ratio shown against the earlier profit base is 8.0%, also indicating a low direct earnings distribution burden. Retained earnings were ¥23.87bn, providing a meaningful accounting buffer for dividends. However, dividend capacity should be assessed conservatively because reported Q3 earnings include insurance income and FX gains that are not reliable recurring cash sources. The tight liquidity profile, negative working capital, low cash-to-short-term-debt coverage, and modest interest coverage make debt reduction and working-capital control relevant capital-allocation priorities. On the available figures, the stated dividend is modest relative to earnings and appears supportable, provided core operating profitability is maintained and short-term funding remains accessible.
Risk Assessment
Business risks include Housing-demand risk: the core Housing Building Materials and Equipment business generated 98.4% of revenue, making earnings sensitive to Japanese housing starts, renovation demand, and construction-sector pricing., Product-mix risk: declines in flooring, other building materials, and housing equipment offset growth in joinery materials, indicating uneven demand across the portfolio., Input-cost and pricing risk: the 2.1% operating margin leaves limited capacity to absorb increases in timber, energy, logistics, labor, or other manufacturing costs., Inventory risk: annualized inventory days of 120 days raise the risk of slower-moving stock, markdowns, and cash being locked into the operating cycle., Foreign-exchange risk: ¥0.36bn of FX gains equaled 34.4% of operating income, so currency movements can materially affect earnings outside the core business., Power-generation earnings risk: the segment has high margins but small scale, and its ¥0.79bn revenue declined year on year..
Financial risks include Liquidity risk: the current ratio was 0.93x, quick ratio 0.76x, and working capital negative ¥2.43bn., Refinancing risk: ¥22.55bn of short-term loans accounted for 56.2% of interest-bearing debt, while cash covered only 0.18x of short-term debt., Interest-rate risk: interest coverage was only 2.63x, so higher financing costs or weaker EBIT could pressure earnings and covenant headroom., Debt burden risk: interest-bearing debt of ¥40.14bn and debt/capital of 45.6% limit balance-sheet flexibility despite a manageable 1.22x debt-to-equity ratio., Cash-reserve risk: cash and deposits declined 26.5% year on year to ¥4.00bn..
Key concerns include The most important issue is whether the operating-margin recovery can persist without support from non-recurring insurance income and FX gains., Reported owner-attributable profit includes net extraordinary gains of ¥0.92bn, equivalent to 62.7% of owner-attributable profit., Annualized ROE of 4.1% and ROIC of 1.0% indicate weak capital productivity for a capital-intensive manufacturer., The annualized 142-day cash conversion cycle and receivables growth faster than sales make working-capital execution central to liquidity management., The tax burden is elevated, with a 38.3% effective tax rate and a 0.568 owner-attributable tax burden..
Investment Implications
Key takeaways include Core operating performance improved: operating income rose 50.1% and operating margin expanded 70bp to 2.1%., The Housing Building Materials and Equipment segment is the core business and improved its segment margin to 1.9%, but its product-level sales trends remain mixed., The Power Generation segment provides high-margin diversification, with a 17.8% segment margin, though it remains small at 1.6% of revenue., Full-year earnings guidance is substantially exceeded at Q3 for ordinary income and owner-attributable profit, but this reflects material FX and insurance-related gains., Liquidity and refinancing metrics are the main balance-sheet constraints, particularly the sub-1.0x current ratio and 0.18x cash coverage of short-term debt., Capital efficiency remains weak, with annualized ROE of 4.1% and ROIC of 1.0%, despite the year-on-year earnings recovery..
Metrics to watch include Core Housing Building Materials and Equipment segment revenue and operating margin, Gross-margin retention and SG&A-to-gross-profit ratio, Q4 operating income relative to the ¥1.10bn full-year forecast, Normalization of FX gains and extraordinary insurance income, Cash and deposits relative to ¥22.55bn of short-term loans, Interest coverage and borrowing-cost trends, Annualized inventory days of 120 days and cash conversion cycle of 142 days, Receivables growth and collection performance.
Regarding relative positioning, Wood One’s earnings profile shows improving operating leverage but remains below robust manufacturing profitability benchmarks, with a 2.1% operating margin, annualized 4.1% ROE, and 1.0% ROIC. Its debt-to-equity ratio is moderate rather than extreme, but liquidity is weaker than a conservatively financed peer because current liabilities exceed current assets and short-term borrowings are high relative to cash. The high-margin power-generation operation is a positive contributor, while the much larger housing-materials operation determines the group’s overall competitive and earnings position.