Rising Material Prices and Subcontracting Construction Costs
First written in FY2016. 13 of 29 entries say "Restated". Latest entry: 2026-07-24.
Chugai Ro 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 2022: 32 of 49 companies on the "Worse" side.
14 other companies' latest entry also says "Mitigated".
- 2026-07-24MitigatedEarnings
「We promoted the appropriate pass-through of increases in labor and raw-material costs into prices and operational efficiency improvements. Operating loss was ¥209 million, compared with a loss of ¥371 million in the same period of the previous year, and ordinary loss was ¥108 million, compared with a loss of ¥252 million, with both losses narrowing.」
Price pass-through and operational efficiency improvements in response to higher labor and raw-material costs were reported, and operating and ordinary losses narrowed from the same period of the previous year. - FY2026MitigatedAnnual report
「We are working to pass appropriate portions of increases in labor and raw-material costs into prices and to reduce procurement costs.」
Although labor and raw material costs have continued to rise, the Company combined price pass-through with procurement cost reductions and recorded operating income of ¥2,879 million and ordinary income of ¥3,110 million. - FY2026-H1MaterialisedAnnual report
「We are working to pass appropriate portions of increases in labor and raw-material costs into prices and to reduce procurement costs.」
Increases in labor and raw material costs materialized in the business environment, and their impact on operating income through higher costs was disclosed for the heat treatment business and other businesses. At the same time, the Company is working to pass on costs to prices and reduce procurement costs. - FY2025-H1MitigatedAnnual report
「In terms of earnings, operating profit increased to ¥77 million, compared with an operating loss of ¥250 million in the year-earlier period, and ordinary profit increased to ¥232 million, compared with an ordinary loss of ¥105 million, as the company actively pursued procurement cost reductions and other measures.」
Against a backdrop of surging raw material prices and other factors, the Company actively worked to reduce procurement costs, improving operating income and ordinary income from losses in the same period of the previous year to profits. - FY2024MitigatedAnnual report
「The Group is working to mitigate the risk by diversifying suppliers, placing orders for materials earlier and building cooperative relationships with contractors.」
Measures to address the risk of rising material and subcontracting costs, including supplier diversification, earlier ordering and the establishment of cooperative relationships with contractors, have continued. In FY2024, the Company also worked to reduce procurement costs, and operating profit increased. - FY2024-Q3MaterialisedAnnual report
「In terms of earnings, although the company made diligent efforts to reduce procurement costs and took other measures in response to surging raw material and transportation costs, it posted an operating loss of ¥439 million, compared with a loss of ¥568 million in the year-earlier period, and an ordinary loss of ¥194 million, compared with a loss of ¥350 million.」
Despite efforts to reduce procurement costs, rising material- and transportation-related costs were actually disclosed as affecting the operating loss and ordinary loss. - FY2024-Q2MaterialisedAnnual report
「In terms of profit, although the Company worked to reduce procurement costs in response to surging raw material and transportation costs, it recorded an operating loss of ¥250 million (a loss of ¥692 million in the same period of the previous year) and an ordinary loss of ¥105 million (a loss of ¥566 million in the same period of the previous year).」
The increase in material- and construction-related costs previously identified as a risk was actually disclosed as an impact on profit from surging raw material and transportation costs. - FY2024-Q1RestatedAnnual report
「During the first quarter of the fiscal year, there were no material changes in the occurrence of major risks that management recognizes as potentially having a material impact on the financial position, operating results or cash flows of the consolidated companies, among the matters relating to the business conditions, financial position and other matters described in this quarterly report, or in the "Business and Other Risks" described in the annual securities report for the previous fiscal year.」
No major risks have materialized and no material changes have occurred regarding the risk of rising material and subcontracting costs. - FY2023-Q3WorsenedAnnual report
「The outlook for the economy remains uncertain due to the impact of rising prices, stagnating automobile production resulting from supply constraints for semiconductors and other components, and volatility in the financial and capital markets.」
Rising prices and stagnating production due to component supply constraints have continued, and deterioration in the external environment related to material and construction costs was disclosed. - FY2023-Q2WorsenedAnnual report
「In addition to stagnant automobile production caused by accelerating global inflation and supply chain constraints, risks weighing on the economy began to materialize through higher prices resulting from persistently high energy and resource prices and the yen's rapid depreciation.」
Regarding the external environment affecting material prices and construction costs, the filing cited global inflation, persistently high energy and resource prices, and price increases resulting from yen depreciation. - FY2023-Q1WorsenedAnnual report
「In addition to surging raw material prices following the prolonged situation in Ukraine and restrictions on economic activity resulting from China's lockdowns, automobile production has stagnated due to supply constraints for semiconductors and other components」
Surging raw material prices were explicitly identified as a business-environment factor, and deterioration in the external environment related to the risk of rising material prices was disclosed. - FY2022-Q3WorsenedAnnual report
「During the third quarter of the fiscal year under review, Japan's economy showed signs of gradual normalization and recovery as infections declined following the wider availability of COVID-19 vaccinations from the beginning of autumn. However, conditions remained uncertain due to renewed infections caused by the emergence of new variants from the end of the year, the impact of semiconductor shortages on production activity and soaring resource prices.」
Surging resource prices were identified as a new downside factor in the business environment. However, this filing does not disclose the direct impact on the Company's margins. - FY2022-Q2RestatedAnnual report
「During the second quarter of the fiscal year, there were no material changes in the occurrence of major risks that management recognizes as potentially having a material impact on the financial position, operating results or cash flows of the consolidated companies, among the matters relating to the business conditions, financial position and other matters described in this quarterly report, or in the "Business and Other Risks" described in the annual securities report for the previous fiscal year.」
No material changes were reported regarding the risk of rising material and subcontracting costs. - FY2021MitigatedAnnual report
「The Group is working to mitigate the risk by diversifying suppliers, placing orders for materials earlier and building cooperative relationships with contractors.」
Specific measures to address the risk of rising material and subcontracting costs were put in place, including supplier diversification, earlier ordering and the establishment of cooperative relationships with contractors. - FY2021-Q3RestatedAnnual report
「During the cumulative third-quarter consolidated period, there were no material changes in matters described in this quarterly report concerning the status of the business, financial information and other matters that could materially affect investors' decisions, or in the business and other risks described in the annual securities report for the previous fiscal year.」
No material changes were reported regarding the risk of rising material and subcontracting costs. - FY2021-Q1RestatedAnnual report
「During the first three months of the fiscal year, there were no major risks or significant changes in the matters described in this quarterly report concerning the business and accounting conditions that management recognizes could have a material impact on the financial condition, operating results, or cash flows of the consolidated companies, or in the "Business and Other Risks" described in the securities report for the previous fiscal year.」
No material changes were reported regarding the risk of rising material and subcontracting costs. - FY2020-Q3RestatedAnnual report
「During the cumulative third-quarter consolidated period, there were no material changes in matters described in this quarterly report concerning the status of the business, financial information and other matters that could materially affect investors' decisions, or in the business and other risks described in the annual securities report for the previous fiscal year.」
No material changes were reported regarding the risk of rising material and subcontracting costs. - FY2020-Q1RestatedAnnual report
「During the cumulative consolidated period of the first quarter, there were no material changes in unusual fluctuations, etc., in financial position, operating results or cash flows, or in the "Business and Other Risks" described in the annual securities report for the previous fiscal year.」
No material changes were reported regarding the risk of rising material and subcontracting costs. - FY2019MaterialisedAnnual report
「In addition to lower margins due to rising construction and raw material costs, additional construction costs were incurred on some overseas projects. Despite higher revenue, operating profit was ¥987 million (83.6% of the year-earlier period)」
The increase in material and construction costs previously identified as a risk materialized as lower margins and additional construction costs on overseas projects. - FY2019-Q3RestatedAnnual report
「During the cumulative third-quarter consolidated period, there were no material changes in matters described in this quarterly report concerning the status of the business, financial information and other matters that could materially affect investors' decisions, or in the business and other risks described in the annual securities report for the previous fiscal year.」
No material changes were reported regarding the risk of rising material and subcontracting costs. - FY2019-Q1RestatedAnnual report
「During the cumulative consolidated period of the first quarter, there were no material changes in unusual fluctuations, etc., in financial position, operating results or cash flows, or in the "Business and Other Risks" described in the annual securities report for the previous fiscal year.」
No material changes were reported regarding the risk of rising material and subcontracting costs. - FY2018RestatedAnnual report
「Given the nature of the business, some projects may require a long period from estimation and order receipt to delivery. Prices for materials and subcontracting services required for the manufacture and construction of equipment may surge due to supply-demand imbalances, potentially affecting the operating results of the Group.」
The risk of rising material and subcontracting costs associated with long-term projects remains ongoing. - FY2018-Q3RestatedAnnual report
「During the cumulative consolidated period of the third quarter, there were no material changes in unusual fluctuations, etc., in financial position, operating results or cash flows, or in the "Business and Other Risks" described in the annual securities report for the previous fiscal year.」
No material changes were reported regarding the risk of rising material and subcontracting costs. - FY2018-Q2RestatedAnnual report
「During the cumulative consolidated period of the second quarter, there were no material changes in unusual fluctuations, etc., in financial position, operating results or cash flows, or in the "Business and Other Risks" described in the annual securities report for the previous fiscal year.」
No material changes were reported regarding the risk of rising material and subcontracting costs. - FY2018-Q1RestatedAnnual report
「During the cumulative consolidated period of the first quarter, there were no material changes in unusual fluctuations, etc., in financial position, operating results or cash flows, or in the "Business and Other Risks" described in the annual securities report for the previous fiscal year.」
No material changes were reported regarding the risk of rising material and subcontracting costs. - FY2017RestatedAnnual report
「Given the nature of the business, some projects may require a long period from estimation and order receipt to delivery. Prices for materials and subcontracting services required for the manufacture and construction of equipment may surge due to supply-demand imbalances, potentially affecting the operating results of the Group.」
The risk of rising material and subcontracting costs associated with long-term projects remains ongoing. - FY2016First statedAnnual report
「Given the nature of the business, some projects may require a long period from estimation and order receipt to delivery. Prices for materials and subcontracting services required for the manufacture and construction of equipment may surge due to supply-demand imbalances, potentially affecting the operating results of the Group.」
The company cites fluctuations in project profitability resulting from longer periods from order receipt to delivery and surging material and subcontracting costs.