Material Price Fluctuations and Difficulty Passing Them Through to Selling Prices
First written in FY2016. 11 of 20 entries say "Materialised", first in FY2018-Q3. Latest entry: FY2025.
Ochi Holdings moved to the "Worse" side of this theme in 2023, 2 years after the typical company in this theme (2021).
The whole theme swung hardest in 2021: 22 of 32 companies on the "Worse" side.
12 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「If demand for housing-related materials declines due to an economic downturn, changes in tax policy or housing-related policies, shortages and soaring prices of timber and other materials, or other factors, this could have a particularly material impact on our group's operating performance and other financial conditions.」
Shortages and soaring prices of timber and other materials, and their impact on demand for housing-related materials, continue to be explicitly identified as part of the risks facing the housing market. - FY2025-H1WorsenedAnnual report
「The interim consolidated accounting period produced a difficult result due to the decline in new housing starts, sluggish demand for plywood, one of our core products, and lower selling prices, prolonged summer rains mainly in western Japan, delays in construction and logistics caused by typhoons, and higher selling, general and administrative expenses resulting from soaring prices, among other factors.」
In addition to the previously identified risk of material price fluctuations, sluggish demand for plywood, a core product, and lower selling prices actually occurred and were explicitly identified as pressures on performance. - FY2024MaterialisedAnnual report
「In addition to the impact of declining housing starts for owner-occupied and subdivision detached homes, lower timber prices resulted in sales of ¥14,729 million, down 21.3% from the previous period, and operating profit of ¥850 million, down 46.1% from the previous period, in this business.」
Lower timber prices actually emerged as a factor behind the declines in sales and operating profit in the processing business, and the impact of material price fluctuations on performance was confirmed for the full year. - FY2024-Q3MaterialisedAnnual report
「In addition to the impact of declining housing starts for owner-occupied and subdivision detached homes, lower timber prices resulted in sales of ¥11,521 million, down 21.9% year on year, and operating profit of ¥741 million, down 43.9% year on year, in this business.」
Lower timber prices actually emerged as a factor behind the declines in sales and operating profit in the processing business, and the impact of material price fluctuations on performance continues. - FY2024-Q2MaterialisedAnnual report
「In addition to the impact of declining housing starts for owner-occupied and subdivision detached homes, lower timber prices resulted in sales of ¥7,572 million, down 22.4% year on year, and operating profit of ¥482 million, down 42.9% year on year, in this business.」
Lower timber prices actually emerged as a factor behind the declines in sales and operating profit in the processing business, and the impact of material price fluctuations on performance continues. - FY2024-Q1MaterialisedAnnual report
「In addition to the impact of declining housing starts for owner-occupied and subdivision detached homes, lower timber prices resulted in sales of ¥3,612 million, down 22.5% year on year, and operating profit of ¥218 million, down 44.4% year on year, in this business.」
Lower timber prices actually emerged as a factor behind the declines in sales and operating profit in the processing business, and the impact of material price fluctuations on performance materialized again. - FY2023-Q2MitigatedAnnual report
「Although some timber prices have begun to decline, we have focused on selling at appropriate prices while prices remain at elevated levels.」
Some timber prices have begun to decline, partially easing the pressure from soaring prices. However, prices remain at elevated levels, and the risk itself continues. - FY2023-Q1MaterialisedAnnual report
「In the housing-related industry, global timber shortages and elevated prices continue, as do delays in the supply of housing equipment and other products due to semiconductor shortages,」
Timber shortages and elevated prices continue, with fluctuations in material prices and supply constraints emerging as actual business conditions. - FY2022-Q3RestatedAnnual report
「In the housing-related industry, global timber shortages and the resulting price surge continue, but」
Global timber shortages and soaring prices continue to occur. - FY2022-Q2RestatedAnnual report
「Global timber shortages and the resulting price surge continue, but」
Global timber shortages and soaring prices continue to occur. - FY2022-Q1MaterialisedAnnual report
「Amid continued global shortages of timber and the resulting price surge, we focused on securing materials and selling them at appropriate prices, but circumstances arose in which we had no choice but to decline some orders.」
The risk of fluctuations in material prices and difficulty passing them through materialized in the form of global timber shortages and price surges, resulting in an operational impact that forced us to decline some orders. - FY2020-Q3MitigatedAnnual report
「Operating profit was ¥733 million, up 52.0% year on year, due in part to lower prices for certain materials.」
Lower prices for certain materials continued to be cited as a factor behind the increase in operating profit in the processing business, and the earnings pressure from higher material prices was eased during the quarter as well. - FY2020-Q1MitigatedAnnual report
「Operating profit was ¥217 million, up 68.3% year on year, due in part to lower prices for certain materials.」
Lower prices for certain materials were cited as a factor behind the increase in operating profit in the processing business, and the earnings pressure from higher material prices that had previously materialized was partially eased in the quarter. - FY2019-Q3MaterialisedAnnual report
「However, operating profit was ¥482 million, down 9.6% year on year, due to higher labor costs in manufacturing and administrative departments and increases in the prices of certain materials, among other factors.」
Higher prices for certain materials continued to emerge, together with higher labor costs, as a factor behind the decline in operating profit in the processing business. - FY2019-Q2MaterialisedAnnual report
「However, operating profit was ¥257 million, down 19.2% year on year, due to higher labor costs in manufacturing and administrative departments and increases in the prices of certain materials, among other factors.」
Higher prices for certain materials continued to emerge, together with higher labor costs and other factors, as a cause of the decline in operating profit in the processing business. - FY2019-Q1MaterialisedAnnual report
「However, operating profit was ¥129 million, down 25.2% year on year, due to higher labor costs in manufacturing and administrative departments and increases in the prices of certain materials, among other factors.」
Higher prices for certain materials continued to actually emerge as a factor behind the decline in operating profit in the processing business. - FY2018MaterialisedAnnual report
「Operating profit was ¥632 million, down 12.5% from the previous period, due to higher logistics and labor costs and the inability to pass higher prices for certain materials through to selling prices, among other factors.」
The inability to pass higher prices for certain materials through to selling prices led to a decline in operating profit in the processing business. Earnings pressure from material price fluctuations and the difficulty of passing them through clearly materialized. - FY2018-Q3MaterialisedAnnual report
「As a result, sales in this business were ¥10,067 million, up 2.0% year on year, but operating profit was ¥534 million, down 6.9% year on year, due in part to higher logistics and labor costs and increases in the prices of certain materials.」
Higher prices for certain materials were actually cited as a factor behind the decline in operating profit, indicating that earnings pressure from material price fluctuations materialized. Difficulty passing the increase through to selling prices itself was not explicitly stated. - FY2017RestatedAnnual report
「If passing costs through to selling prices and taking other measures proves difficult, this could materially affect our group's financial position and operating performance.」
The risk of an earnings impact if fluctuations in material prices cannot be passed through to selling prices continues. - FY2016First statedAnnual report
「If passing costs through to selling prices and taking other measures proves difficult, this could materially affect our group's financial position and operating performance.」
The impact on earnings if higher demand or fluctuations in material prices cannot be passed through to selling prices is stated.