Securing stable profits through product reviews and the use of hedging
First written in FY2016. 10 of 34 entries say "Advanced", first in FY2018-Q3. Latest entry: 2026-10-14.
No other company in this theme has enough history to compare yet.
- FY2026-H1RestatedAnnual report
「Against this backdrop, the group has focused on strengthening its earnings base and improving sales efficiency. In response to increased working capital requirements resulting from soaring raw material prices, the group has continuously reviewed low-profitability transactions and worked to build a strong sales structure, including by expanding the North American market through its overseas subsidiaries.」
The group is continuing its policy of strengthening its earnings base and improving sales efficiency, while reviewing low-profitability transactions and building a sales structure through expansion in the North American market. - FY2025WorsenedAnnual report
「The consolidated operating results of the group's current fiscal year were revenue of ¥8.2463 billion, up 0.5% from the previous consolidated fiscal year, gross profit of ¥233.3 million, down 25.2%, and a gross profit margin of 2.8%, down 1.0 percentage point. Although revenue exceeded the previous consolidated fiscal year, profit was substantially lower.」
Although revenue increased, gross profit declined 25.2% and the gross profit margin fell 1.0 percentage point, worsening the company's ability to secure stable earnings. - FY2025-H1WorsenedAnnual report
「In addition to the decline in the spread, temporary expenses of ¥156 million, including investigation costs and legal fees related to the acquisition of California Metal-X, were incurred, resulting in an operating loss of ¥164 million, compared with operating profit of ¥433 million in the same period of the previous year.」
The decline in the spread and temporary expenses resulted in a shift to an operating loss, worsening the earnings environment in the interim period for the goal of limiting the impact of market conditions and securing stable earnings. - FY2024AdvancedAnnual report
「The consolidated operating results of the group's current fiscal year were revenue of ¥8.207 billion, down 2.9% year on year, gross profit of ¥312 million, up 49.3%, and a gross profit margin of 3.8%, up 1.3 percentage points. Although revenue was below the previous fiscal year, profit was substantially higher.」
Although revenue declined, gross profit increased 49.3% and the gross profit margin rose 1.3 percentage points. Improvement in profitability related to securing stable earnings became evident for the full fiscal year. - FY2024-Q3AdvancedAnnual report
「Meanwhile, by reviewing unprofitable projects, the operating margin improved by 2.2% versus the same quarter, and ordinary profit increased by ¥1,182 million versus the same quarter.」
Specific measures to review unprofitable projects improved the operating margin by 2.2%, while ordinary profit also increased by ¥1,182 million year on year. This represents concrete progress toward the goal of limiting the impact of market conditions and securing stable earnings. - FY2024-Q2AdvancedAnnual report
「As a result of strengthening sales to existing overseas customers, the sales mix shifted toward higher-margin products, widening the spread. Operating profit improved significantly to ¥433 million, up 277.1% year on year.」
The spread widened as a result of stronger sales to existing overseas customers and a higher sales mix of high-margin products, while operating profit increased 277.1% year on year. This represents concrete progress toward the goal of limiting the impact of market conditions and securing stable earnings. - FY2024-Q1AdvancedAnnual report
「The spread widened as a result of promoting processing and sorting, including through a review of the grades of procured recycled raw materials, and operating profit totaled ¥231 million, up 157.6% year on year.」
The spread widened through specific measures, including a review of the grades of procured recycled raw materials and the promotion of processing and sorting, while operating profit also increased 157.6% year on year. - FY2023WorsenedAnnual report
「Meanwhile, in the nonferrous metals business, gross profit declined because margins were squeezed as raw-material prices rose due to surging commodity, resource and energy prices following Russia's invasion of Ukraine, despite copper prices remaining firm at high levels from the beginning of the period.」
Although copper prices remained at elevated levels, higher raw material prices put pressure on spreads, worsening the environment for securing stable earnings. - FY2023-Q2Hedging losses narrowed, but spreads also narrowedAnnual report
「The spread narrowed due to the effects of the stronger yen described above, as well as supply and demand constraints. Derivative trading loss 140,964 50,389」
While the spread narrowed due to the stronger yen and supply and demand constraints, derivative trading losses decreased from ¥140.964 million in the same quarter of the previous year to ¥50.389 million, with both improvements and deterioration seen in hedge-related gains and losses. - FY2023-Q1MitigatedAnnual report
「Derivative trading loss 68,404 48,869」
Derivative trading losses decreased from ¥68.404 million in the same quarter of the previous year to ¥48.869 million, and losses related to hedging improved from the previous period. - FY2022MitigatedAnnual report
「Non-operating income totaled ¥213 million, up 317.0% year on year, due to ¥11 million in dividend income, ¥133 million in foreign exchange gains, ¥57 million in derivative trading gains and other items.」
Whereas a derivative trading loss of ¥1,062 million was recorded in the previous fiscal year, the current fiscal year recorded derivative trading gains of ¥57 million, representing a significant improvement in gains and losses related to hedging. - FY2022-Q3MitigatedAnnual report
「Derivative trading loss 1,279,004 147,703」
Derivative trading losses decreased from ¥1,279.004 million in the cumulative same quarter of the previous year to ¥147.703 million, and losses related to hedging improved from the previous period. The derivative trading loss itself, however, continued. - FY2022-Q2MitigatedAnnual report
「Derivative trading loss 754,297 140,964」
Derivative trading losses decreased from ¥754.297 million in the same quarter of the previous year to ¥140.964 million. Although losses related to hedging continued, they improved from the previous period. - FY2022-Q1MitigatedAnnual report
「Derivative trading loss 204,072 68,404」
Derivative trading losses decreased from ¥204.072 million in the same quarter of the previous year to ¥68.404 million, and gains and losses related to hedging improved from the previous period. The derivative trading loss itself, however, continued. - FY2021WorsenedAnnual report
「Meanwhile, during the current fiscal year, the company entered into copper futures hedges on the London Metal Exchange to avoid price fluctuation risk and secure earnings, as the adverse effects of the COVID-19 pandemic remained a concern and market prices continued to trend upward, enabling low-cost procurement. Accordingly, a derivative trading loss of ¥1,062 million was recorded in non-operating expenses.」
Following the implementation of copper futures hedges, derivative trading losses totaled ¥1,062 million, a substantial increase from ¥11 million in the previous fiscal year. - FY2021-Q3WorsenedAnnual report
「Derivative trading loss － 1,279,004」
Derivative trading losses for the cumulative third quarter of the current consolidated fiscal year totaled ¥1,279.004 million, further increasing from ¥754.297 million in the previous quarter. Gains and losses related to hedging had a significantly negative impact on securing stable earnings. - FY2021-Q2WorsenedAnnual report
「Derivative trading loss － 754,297」
Compared with derivative trading gains of ¥42.710 million in the same quarter of the previous year, the current quarter recorded a derivative trading loss of ¥754.297 million, indicating a significant deterioration in gains and losses related to hedging. - FY2021-Q1Quarterly derivative trading loss recordedAnnual report
「Derivative trading loss － 204,072」
Derivative trading gains of ¥90 thousand in the same period of the previous year changed to a derivative trading loss of ¥204.072 million in the current quarter, and gains and losses related to hedging had a negative impact on securing stable earnings. - FY2020Changed to derivative trading lossAnnual report
「Meanwhile, non-operating expenses totaled ¥104 million, up 4.3% year on year, due to ¥65 million in interest expenses, down 25.3%, ¥17 million in foreign exchange losses, up 373.5%, ¥11 million in derivative trading losses, ¥4 million in equity-method investment losses and ¥5 million in other expenses.」
Whereas derivative trading gains were recorded in the previous fiscal year, the current fiscal year recorded a derivative trading loss of ¥11 million. Overall, however, the company returned to profitability due to tighter inventory management and favorable procurement conditions. - FY2020-Q3AdvancedAnnual report
「Derivative trading gains 1,303 79,176」
Derivative trading gains increased from ¥1.303 million in the same period of the previous year to ¥79.176 million. Gains and losses related to hedging improved significantly, contributing to the company remaining profitable for the cumulative third quarter. - FY2020-Q2AdvancedAnnual report
「Derivative trading gain 1,169 42,710」
Derivative trading gains increased from ¥1.169 million in the same period of the previous year to ¥42.710 million. Hedge-related gains and losses improved, and the cumulative second quarter recorded operating profit, ordinary profit and net profit. - FY2020-Q1Hedging-related gains narrowed, but earnings turned positiveAnnual report
「Derivative trading gain 90」
Derivative trading gains narrowed from ¥768 thousand in the same period of the previous year to ¥90 thousand, while operating income, ordinary income and quarterly net income attributable to owners of the parent all turned from losses into profits. - FY2019-Q3Hedging-related gains increased, but an overall lossAnnual report
「Derivative trading gain 65 1,303」
Derivative trading gains increased from ¥65 thousand in the same period of the previous year to ¥1,303 thousand, but the Company recorded an operating loss and an ordinary loss, so the improvement in hedging-related gains and losses was insufficient to secure stable profits. - FY2019-Q2Hedging-related gains increased, but an overall lossAnnual report
「Derivative trading gain 1,169」
Although a derivative trading gain of ¥1,169 thousand was recorded, the Company posted an operating loss and an ordinary loss, so the improvement in hedging-related gains and losses was insufficient to secure stable profits. - FY2019-Q1Hedging-related gains, but an overall lossAnnual report
「Derivative trading gain 248 768」
Derivative trading gains increased from ¥248 thousand in the same period of the previous year to ¥768 thousand, but the Company recorded an operating loss and an ordinary loss this quarter, so the improvement in hedging-related gains and losses was insufficient to produce stable overall profits. - FY2018-Q3AdvancedAnnual report
「Derivative trading gain 65」
A derivative trading loss of ¥254,895 thousand was recorded in the same quarter of the previous year, whereas the Company recorded a derivative trading gain of ¥65 thousand this quarter, turning derivative trading gains and losses from a loss into a gain. - FY2018-Q2Sharp decline in derivative trading lossAnnual report
「Derivative trading loss 195」
The derivative trading loss for the cumulative second quarter of the fiscal year was ¥195 thousand, down sharply from ¥259,143 thousand in the same quarter of the previous year. - FY2017-Q3RestatedAnnual report
「Derivative trading loss - 254,895」
A derivative trading loss of ¥254,895 thousand was also recorded for the cumulative third quarter of the fiscal year, with the impact of hedging-related gains and losses continuing to be reflected in the results. - FY2017-Q2Derivative trading loss recordedAnnual report
「Derivative trading loss 259,143」
A derivative trading loss of ¥259,143 thousand was recorded as a non-operating expense for the cumulative second quarter of the fiscal year, with the impact of hedging-related gains and losses reflected in the results. - FY2017-Q1Timing mismatch between hedge losses and realized gains on physical transactionsAnnual report
「However, because the market surged from early November, a timing mismatch arose between the realization of hedge losses and gains on physical transactions,」
It explains that a timing mismatch arose between the realization of hedge losses and gains on physical transactions during the market surge, indicating a specific impact on profit stabilization through hedging. - FY2016First statedAnnual report
「We will also seek to mitigate the impact of market conditions and secure stable profits by reviewing the products we sell and making greater use of hedging.」
It sets out a target of mitigating the impact of market conditions and securing stable profits through product portfolio revisions and the use of hedging.