Cost Increases from Soaring Raw Material Prices and Power Shortages

「In Japan, net sales increased owing to higher production of automotive components for major customers and increased sales of dies and other equipment associated with the promotion of new models. In addition to the effect of higher sales, profit increased as a result of ongoing cost-reduction activities, including reductions in manufacturing expenses.」

「Sales increased 3.8% year on year to ¥54,347 million due to the pass-through of higher raw material costs and foreign exchange effects.」

「Sales increased due to higher product selling prices resulting from higher raw material prices, among other factors.」

「At J-MAX, sales increased due to the recovery in production at major customers, higher sales of molds and equipment, and higher product selling prices resulting from soaring raw material prices, among other factors.」

「Although initiatives to reduce expenses, including lower transportation costs through improved logistics efficiency, were promoted, profits declined due to the timing gap in reflecting higher raw material prices in selling prices and higher die procurement costs, among other factors. / In addition to the increased fixed-cost burden resulting from lower sales, profits declined due to the impact of higher raw material prices and other factors.」

「At J-MAX, sales increased in the parts business due to the recovery of production at major customers and higher product selling prices resulting from higher raw material prices, among other factors. Although cost-reduction activities such as improvements in production efficiency were promoted, profits declined due to timing gaps in reflecting higher raw material prices in selling prices, increased labor cost burdens resulting from production fluctuations at major customers, and higher die procurement costs, among other factors.」

「At J-MAX, although production cuts at major customers had an impact, sales increased due to higher product selling prices resulting from higher raw material prices and increased sales of dies and equipment, among other factors. Although cost-reduction activities such as productivity improvements were promoted, profits declined due to delays in reflecting higher raw material prices in selling prices and changes in the vehicle mix produced by major customers, among other factors. / In Wuhan, sales increased due to higher production at major customers, higher product selling prices resulting from higher raw material prices, and the impact of foreign exchange movements resulting from the weaker yen, among other factors. Although cost-reduction activities such as improvements in material yields and logistics efficiency were promoted, profits declined because of the significant impact of higher material costs due to higher raw material prices and increased labor cost burdens resulting from production fluctuations at major customers, among other factors.」

「In the automotive industry to which our group belongs, global trends toward achieving a decarbonized society are accelerating. In addition to further technological advances in automotive parts associated with electrification, alliances among automotive parts suppliers and entry into the automotive industry by companies from other sectors are expected to intensify global competition further. The outlook also remains uncertain, with concerns including a slowdown in production activity due to the semiconductor shortage and higher costs resulting from rising resource prices.」

「Operating income was ¥1,968 million, down 34.4% year on year; ordinary income was ¥1,908 million, down 31.6%; and net income attributable to owners of the parent was ¥1,179 million, down 32.8%, due to the impact of higher raw material prices and other factors during the quarter. / Profits declined due to higher costs associated with responding to higher raw material prices and power shortages, as well as increased labor cost burdens resulting from production fluctuations at major customers.」