Risk of higher manufacturing costs due to raw material prices, foreign exchange and labor costs in Asia

「加えて、為替相場の変動による製品コストへの影響や、人件費・物流費等の上昇圧力もあり、引き続き厳しい経営環境にあります。」

「Gross profit declined due to lower revenue, persistently high raw material prices, and higher product costs resulting from the weaker yen. Gross profit was ¥2,716 million, down ¥422 million year on year, and the gross profit margin was 27.4%, down 1.7 percentage points from the same period of the previous year.」

「At our domestic plants, production costs increased due to higher prices for raw and auxiliary materials and rising labor costs. As further cost increases are expected from substantial minimum wage revisions, we will maintain plant utilization through initiatives with new customers, primarily for custom orders, while pursuing labor-cost negotiations with existing customers and productivity improvements to enhance profitability.」

「Gross profit was affected by higher product costs due to rising raw material prices, but increased selling prices resulting from delivery-price negotiations and lower cost of sales due to a review of the method used for foreign exchange forward contracts resulted in gross profit of ¥3,138 million, a ¥71 million year-on-year decrease, and a gross margin of 29.1%, an improvement of 1.1 percentage points from the year-earlier period.」

「However, the gross margin declined by 0.7 percentage points year on year due in part to the recent rise in costs.」

「Although gross profit was affected by the surge in product costs caused by the weaker yen against the US dollar, we worked to revise transaction terms and strengthen sales of original products with high gross margins. Cost reductions through production adjustments brought gross profit to ¥3,209 million, an increase of ¥405 million from the year-earlier period, and lifted the gross margin to 28.0%, an improvement of 3.4 percentage points from the year-earlier period.」

「Gross profit also exceeded the planned figure as a result of the success of delivery-price negotiations continued from the previous fiscal year and a review of the method used for foreign exchange forward contracts.」

「Although product costs were driven up by higher raw material prices and a weaker yen against the US dollar,」

「As a result, although net sales remained strong at 120% of the year-earlier period, gross profit remained at 91% because higher raw material prices and the rapid weakening of the yen against the US dollar raised procurement costs. The Company will continue working to improve gross profit and the gross margin by reducing product costs, including through a review of raw and auxiliary materials, reviewing its foreign exchange forward contracts, negotiating higher delivery prices, and reviewing retail prices.」

「However, due to the impact of soaring raw material prices and the rapid weakening of the yen against the US dollar, product costs have risen more than expected. As a result, although net sales remained strong at 123% of the year-earlier period, gross profit was 91% of the year-earlier period, making it difficult to secure both the amount and margin of gross profit.」

「However, because product costs, including raw materials, have risen sharply due to soaring global energy costs and the rapid weakening of the yen against the US dollar, securing the originally targeted gross margin has become difficult. The Company will continue working to reduce product costs and review retail prices.」

「Due to higher raw material prices and sharply higher labor costs at production sites, as well as rising domestic labor and logistics costs resulting from tight labor supply and demand, manufacturing costs and selling and distribution costs have been trending upward. In this difficult business environment, labor costs at the Shanghai plant (上海山喜) rose particularly sharply, leading the Company to reorganize its production lines in China and close the production lines at 上海山喜.」

「Due to higher raw material prices and sharply higher labor costs at overseas production sites, as well as rising domestic labor and logistics costs resulting from tight labor supply and demand, manufacturing costs and selling and distribution costs have been trending upward, and the difficult business environment is expected to continue. In particular, because labor costs at 上海山喜 have risen sharply, the Company decided to transfer 上海山喜’s production lines to 塩城山喜 and reorganize its production structure to respond to future order conditions.」

「Due to higher raw material prices and sharply higher labor costs at overseas production sites, as well as rising domestic labor and logistics costs resulting from tight labor supply and demand, manufacturing costs and selling and distribution costs have been trending upward, and the difficult business environment is expected to continue. In particular, because labor costs at 上海山喜 have risen sharply,」

「Due to higher raw material prices and sharply higher labor costs at production sites, as well as rising domestic labor and logistics costs resulting from tight labor supply and demand, manufacturing costs and selling and distribution costs have been trending upward, and the difficult business environment is expected to continue.」

「① Manufacturing costs for products have continued to trend upward due to higher raw material prices, foreign exchange fluctuations, and sharply higher labor costs at production sites in Asia. As countermeasures, the Company will strengthen the production capacity of low-cost production sites and further reduce costs by coordinating its subsidiary factories and overseas partner factories with the production division of 日本山喜.」

「① Manufacturing costs for products have continued to trend upward due to higher raw material prices, a weaker yen against the US dollar, and sharply higher labor costs at production sites in Asia.」

「Manufacturing costs for products have continued to trend upward due to higher raw material prices, a weaker yen against the US dollar, and sharply higher labor costs at production sites in Asia.」

「① Manufacturing costs for products have continued to trend upward due to higher raw material prices, a weaker yen against the US dollar, and higher labor costs at production sites in Asia.」

「① Manufacturing costs for products have continued to trend upward due to higher raw material prices, a weaker yen against the US dollar, and higher labor costs at production sites in Asia.」

「① Manufacturing costs for products have continued to trend upward due to higher raw material prices, a weaker yen against the US dollar, and higher labor costs at production sites in Asia.」

「① Manufacturing costs for products have continued to trend upward due to higher raw material prices, a weaker yen against the US dollar, and higher labor costs at production sites in Asia.」

「Manufacturing costs for products have been trending upward due to the sharp rise in raw material prices in recent years, a weaker yen against the US dollar, and higher labor costs at production sites in Asia.」

「Manufacturing costs for products have been trending upward due to the sharp rise in raw material prices in recent years, a weaker yen against the US dollar, and higher labor costs at production sites in Asia.」

「Manufacturing costs for products have been trending upward due to the sharp rise in raw material prices in recent years, a weaker yen against the US dollar, and higher labor costs at production sites in Asia.」

「Manufacturing costs for products have been trending upward due to the sharp rise in raw material prices in recent years, a weaker yen against the US dollar, and higher labor costs at production sites in Asia.」

「Manufacturing costs for products have been trending upward due to the sharp rise in raw material prices in recent years, a weaker yen against the US dollar, and higher labor costs at production sites in Asia.」

「Manufacturing costs for products have been trending upward due to the sharp rise in raw material prices in recent years, a weaker yen against the US dollar, and higher labor costs at production sites in Asia.」

「Manufacturing costs for products have been trending upward due to the sharp rise in raw material prices in recent years, a weaker yen against the US dollar, and higher labor costs at production sites in Asia.」

「Manufacturing costs for products have been trending upward due to the sharp rise in raw material prices in recent years, a weaker yen against the US dollar, and higher labor costs at production sites in Asia.」