Difficulties Procuring Overseas Raw Materials and Rising Crude Oil and Energy Prices

「Demand for automotive-related materials for the domestic market remained sluggish, but demand for overseas replacement parts and demand for motorcycles in India and some Southeast Asian markets remained firm. However, sales fell below the previous year’s level because of the time required to address alternative products following production stoppages at raw material manufacturers, as well as inventory adjustments by customers.」

「Profit was also affected by higher depreciation, higher raw material prices and labor costs, and start-up costs associated with the launch of a new plant.」

「In terms of profit, although we were affected by higher raw material prices and lower inventories, we pursued sales price revisions in response to higher raw material prices.」

「As a result, during the interim consolidated accounting period, our group implemented price revisions in response to rising costs, but sales were affected by changes in the Chinese market and amounted to ¥8,092 million, down ¥160 million, or 1.9%, from the same interim period of the previous year. Profit was also affected by lower sales and higher fixed costs, resulting in an operating loss of ¥9 million, compared with operating profit of ¥95 million in the same interim period of the previous year, and an ordinary loss of ¥52 million, compared with ordinary profit of ¥72 million in the same interim period of the previous year.」

「In terms of profit, we pursued cost-reduction initiatives and price revisions in response to higher raw material prices, but were affected by lower sales and higher labor and other production expenses.」

「During the first 9 months of the fiscal year, earnings were significantly affected mainly by higher raw material prices and soaring production costs, including labor costs and indirect materials.」

「During the first 6 months of the fiscal year, earnings were significantly affected mainly by higher raw material prices.」

「Sales increased from the previous year during the first 3 months of the fiscal year, but earnings were significantly affected by higher raw material and fuel prices.」

「During the fiscal year, in addition to a sharp rise in energy prices, we continued to be affected by higher raw material prices and implemented price increases for some products. Transport costs also declined as logistics disruptions eased.」

「During the first 3 quarters of the fiscal year, although affected by higher raw material and fuel prices, we implemented price increases for some products.」

「Revenue for the second quarter of the current consolidated cumulative period increased from the previous year. On the earnings side, the company raised prices to pass on some of the increase in raw-material prices, but earnings continued to be significantly affected by higher raw-material and fuel prices, among other factors.」

「Revenue for the first quarter of the current consolidated cumulative period increased from the previous year, but earnings were significantly affected by higher raw-material and fuel prices and transportation costs.」

「Revenue for the current consolidated fiscal year recovered substantially from the previous consolidated fiscal year, but was affected by higher transportation costs due to logistics disruptions and higher raw-material and fuel prices.」

「Orders in the third quarter recovered from the previous year, but earnings continued to be affected by higher transportation costs due to logistics disruptions and higher raw-material and fuel prices.」

「However, on the earnings side, the company was affected by logistics disruptions and higher raw-material and fuel prices. In particular, for automotive-related materials, transportation costs increased substantially to meet delivery deadlines amid production disruptions caused by COVID-19 infections at the Thailand plant.」

「The outlook remains uncertain due to the spread of new COVID-19 variants, logistics disruptions caused by container shortages, and semiconductor supply shortages, among other factors.」

「Because the Group procures key raw materials, including wood pulp and linter pulp, from overseas, including North America, South America and Europe, surcharges have recently been imposed on ocean freight due to a shortage of containers.」

「In terms of profit, operating profit was ¥129 million, down ¥149 million, or 53.5%, from the same quarter of the previous year, and ordinary profit was ¥93 million, down ¥226 million, or 70.8%, due to lower sales and higher raw-material prices and depreciation expenses, among other factors.」

「As a result, revenue for the second quarter of the current consolidated cumulative period was ¥7,746 million, down ¥500 million, or 6.1%, from the same quarter of the previous year. In terms of profit, operating profit was ¥52 million, down ¥167 million, or 76.1%, from the same quarter of the previous year, due to lower sales and higher raw-material prices and depreciation expenses, among other factors.」

「In terms of profit, operating profit was ¥3 million, down ¥86 million, or 96.6%, from the same quarter of the previous year, and ordinary loss was ¥6 million, compared with ordinary profit of ¥86 million in the same quarter of the previous year, due to lower sales and higher raw-material prices and depreciation expenses, among other factors.」

「Operating profit was ¥275 million, down ¥140 million, or 33.7%, from the same period of the previous year, due to higher raw-material and fuel prices and increased personnel expenses and research and development expenses, among other factors.」

「Operating profit was ¥278 million, down ¥92 million, or 24.9%, from the same quarter of the previous year, due to higher raw-material and fuel prices and increased research and development expenses, among other factors.」

「Operating profit was ¥220 million, down ¥37 million, or 14.5%, from the same quarter of the previous year, due to higher raw-material and fuel prices and increased research and development expenses, among other factors.」

「Against this backdrop, our Group focused on expanding sales in overseas markets, primarily in Asia, and on bringing new products to market and developing high-performance products for existing businesses. However, sales of automotive-related materials declined, while higher raw material and fuel prices and increased research and development expenses also affected results.」

「In these circumstances, the Group promoted sales expansion in overseas markets, mainly in Asia, and worked to develop new products. However, profit declined due to a substantial decrease in sales of industrial materials, as well as higher raw-material and fuel prices and increased personnel expenses.」

「In addition to the impact of lower sales, the company was affected by higher raw-material and fuel prices and increased personnel expenses.」

「The Group procures key raw materials, including wood pulp and linter pulp, from overseas, primarily North and South America. If natural disasters, poor harvests, port strikes or other disruptions in the countries of origin, or other events, make these raw materials difficult to procure temporarily or for an extended period, or if raw-material prices rise due to a sharp increase in market demand, this could affect the performance of the Group.」