Raw Material Tightness and Cost Pressures Driven by Special Demand in the Chinese Market

「Our group is working to minimize risks by diversifying suppliers and establishing systems that enable stable procurement, securing appropriate housing materials, improving business operations such as vehicle dispatching to increase energy efficiency, and considering the introduction of energy-saving equipment in light of technological developments.」

「However, on the earnings front, product price revisions took hold, resulting in higher profit.」

「In our group's domestic corrugated board segment, case sales volume declined slightly, while sheet sales volume fell substantially below the previous year. However, on the earnings front, the product price increases pursued since last year took hold, resulting in higher profit.」

「In response to two substantial price increases for containerboard, its principal raw material, as well as higher energy prices and transportation costs, our group has worked to raise product prices since the start of the period. However, partly because some decisions were delayed, the effects are expected to be realized in the next fiscal year.」

「In response to rising prices for containerboard, its principal raw material, as well as energy and other costs, the company began raising product prices at the start of the period. As a result, sales increased to ¥83,321 million, up 10.7% year on year, but partly because the decisions on product price increases were delayed, operating profit fell to ¥3,845 million, down 14.8%.」

「As a result, sales increased to ¥55,663 million, up 12.0% year on year, but partly because of delays in deciding on domestic product price increases, operating profit in the corrugated board segment fell to ¥2,674 million, down 12.6%.」

「In response to higher prices for containerboard, its principal raw material, as well as fuel oil, gas and electricity, the company began raising product prices at the start of the period. However, partly because of delays in deciding on the price increases, sales were ¥27,157 million, up 7.9% year on year, while operating profit was ¥556 million, down 62.2%.」

「In the corrugated board segment, sales increased to ¥100,015 million, up 3.0% year on year, driven by higher sales volumes for beverages and processed foods. However, operating expenses increased due to higher raw material and fuel costs, among other factors, and operating profit was limited to ¥5,914 million, up 0.4%.」

「Corrugated board, the group's core business, may be temporarily affected in its financial results and other areas by cost-push pressure caused by increased demand and raw material shortages.」

「Corrugated board, the group's core business, may be temporarily affected in its financial results and other areas by cost-push pressure caused by raw material shortages resulting from special demand in the Chinese market.」

「Corrugating medium, the main raw material, was subject to price increases in August 2017 and November 2018, and the company is working to pass these increases through to appropriate product prices that enable sustainable production of corrugated board.」

「Corrugated board revenue rose 8.6% year on year to ¥24,815 million as the company worked to revise product prices. However, operating income declined 21.5% to ¥1,089 million because of higher raw material and other costs.」

「Meanwhile, as prices for corrugating medium, the main raw material, rose sharply for the second consecutive year, and prices for heavy fuel oil, natural gas and other items as well as logistics costs increased, the company persistently worked, with customers' understanding, to establish a product pricing structure that enables sustainable production.」

「A further price increase for corrugating medium, the main raw material, was announced for November of the current fiscal year following the increase in August of the previous fiscal year, and the company is working to pass the increase through to product prices that enable sustainable production. Corrugated board revenue rose 8.8% year on year to ¥70,382 million, partly as a result of negotiations to revise product prices that had been underway since the autumn two years ago. However, operating income declined 21.7% to ¥3,511 million because corrugating medium prices rose for the second consecutive year.」

「Corrugated board revenue rose 8.1% year on year to ¥46,208 million as a result of the product price increase negotiations that had been underway since last autumn. However, operating income declined 1.5% to ¥2,703 million because corrugating medium prices had risen since the previous year. In early October, a price increase for corrugating medium, the main raw material for corrugated board, effective from November was announced. The company will continue working to pass on these increases through product prices that enable sustainable production.」

「Corrugated board revenue rose 8.0% year on year to ¥22,854 million, although negotiations to raise product prices, which had been underway since last autumn, remained incomplete. Operating income declined 19.4% to ¥1,387 million, partly because of higher prices for corrugating medium, the main raw material.」

「Corrugated packaging revenue was ¥64,683 million, up 1.2% year on year, partly due to the newly consolidated トーモクベトナム社. Despite broad-based cost reductions, operating profit was limited to ¥4,487 million, down 8.2%, due to higher raw material prices.」

「Although prices remained soft, revenue rose 0.7% year on year to ¥42,751 million, partly because トーモクベトナム社 was newly consolidated. Despite broad cost-cutting measures, operating income was limited to ¥2,746 million, down 12.9%, because of higher raw material and other prices.」

「Corrugated board, the group's core business, may be temporarily affected in its financial results by cost-push pressure caused by raw material shortages resulting from special demand in the Chinese market.」

「Corrugated board, the group's core business, may be temporarily affected in its financial results by cost-push pressure caused by raw material shortages resulting from special demand in the Chinese market.」