Delayed pass-through of raw material price changes
First written in FY2016. 14 of 25 entries say "Materialised", first in FY2019-Q1. Latest entry: FY2026.
Nippon Carbide Industries Company moved to the "Worse" side of this theme in 2025, 4 years after the typical company in this theme (2021).
The whole theme swung hardest in 2021: 26 of 42 companies on the "Worse" side.
14 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「Although higher raw material prices resulting from soaring aluminum ingot prices had a negative impact on earnings, sales of high-strength, high-performance handrails increased. Segment sales rose ¥105 million (1.5%) year on year to ¥7,109 million, and segment profit increased ¥15 million (20.0%) to ¥90 million.」
The impact of higher raw material prices actually appeared in earnings in the building materials business, but the segment reported higher sales and profit due to increased sales volume. In electronic and functional products, product price revisions had a positive impact on earnings, while soaring materials prices were a factor behind lower profitability in engineering, with the effects differing by business. - FY2026-H1Differing impacts of raw material prices by businessAnnual report
「Functional resins benefited from lower raw material prices and increased shipments of medical-use materials as a result of expanded sales in China. However, shipments of pressure-sensitive and other adhesives for optical applications decreased due to intensifying competition in the Chinese market, resulting in lower sales and profit year on year.」
While lower raw material prices had a positive impact on earnings in functional resins, higher raw material prices resulting from soaring aluminum ingot prices had a negative impact in the building materials business, with the effects differing by business. - FY2025MaterialisedAnnual report
「Profitability in the building materials business deteriorated due to higher raw material prices resulting from soaring aluminum ingot prices.」
Higher raw material prices resulting from soaring aluminum ingot prices actually led to deteriorating profitability in the building materials business, and segment profit fell 72.5% year on year. - FY2025-H1MaterialisedAnnual report
「Although shipments of products for outdoor signage in Japan increased, delayed pass-through of higher raw material costs into product prices had a negative impact on earnings in the film business, resulting in higher sales but lower profit year on year.」
The delayed pass-through of higher raw material costs into product prices had an actual negative impact on earnings in the film business. - FY2024MitigatedAnnual report
「Our group is working to address fluctuations in raw material prices by purchasing from new suppliers, both in Japan and overseas, and sharing purchasing information within the group.」
As measures to address raw material price fluctuations, the company stated that it purchases from new suppliers and shares purchasing information within the group. - FY2024-Q3MitigatedAnnual report
「Although the recovery in market conditions related to liquid-crystal panels remained weak, functional resins benefited from progress in reducing distribution inventories and increased shipments of pressure-sensitive and other adhesives for optical applications. Price revisions in response to raw material price fluctuations also had a positive impact on earnings, resulting in higher sales and profit year on year.」
Price revisions in response to raw material price fluctuations had a positive impact on earnings in functional resins, and measures to address raw material price volatility are cited as a factor behind the increases in sales and profit. - FY2024-Q2MitigatedAnnual report
「Sales of aluminum building materials declined due to a decrease in housing starts, and segment revenue fell by ¥384 million, or 9.9%, year on year to ¥3,499 million. Segment profit, however, increased by ¥106 million, or 260.3%, to ¥147 million, owing to price revisions reflecting fluctuations in raw material prices and measures to control fixed costs.」
Price revisions in response to raw material price fluctuations, together with fixed-cost controls, are cited as factors improving profit, and profit in the building materials business increased despite lower sales. - FY2024-Q1MitigatedAnnual report
「Functional resins reported a year-on-year decline in sales as shipments of pressure-sensitive and other adhesives for optical applications decreased due to the delayed recovery in market conditions for liquid-crystal panels and electronic components. However, profit increased year on year as the company proceeded with price revisions in response to higher raw material and fuel prices.」
As a result of implementing price revisions in response to higher raw material and fuel prices, functional resins generated higher profit despite lower sales. This is cited as an example of measures to address raw material price volatility contributing to the preservation of profit in an individual business. - FY2023MaterialisedAnnual report
「Segment profit declined ¥20 million (7.4%) year on year to ¥258 million, partly due to the impact of soaring aluminum ingot prices.」
The impact of soaring aluminum ingot prices appeared in actual results as a factor behind the decline in profit in the building materials business. - FY2023-Q3MaterialisedAnnual report
「Although sales of aluminum building materials for detached houses were sluggish due to the decline in housing starts, sales of aluminum building materials for buildings remained firm. Segment sales increased ¥165 million (2.9%) year on year to ¥5,786 million. Segment profit declined ¥36 million (14.9%) year on year to ¥207 million, partly due to the impact of soaring aluminum ingot prices.」
The impact of soaring aluminum ingot prices appeared in actual results as a factor behind the decline in profit in the building materials business, with segment profit falling 14.9% year on year. - FY2023-Q2MaterialisedAnnual report
「Operating profit was ¥1,069 million, a year-on-year decline of ¥680 million (38.9%), due mainly to soaring raw material prices.」
The impact of soaring raw material prices appeared in actual results as a factor behind the decline in consolidated operating profit, which fell 38.9% year on year. - FY2023-Q1MaterialisedAnnual report
「Operating profit declined ¥143 million, or 16.2%, to ¥742 million due mainly to the impact of surging raw material prices and other factors.」
Surging raw material prices were reflected in actual consolidated results as a factor behind the decline in operating profit, which fell 16.2% year on year. - FY2022MaterialisedAnnual report
「Functional Resins posted higher revenue but lower profit year on year, although shipments of pressure-sensitive and other adhesives for optical applications remained steady, due to higher raw material prices and other factors. ……Retroreflective Sheets posted higher revenue but lower profit year on year, although shipments for license plates in Europe remained strong, due to higher raw material prices and other factors.」
Higher raw material prices were reflected in full-year results as a factor behind lower profit in both Functional Resins and Retroreflective Sheets. - FY2022-Q3MaterialisedAnnual report
「Functional Resins posted higher revenue but lower profit year on year, although shipments of pressure-sensitive and other adhesives for optical applications remained steady, due to higher raw material prices and other factors.」
Higher raw material prices continue to be reflected in actual results as a factor behind the decline in Functional Resins' profit. - FY2022-Q2MaterialisedAnnual report
「Functional Resins posted higher revenue but lower profit year on year, although pressure-sensitive and other adhesives for optical applications performed steadily, due to higher raw material prices and other factors.」
Higher raw material prices have emerged in actual results as a factor behind the decline in Functional Resins' profit. - FY2022-Q1MaterialisedAnnual report
「Functional Resins posted higher revenue but lower profit year on year, as strong performance in pressure-sensitive and other adhesives for optical applications was offset by higher raw material prices and other factors.」
Higher raw material prices have emerged in actual results as a factor behind the decline in Functional Resins' profit. - FY2021MitigatedAnnual report
「The Group is working to respond to fluctuations in raw material prices by investigating new sources of supply, including in Japan and overseas, and researching new materials and technologies.」
To address raw material price fluctuation risk, the company continues to investigate new sources of supply and research new materials and technologies. - FY2020MitigatedAnnual report
「The Group is working to respond to fluctuations in raw material prices by investigating new sources of supply, including in Japan and overseas, and researching new materials and technologies.」
The company explicitly identifies investigating new sources of supply and researching new materials and technologies as measures to address raw material price fluctuation risk. - FY2019MaterialisedAnnual report
「The business was affected by higher raw material and transportation costs resulting from surging crude oil prices and other factors, as well as a decline in housing starts.」
The report specifically identifies higher raw material and transportation costs resulting from surging crude oil prices and other factors as drivers of the business environment and the decline in segment profit. - FY2019-Q3MaterialisedAnnual report
「Segment profit declined ¥88 million, or 5.6%, to ¥1,473 million due mainly to the impact of higher raw material prices. Accordingly, the segment posted revenue of ¥12,316 million, an increase of ¥629 million, or 5.4%, from the same quarter of the previous year, but segment profit declined ¥149 million, or 13.8%, to ¥932 million due to higher costs, including raw material and transportation costs.」
The report specifically identifies higher raw material prices for Electronics and Functional Products and higher costs, including raw material and transportation costs, for Film and Sheet Products as factors behind lower segment profit. The figures also show year-on-year profit declines in both segments. - FY2019-Q2RestatedAnnual report
「Meanwhile, in Japan, although there were concerns about the prolonged trade dispute between the United States and China and rising crude oil prices, corporate earnings and the export environment remained firm, and the economy continued to recover moderately.」
Concerns about rising crude oil prices are cited in the description of the economic environment, but the report does not state that higher raw material prices affected performance in the quarter. - FY2019-Q1MaterialisedAnnual report
「Accordingly, the segment posted revenue of ¥2,385 million, a decrease of ¥209 million, or 8.1%, from the same quarter of the previous year, while segment profit declined ¥124 million, or 62.9%, to ¥73 million due mainly to the impact of higher raw material prices.」
The report specifically identifies higher raw material prices in the building materials business as a factor behind the decline in profit, with segment profit down 62.9% year on year. - FY2018RestatedAnnual report
「If raw material price fluctuations cannot be passed through to product prices in a timely manner and the resulting impact exceeds the amount of cost reductions, this may affect the Group's business performance.」
The company continues to disclose fluctuations in raw material prices and delays in passing them through to product prices as risks to business performance. Although higher prices increased costs, the report does not state that a delay in passing them through occurred. - FY2017RestatedAnnual report
「If raw material price fluctuations cannot be passed through to product prices in a timely manner and the resulting impact exceeds the amount of cost reductions, this may affect the Group's business performance.」
The company continues to disclose fluctuations in raw material prices and delays in passing them through to product prices as risks to business performance. - FY2016First statedAnnual report
「If raw material price fluctuations cannot be passed through to product prices in a timely manner and the resulting impact exceeds the amount of cost reductions, this may affect the Group's business performance.」
The company identifies fluctuations in naphtha and metal prices, as well as delays in passing these through to product prices, as major risks.