Risk of sharp market fluctuations

「A slowdown in the global economy resulting from the emergence of geopolitical risks, including the tariff policies of the United States and other countries and the situation in the Middle East, could change the distribution channels and demand for our products and those of our customers, thereby affecting our business performance.」

「During the consolidated interim period, the global economy saw a slower recovery, with some regions, including China, remaining stagnant. The outlook remained uncertain, including due to concerns about the impact of U.S. tariff policies on prices and consumption. Net sales for the consolidated interim period were ¥277.119 billion, down 4.3% year on year, and operating profit was ¥20.121 billion, down 36.3%.」

「In addition, U.S. tariff policies and the tariff policies of other countries resulting from them could slow the global economy, alter the distribution channels and demand for the group's products and its customers' products, and affect results.」

「Although some of the group's key markets showed signs of recovering demand, the recovery remained slow, resulting in difficult business conditions.」

「The mobility business, including inflators for automobile airbags, saw higher revenue as automobile production recovered from the same period of the previous year due partly to an easing of the semiconductor shortage, resulting in higher sales volumes.」

「The businesses of Polyplastics Co., Ltd., including polyacetal resins, PBT resins and liquid crystal polymers, saw lower sales volumes and lower revenue due to the continued impact of inventory adjustments for automobile parts from the previous fiscal year through the beginning of the second quarter, as well as sluggish demand in IT-related industries. Sales in this segment were ¥108.696 billion, down 12.0% year on year, while operating profit was ¥6.125 billion, down 57.6%, owing mainly to lower sales volumes.」

「During the cumulative first quarter of the fiscal year, the global economy continued to recover moderately as economic activity normalized, but remained in an uncertain environment due to the effects of global monetary tightening, rising prices, and the prolonged situation in Ukraine. Although some of the group's key markets showed signs of recovering demand, the recovery remained slow, resulting in difficult business conditions.」

「During the cumulative second quarter of the fiscal year, the global economy continued to recover from the effects of the spread of COVID-19, but remained in an uncertain environment due to factors including reduced automobile production caused by lockdowns in China and semiconductor shortages, higher raw material and fuel prices affected by the situation in Ukraine, accelerating global inflation, logistics disruptions, and the yen's depreciation against other currencies.」

「During the cumulative first quarter of the fiscal year, the global economy continued to recover from the effects of the spread of COVID-19, but remained in an uncertain environment due to factors including reduced automobile production caused by lockdowns in China and semiconductor shortages, higher raw material and fuel prices affected by the situation in Ukraine, accelerating global inflation, and logistics disruptions.」

「During the consolidated fiscal year, the global economy remained in an uncertain environment, although some areas showed signs of recovery from the stagnation of economic activity caused by COVID-19, due to the renewed spread of infections, automobile production cuts caused by the semiconductor shortage, disruptions in logistics, and the situation in Ukraine.」

「During the cumulative third quarter of the fiscal year, the global economy remained in an uncertain environment, although some areas showed signs of recovery from the stagnation of economic activity caused by COVID-19, due to the renewed spread of infections, automobile production cuts caused by the semiconductor shortage, and disruptions in logistics. Against this backdrop, the group steadily captured sales opportunities arising from the recovery in demand and implemented sales price adjustments and thorough cost reductions. Compared with the same period of the previous year, which was heavily affected by COVID-19, net sales for the cumulative third quarter were ¥342.979 billion, up 21.9% year on year, operating profit was ¥39.281 billion, up 109.8%, ordinary profit was ¥43.181 billion, up 113.5%, and quarterly net profit attributable to owners of the parent was ¥23.502 billion, up 109.2%.」

「During the cumulative second quarter of the fiscal year, the global economy remained in an uncertain environment, although some areas showed signs of recovery from the stagnation of economic activity caused by COVID-19, due to the renewed spread of infections and automobile production cuts caused by the semiconductor shortage. Against this backdrop, the group steadily captured sales opportunities arising from the recovery in demand and implemented sales price adjustments and thorough cost reductions. Compared with the same period of the previous year, which was heavily affected by COVID-19, net sales for the cumulative second quarter were ¥224.817 billion, up 28.2% year on year, and operating profit was ¥27.259 billion, up 199.3%.」

「During the cumulative first quarter of the fiscal year, the global economy remained in an uncertain environment, although some areas showed signs of recovery from the stagnation of economic activity caused by the spread of COVID-19 infections, due to the renewed spread of infections and the impact of the semiconductor shortage.」

「Although the group was affected by sluggish demand across various industries in the first half of the fiscal year, it worked intensively to reduce costs and steadily captured sales opportunities arising from the recovery in demand, including automobile production, restoring results as the period progressed.」

「During the cumulative third quarter of the fiscal year, the global economy remained in a difficult and uncertain environment, although some areas showed signs of recovery from the stagnation of economic activity caused by the spread of COVID-19 infections. Against this backdrop, results declined in both revenue and earnings year on year, excluding quarterly net profit attributable to owners of the parent, owing to the impact of sluggish demand across various industries at the beginning of the period. However, the group worked intensively to reduce costs while steadily capturing sales opportunities arising from the recovery in demand, including automobile production, and restored results as the period progressed.」

「During the cumulative second quarter of the fiscal year, the global economy remained in a difficult and uncertain environment, although some areas showed signs of recovery from the stagnation of economic activity caused by the spread of COVID-19 infections. Against this backdrop, the group worked intensively to reduce costs and secure earnings, but demand remained sluggish across a range of industries, including due to a decline in automobile production, resulting in lower revenue and earnings in the cumulative second quarter compared with the same period of the previous year.」

「Against this backdrop, the group worked intensively to reduce costs and secure earnings, but demand remained sluggish across a range of industries, including due to a decline in automobile production, resulting in lower revenue and earnings in the cumulative first quarter compared with the same period of the previous year.」

「During the consolidated fiscal year, the global economy remained in an uncertain environment due to escalating trade friction between the United States and China, a slowdown in China's economy, deteriorating Japan-South Korea relations, and the spread of COVID-19 infections.」

「During the cumulative third quarter of the fiscal year, the global economy remained in an uncertain environment due to escalating trade friction between the United States and China, a slowdown in China's economy, and deteriorating Japan-South Korea relations. Against this backdrop, the group's results for the cumulative third quarter were net sales of ¥312.791 billion, down 12.4% year on year, operating profit of ¥22.641 billion, down 49.5%, and ordinary profit of ¥24.277 billion, down 49.4%.」

「During the cumulative second quarter of the fiscal year, the global economy remained in an uncertain environment due to escalating trade friction between the United States and China, a slowdown in China's economy, and deteriorating Japan-South Korea relations. Against this backdrop, the group's results for the cumulative second quarter were net sales of ¥210.681 billion, down 10.4% year on year, operating profit of ¥17.858 billion, down 39.5%, ordinary profit of ¥18.658 billion, down 42.1%, and quarterly net profit attributable to owners of the parent of ¥11.683 billion, down 47.8%.」

「In the cumulative first quarter of the fiscal year, net sales were below the earnings forecast owing mainly to the greater-than-expected slowdown in China's economy, but operating profit progressed broadly in line with expectations as the company pursued further cost reductions.」

「During the consolidated fiscal year, the global economy remained in an uncertain environment, including due to escalating trade friction between the United States and China, although the economy continued to recover moderately, led by the United States, despite a slowdown in China in the second half of the year.」

「Meanwhile, conditions remained uncertain, including due to escalating trade friction between the United States and China.」

「Meanwhile, conditions remained uncertain, including due to escalating trade friction between the United States and China.」

「Although supply and demand were easing globally and the company worked to strengthen relationships with key customers and develop new customers, tobacco filter tow sales declined owing to softer market conditions and lower sales volumes resulting partly from shifts in delivery timing.」

「Although supply and demand were easing globally and sales volumes increased through stronger relationships with key customers and the development of new customers, with an impact from foreign exchange rates, tobacco filter tow was affected by softer market conditions, and net sales declined slightly.」

「Although tobacco filter tow was affected by softer market conditions resulting from a global easing of supply and demand, net sales increased owing to higher sales volumes from stronger relationships with key customers and the development of new customers, as well as the impact of foreign exchange rates.」

「The engineering plastics business, including polyacetal resins, PBT resins and liquid crystal polymers, saw a slowdown in emerging-market economies such as China and weakness in the electronic device products market, although」

「Although the engineering plastics business, including polyacetal resin, PBT resin, and liquid crystal polymers, faced slowing emerging-market economies such as China's and sluggish electronic device product markets, sales volumes increased owing in part to strong automobile production in China and Southeast Asia.」

「Although sales volumes in the engineering plastics business, including polyacetal resin, PBT resin, and liquid crystal polymers, increased amid a market environment characterized by slowing emerging-market economies such as China's, slower growth at Japanese automakers, and weak sales of electronic device products, revenue declined due in part to the impact of foreign exchange movements and the effect of lower raw material and fuel prices on selling prices.」

「If excess supply were to arise because of large-scale plant construction by competitors or similar factors, or if demand were to fall sharply due to an economic downturn, the profitability of the relevant business could deteriorate.」