Raw Material Price Volatility, Supply Shortages and Supply Delays

「Against this backdrop, the Group is working to improve its earnings base by promoting appropriate product pricing, rationalization including the consolidation and closure of facilities, productivity improvements and cost reductions.」

「Because most of the products handled are intermediate products, the Company has been unable to keep pace with the increase in costs caused by the recent depreciation of the yen and surging material prices, leaving it in a challenging business environment.」

「Under these circumstances, the group's earnings showed an improving trend in profitability as the decline in orders in the functional materials segment appeared to have bottomed out and price pass-through progressed. However, the company was unable to fully offset the surging costs, including persistently high raw material costs, and therefore remained in an operating loss.」

「In terms of earnings, the delay in passing through increases in raw material and electricity and fuel costs, together with the higher fixed-cost burden resulting from lower production volumes, resulted in an operating loss.」

「Meanwhile, persistently high resource and energy prices have driven up electricity and gasoline prices. Consumer efforts to protect household finances are therefore expected to intensify, leaving the outlook for consumption uncertain.」

「The company posted a loss because lower sales volumes in the functional materials segment increased the fixed-cost burden, rising naphtha prices increased raw-material costs, and price increases had not kept pace with higher electricity and fuel costs.」

「In terms of earnings, the company was unable to keep pace with passing through increases in raw material and electricity and fuel costs, and was significantly affected by lower sales in the functional materials segment, resulting in a loss.」

「In terms of earnings, the company was unable to fully pass through to selling prices the increase in manufacturing costs resulting from persistently high crude oil prices and soaring raw material prices and electricity and fuel costs. This coincided with a higher fixed-cost ratio due to lower sales volumes in the functional materials segment, resulting in an operating loss.」

「In terms of earnings, persistently high crude oil prices sharply increased raw material prices and electricity and fuel costs, substantially raising costs. Although the company is pursuing pass-through to selling prices and production rationalization in response, these measures were insufficient to offset the increase fully, and operating profit declined.」

「In terms of earnings, the impact of surging crude oil prices from the second half onward has pushed up raw material prices and weighed on profitability. However, operating profit increased as the company steadily captured firm demand in the first half.」

「In terms of earnings, rising raw material prices, including those resulting from surging crude oil prices, have begun to weigh on profitability. However, the company is working to secure profits by further improving production efficiency and reviewing selling prices.」

「In terms of earnings, although raw material costs were trending upward, the increase was absorbed through higher production volumes and progress in rationalization. The contribution from シノムラ化学工業株式会社's results also resulted in higher operating profit, ordinary profit and quarterly net income attributable to owners of the parent.」

「In terms of earnings, operating profit, ordinary profit and profit attributable to owners of the parent all increased, owing to improved profitability in the industrial materials segment, lower raw material costs, and rationalization efforts including expense reductions.」

「This, together with the sustained decline in raw material prices throughout the fiscal year, enabled us to restore profitability.」

「In terms of earnings, operating profit and ordinary profit increased due to lower raw material costs, improved profitability in the industrial materials segment and a reduction in equity-method investment losses, among other factors.」

「Because the Group's products primarily use petrochemical products, mainly polyethylene, as raw materials, their purchase prices are affected by fluctuations in crude oil prices and foreign exchange rates.」

「Operating profit for the consolidated fiscal year was ¥326 million, a 72.8% year-on-year decline. A factor common to all segments was the increase in raw material costs resulting from higher prices for resins, plastic film and other materials due to the rise in crude oil prices.」

「In terms of earnings, the decline in operating profit widened as lower sales coincided with higher raw material costs and a lower sales mix of relatively high-margin products, among other factors.」

「In terms of earnings, the decline in profits widened as several factors coincided, including higher raw material costs following the rise in crude oil prices, only partial pass-through to selling prices, and a lower sales mix of relatively high-margin products.」

「In terms of earnings, profits declined due not only to factors related to lower revenue but also to higher raw material costs resulting from the rise in crude oil prices.」

「Supported by strong orders for functional materials, net sales increased. However, profitability declined in both the light packaging materials and industrial materials segments as the cost burden of the new plant completed in the previous fiscal year increased and raw material costs rose markedly from the second half onward, resulting in lower profits.」

「Under these circumstances, the earnings of the group began to show signs of slowing profitability due to the cost burden of the new factory completed in the previous fiscal year and higher raw material costs. However, supported by strong orders for functional materials, the group maintained an overall trend of higher revenue.」

「Crude oil prices have been trending higher following the production-cut agreement reached late last year by OPEC and non-member countries, but the impact during the nine-month consolidated period ended in the third quarter was limited.」

「Because raw materials account for a high proportion of manufacturing costs, if increases in raw material costs cannot be fully absorbed through production rationalization and pass-through to product prices, gross profit will decline, affecting earnings growth.」