Raw Material Price Volatility and Dependence on Certain Suppliers

「In the chemicals segment, demand for semiconductor-related materials and other products remained firm, while the easing of supply and demand for general-purpose products continued against a backdrop of stagnation in the Chinese economy. In addition, persistently high raw material and energy prices, as well as higher costs including logistics and labor expenses, continued to put pressure on earnings.」

「In the chemicals segment, although demand for AI-related materials has remained firm, surging raw material, logistics and energy costs are putting pressure on earnings. The Company recognizes the need to continue monitoring developments in the business environment.」

「The outlook remains uncertain because, in addition to volatility in the financial and capital markets, persistently high raw material and fuel prices and yen depreciation, factors weighing on overseas economies, including high interest rates in Europe and the United States and stagnation in China's property market, pose risks to economic growth.」

「In the chemicals segment as well, with market conditions for product groups that have driven the chemicals industry, including petrochemical products, semiconductor-related products and EV batteries, remaining weak, raw material and fuel prices remain high, making an impact on earnings unavoidable. The Company recognizes that the difficult business environment is continuing.」

「In the chemicals segment as well, although the market, particularly for semiconductor-related products, is stagnating, raw material and energy costs remain high, making it difficult to avoid pressure on earnings. The Company recognizes that the difficult business environment is continuing.」

「In the chemicals segment as well, as the semiconductor-related market continues to stagnate, the Company remains in a situation requiring continued monitoring of developments in surging raw material and fuel prices and short-term fluctuations in foreign exchange rates, among other factors, and believes that the outlook is becoming increasingly uncertain. Along with lower net sales and a higher cost-of-sales ratio, operating profit fell 24.3% from the same quarter of the previous year to ¥308 million」

「In the chemicals segment as well, although business has remained firm, led mainly by semiconductor-related industries, earnings have come under pressure from surging raw material and energy costs. The Company recognizes that the difficult business environment is continuing.」

「In the chemicals segment as well, although business has remained firm, led mainly by semiconductor-related industries, earnings have come under pressure from higher raw material and energy costs. The Company recognizes that the difficult business environment is continuing.」

「However, the outlook remains uncertain as surging raw material and fuel prices, the continuing depreciation of the yen and heightened geopolitical risks persist.」

「The purchase prices of raw materials and other inputs used by the Company are affected by domestic and overseas conditions, as well as trends in crude oil and naphtha prices. The Company also relies on certain suppliers for some raw materials and other inputs. Although the Company is working to minimize these effects through cost reductions and passing costs on to selling prices, surging raw material prices could affect its business.」

「In the chemicals segment, although the economy is showing signs of recovery, led mainly by semiconductor-related industries, the outlook remains uncertain due to surging raw material and fuel prices. The Company recognizes the importance of monitoring and responding to changes in the external environment surrounding its business.」

「During the cumulative second quarter, the Japanese economy showed signs of recovery from the deterioration in domestic and overseas economies caused by the spread of COVID-19. However, the normalization process is expected to take some time, as fuel and raw material prices have gradually risen and maritime transport supply and demand have tightened due to worsening global port conditions and container shortages.」

「For the current period, net sales reached a record high, rising 3.5% from the previous period to ¥11,091 million. However, due to higher raw material costs and weak sales of chemical products, operating profit fell to ¥218 million and ordinary profit to ¥176 million.」

「Meanwhile, amid unstable supply systems in countries around the world, some raw material procurement is temporarily and locally shifting back to domestic sources.」

「In the chemicals segment as well, although international market conditions are weakening, the outlook remains uncertain, given price increases for petrochemical products accompanying the rise in crude oil prices due to heightened tensions in the Middle East, as well as foreign exchange trends and other factors.」

「Due mainly to higher manufacturing costs resulting from surging purchase prices for raw materials and fuels, operating profit was ¥49 million, a decrease of ¥156 million, or 76.0%, from the same period of the previous year.」

「In the chemicals segment, utilization of existing facilities has remained high. However, the outlook remains uncertain, given movements in petrochemical product prices accompanying fluctuations in crude oil prices and foreign exchange trends, among other factors.」

「In the chemicals segment, plant utilization has remained high and market conditions have continued at elevated levels. However, the outlook remains uncertain, given price increases for petrochemical products accompanying the rise in crude oil prices and foreign exchange trends, among other factors.」

「The purchase prices of raw materials and other inputs used by the Company are affected by domestic and overseas conditions, as well as trends in crude oil and naphtha prices. The Company also relies on certain suppliers for some raw materials and other inputs. Although the Company is working to minimize these effects through cost reductions and passing costs on to selling prices, surging raw material prices could affect its business.」

「Although concerns remain about the potential impact of future fluctuations in petrochemical raw material prices and export selling prices,」

「Although concerns remain about the potential impact of future fluctuations in petrochemical raw material prices and export selling prices due to trends in crude oil prices and foreign exchange rates,」

「The purchase prices of raw materials and other inputs used by the Company are affected by domestic and overseas conditions, as well as trends in crude oil and naphtha prices. The Company also relies on certain suppliers for some raw materials and other inputs. Although the Company is working to minimize these effects through cost reductions and passing costs on to selling prices, surging raw material prices could affect its business.」

「In the chemical industry as well, supply-demand conditions are relatively firm and stable, but downside factors include higher petrochemical feedstock prices linked to crude oil prices and the impact of foreign exchange movements. The outlook for their effect on corporate earnings remains unpredictable.」

「The purchase prices of raw materials and other items used by the company are affected by domestic and overseas conditions, as well as trends in crude oil and naphtha prices. The company also depends on certain suppliers for some raw materials and other items.」