Impact of Foreign Exchange Fluctuations on Performance and Earnings
First written in FY2017-Q1. 17 of 35 entries say "Mitigated", first in FY2018-Q1. Latest entry: FY2026.
Kansai Paint moved to the "Worse" side of this theme in 2019, 1 year after the typical company in this theme (2018).
The whole theme swung hardest in 2024: 14 of 31 companies on the "Worse" side.
13 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「The main factors behind the increase were the recording of a foreign exchange gain and higher equity-method investment income.」
The foreign exchange loss in the previous year changed to a foreign exchange gain of ¥5,268 million in the current period, mitigating the pressure of currency movements on ordinary profit. However, foreign currency translation risk and hedging transactions continue. - 2026-05-11MitigatedEarnings
「Ordinary profit was ¥54.713 billion, up 11.4% year on year, due mainly to foreign exchange gains and an increase in equity in earnings of affiliates.」
The company shifted from foreign exchange losses to gains, while equity in earnings of affiliates also increased, easing the pressure on ordinary profit from foreign exchange and market movements. - FY2026-H1MitigatedAnnual report
「Ordinary profit was ¥28.606 billion, up 10.0% year on year, due in part to the recording of a foreign exchange gain and a decrease in losses related to net monetary positions under hyperinflationary accounting.」
The foreign exchange loss in the same period of the previous year changed to a foreign exchange gain in the current interim consolidated accounting period, and losses under hyperinflationary accounting also decreased, mitigating the pressure of foreign exchange and market movements on ordinary profit. However, the translation impact of yen appreciation remains in India. - FY2025WorsenedAnnual report
「Ordinary profit was ¥49.103 billion, down 14.9% from the previous period, due in part to a substantial decline in equity-method investment income following the recording of losses related to net monetary positions under hyperinflationary accounting and a foreign exchange loss, as well as impairment losses, including goodwill, recorded by equity-method affiliates.」
The foreign exchange gain in the previous year changed to a foreign exchange loss, and losses under hyperinflationary accounting were also recorded, causing foreign exchange and market movements to depress ordinary profit. - FY2025-H1WorsenedAnnual report
「Ordinary profit was ¥25.996 billion, down 19.0% year on year, due in part to the recording of a foreign exchange loss and an increase in losses related to net monetary positions under hyperinflationary accounting.」
The foreign exchange gain in the same period of the previous year changed to a foreign exchange loss of ¥2.310 billion in the current interim consolidated accounting period, and currency movements depressed ordinary profit. - FY2024MitigatedAnnual report
「Despite the recording of a loss related to net monetary positions under hyperinflationary accounting, ordinary profit was ¥57.685 billion, up 43.4% from the previous period, due in part to higher equity-method investment income and foreign exchange gains.」
The foreign exchange gain increased from ¥771 million in the previous period to ¥1,837 million, and the impact of currency movements on consolidated earnings remained on the gain side. - FY2024-Q3WorsenedAnnual report
「Foreign exchange gain 391 - Foreign exchange loss - 1,012」
The foreign exchange gain of ¥391 million in the same period of the previous year changed to a foreign exchange loss of ¥1,012 million in the cumulative third quarter of the current fiscal year, worsening the impact of currency movements on consolidated earnings. - FY2024-Q2MitigatedAnnual report
「Ordinary profit was ¥32.084 billion, up 52.5% year on year, due in part to higher equity-method investment income and an increase in the foreign exchange gain resulting from yen depreciation.」
The increase in the foreign exchange gain resulting from yen depreciation contributed to higher ordinary profit, and the impact of foreign exchange during the cumulative period appeared on the gain side. - FY2024-Q1MitigatedAnnual report
「Foreign exchange gain 2,540 3,002」
The foreign exchange gain for the cumulative first quarter of the current consolidated fiscal year was ¥3,002 million, up from ¥2,540 million in the same period of the previous year. Although the impact of currency movements remains, their impact on consolidated earnings increased on the gain side. - FY2023Decline in Foreign-Exchange GainsAnnual report
「Non-operating income was positive at ¥8.139 billion, an increase of ¥624 million from the previous period. The main factors behind the increase were higher equity-method investment income and lower interest expenses.」
The foreign exchange gain in consolidated earnings narrowed from ¥1,447 million in the previous period to ¥771 million. Hedging transactions, including forward exchange contracts, continued, and although the impact of foreign exchange remains, the current period was on the gain side. - FY2023-Q3Foreign exchange gain narrows; loss in some regionsAnnual report
「Although fixed costs continued to decline as a result of the ongoing streamlining of unprofitable businesses and infectious disease-related insurance proceeds were received, profit fell below the previous year's level due to the occurrence of foreign exchange losses.」
The foreign exchange gain in consolidated earnings narrowed from ¥694 million in the same period of the previous year to ¥391 million, while a foreign exchange loss arose in Africa and depressed profit. - FY2023-Q2MitigatedAnnual report
「Ordinary profit was ¥21.041 billion, up 1.3% year on year, due in part to an increase in the foreign exchange gain resulting from yen depreciation,」
Yen depreciation increased the foreign exchange gain, and the impact of foreign exchange on consolidated earnings in the quarter appeared on the gain side. - FY2023-Q1MitigatedAnnual report
「Although operating profit was in line with the previous year, ordinary profit was ¥13.197 billion, up 13.7% year on year, due in part to an increase in the foreign exchange gain resulting from yen depreciation,」
Yen depreciation increased the foreign exchange gain, which rose from ¥142 million in the same period of the previous year to ¥2,540 million. Although the impact of currency movements remains, their impact on consolidated earnings in the quarter shifted to the gain side. - FY2022-Q3MitigatedAnnual report
「Ordinary profit was ¥30.243 billion, up 21.5% year on year, due in part to higher equity-method investment income and the change to a foreign exchange gain.」
The foreign exchange loss of ¥1,048 million in the same period of the previous year changed to a foreign exchange gain of ¥694 million in the cumulative third quarter of the current fiscal year, mitigating the pressure of currency movements on consolidated earnings. - FY2022-Q2MitigatedAnnual report
「Foreign exchange gain - 332」
In the cumulative second quarter of the current consolidated fiscal year, a foreign exchange gain of ¥332 million was recorded, improving the impact of foreign exchange on consolidated earnings from the foreign exchange loss of ¥678 million in the cumulative period of the same quarter of the previous year. - FY2022-Q1MitigatedAnnual report
「Foreign exchange gain - 142」
In the cumulative first quarter of the current consolidated fiscal year, a foreign exchange gain of ¥142 million was recorded, improving the impact of foreign exchange on consolidated earnings from the foreign exchange loss of ¥170 million in the same period of the previous year. - FY2021MitigatedAnnual report
「The main factors behind the increase were higher equity-method investment income and a decrease in the foreign exchange loss.」
The foreign exchange loss decreased from ¥1,466 million in the previous period to ¥560 million, mitigating the full-year pressure of currency movements on consolidated earnings. However, the downward translation impact of overseas sales due to yen appreciation remains. - FY2021-Q3MitigatedAnnual report
「Foreign exchange loss 1,575 1,048」
The foreign exchange loss for the cumulative third quarter of the current consolidated fiscal year was ¥1,048 million, down from ¥1,575 million in the cumulative period of the same quarter of the previous year. Although the impact of currency movements remains, the foreign exchange loss in consolidated earnings has decreased. - FY2021-Q1RestatedAnnual report
「Sales remained firm, particularly in the industrial and automotive replacement markets, and increased on a local-currency basis. However, due to the downward impact of foreign currency translation, sales fell slightly below the previous year’s level.」
In Europe, sales increased on a local-currency basis, but the downward impact of foreign currency translation continued. Currency depreciation also continued in Africa, and the impact of foreign exchange continues to be reflected in performance. - FY2020WorsenedAnnual report
「Non-operating income was positive at ¥3.363 billion, an increase of ¥831 million from the previous period. The main factors behind the increase were lower provisions for doubtful accounts related to the Middle East region and a decrease in equity-method investment losses from that region. The main factors behind the decrease were lower interest income associated with bond redemptions and an increase in the foreign exchange loss.」
The foreign exchange loss increased from ¥635 million in the previous period to ¥1,466 million, increasing the full-year pressure on earnings from currency movements. - FY2020-Q3WorsenedAnnual report
「Ordinary profit was ¥29.447 billion, up 5.3% year on year, due in part to an increase in the foreign exchange loss.」
The foreign exchange loss increased from ¥302 million in the same period of the previous year to ¥1,575 million. In Turkey, currency depreciation placed pressure on raw material prices and earnings, while in other European countries, the increase in sales on a local-currency basis was depressed by foreign currency translation. - FY2020-Q2WorsenedAnnual report
「In Turkey, sales increased on a local-currency basis, but the impact of currency depreciation on raw material prices and other factors placed pressure on earnings. In addition, demand in the construction sector remained sluggish due to weak domestic economic conditions, and equity-method investment income declined. In other European countries, sales increased on a local-currency basis as the industrial sector remained firm. However, performance was affected by the downward impact of foreign currency translation.」
In Turkey, currency depreciation affected raw material prices and earnings, while in other European countries, the increase in sales on a local-currency basis was depressed by foreign currency translation. - FY2020-Q1WorsenedAnnual report
「In Turkey, sales increased on a local-currency basis, but the impact of currency depreciation on raw material prices and other factors placed pressure on earnings.」
In Turkey, sales increased on a local-currency basis, while currency depreciation affected raw material prices and earnings, and foreign exchange risk is depressing actual performance. - FY2019WorsenedAnnual report
「In Turkey, although vehicle production fell below the previous year’s level, sales increased substantially on a local-currency basis due to efforts to promote sales. However, profit declined due to the impact of currency depreciation, which increased the foreign exchange loss, as well as a decline in equity-method investment income.」
In Turkey, sales increased on a local-currency basis, while the increase in the foreign exchange loss caused by currency depreciation depressed profit. Risk disclosures have also expanded to include market fluctuations in foreign exchange rates, interest rates and other areas. - FY2019-Q3WorsenedAnnual report
「In Turkey, although vehicle production fell below the previous year’s level, sales increased substantially on a local-currency basis due to efforts to promote sales. However, profit declined due to the impact of currency depreciation, which increased the foreign exchange loss, as well as a decline in equity-method investment income.」
In Turkey, sales increased on a local-currency basis, while currency depreciation increased the foreign exchange loss and reduced profit. The situation in which foreign exchange effects continue to depress actual earnings remains. - FY2019-Q2MaterialisedAnnual report
「However, performance on a yen basis was affected by the downward impact of foreign currency translation.」
Despite improvement in Turkey on a local-currency basis, performance on a yen basis was depressed by foreign currency translation. The impact of currency depreciation on foreign currency translation was also noted in India. - FY2019-Q1WorsenedAnnual report
「Although equity-method investment income increased, ordinary profit was ¥9.328 billion, down 14.4% year on year, due in part to an increase in the foreign exchange loss.」
The foreign exchange loss increased, and although equity-method investment income also increased, ordinary profit fell 14.4% year on year. - FY2018MitigatedAnnual report
「Although the foreign exchange loss decreased, ordinary profit was ¥33.241 billion, down 16.9% from the previous period, due in part to a decline in equity-method investment income in Asia and the recording of an allowance for doubtful accounts.」
The foreign exchange loss decreased from ¥1,624 million in the previous period to ¥459 million. The company also indicated a policy of hedging through forward exchange contracts and other measures, as well as transferring production and increasing local procurement. - FY2018-Q3MitigatedAnnual report
「Although the foreign exchange loss decreased, ordinary profit was ¥32.081 billion, up 8.3% year on year, due in part to a decline in equity-method investment income in Asia.」
The foreign exchange loss decreased and its impact on consolidated profit was mitigated, but foreign currency translation had a positive impact in India and a negative impact in Europe, so the impact of foreign exchange remains. - FY2018-Q2MitigatedAnnual report
「Although the foreign exchange loss decreased and a gain was recorded from the revision of the retirement benefit plan, ordinary profit was ¥22.525 billion, up 19.5% year on year, due in part to impairment losses and the recording of early retirement premiums overseas.」
The foreign exchange loss decreased from the same period of the previous year, but performance in Europe was depressed on a yen basis by foreign currency translation, and the impact of foreign exchange remains. - FY2018-Q1MitigatedAnnual report
「As the foreign exchange loss decreased and a gain was recorded from the revision of the retirement benefit plan, ordinary profit was ¥10.893 billion, up 15.6% year on year.」
The impact of the foreign exchange loss decreased from the same period of the previous year, but performance in Europe was depressed on a yen basis by foreign currency translation, and foreign exchange risk itself remains. - FY2017MaterialisedAnnual report
「The company was also significantly affected by foreign currency translation across its overseas operations.」
Foreign currency translation affected full-year overseas performance, and a foreign exchange loss of ¥1.624 billion was recorded in the consolidated income statement. - FY2017-Q3RestatedAnnual report
「The company was also significantly affected by foreign currency translation across its overseas operations.」
The impact of foreign currency translation on overseas performance continues to be disclosed. - FY2017-Q2MaterialisedAnnual report
「The company was also significantly affected by foreign currency translation across its overseas operations.」
Foreign currency translation depressed overseas performance, and the cumulative foreign exchange loss stood at ¥1.791 billion. - FY2017-Q1First statedAnnual report
「The company was also significantly affected by foreign currency translation across its overseas operations.」
The company recorded a foreign exchange loss of ¥1,178 million, and performance in the overseas segment was depressed on a yen basis by foreign currency translation.