Sales price adjustments in response to rising raw material and energy prices

「Appropriate pricing and an improved product mix have contributed to earnings.」

「引き続き原材料値上げに対応する価格転嫁及び製品販売価格の是正を実施しました。」

「As a result, the Group's results for the current interim consolidated accounting period benefited from recovering demand, the partial realization of price corrections and the temporary effect of passing through price increases attributable to the situation in the Middle East. Revenue was ¥3,138 million, up 12.1% year on year. Ordinary profit was ¥210 million, compared with an ordinary loss of ¥18 million in the same period a year earlier, and interim net profit attributable to owners of the parent was ¥154 million, compared with an interim net loss attributable to owners of the parent of ¥11 million. In addition to correcting selling prices and reducing various expenses, the Company temporarily passed higher raw material costs resulting from the situation in the Middle East through to product prices. At the same time, a time lag arose in the manufacturing costs of products shipped, with raw material prices from before the increase being reflected, temporarily raising the profit margin.」

「Sales volumes did not increase because of weak demand caused by lower production among major customers in sectors such as machinery and metals, but the effect of correcting some selling prices resulted in net sales of ¥5,932 million, up 0.3% year on year. Profit was affected by raw material prices remaining elevated longer than expected and increases in various expenses, including logistics and labor costs, which could not be fully offset through productivity improvements and price pass-through. Ordinary profit was ¥96 million, down 32.6% year on year, and net income attributable to owners of the parent was ¥72 million, down 57.6%.」

「The Group's performance for the interim consolidated accounting period was affected by a continued decline in demand, including the impact of a substantial decrease in production volumes among major customers in sectors such as machinery and metals. Net sales were ¥2,799 million, down 3.9% year on year. In terms of profit, although the Company proceeded with price revisions, the ordinary loss was ¥18 million, compared with ordinary profit of ¥83 million in the prior-year period, due to the decline in sales, continued high raw material prices and increases in various expenses, including transportation costs.」

「In addition to lower net sales, the Company was unable to fully offset the longer-than-anticipated period of soaring raw material prices and increases in various expenses, including logistics and personnel costs, through productivity improvements and passing costs on through selling prices. As a result, ordinary profit was ¥142 million, ¥113 million below the ¥256 million plan for the consolidated fiscal year, representing a 44.2% decrease against the plan. The ordinary profit margin on net sales was 2.4%, below the planned 3.9%.」

「The Group's results for the first six months of the current consolidated cumulative period were affected by sluggish demand for products used by major customers, owing to the slowdown in overseas economies and stagnant personal consumption caused by higher prices. Revenue was ¥2,913 million, down 0.7% year on year. Although price revisions were implemented, various expenses, including raw material and transportation costs, continued to rise. Ordinary profit was ¥83 million, down 18.0%, and profit attributable to owners of the parent was ¥58 million, down 23.4%.」

「Under these circumstances, the Group's performance for the first-quarter cumulative consolidated period was supported by recovering customer demand and progress on price revisions, resulting in net sales of ¥1,438 million, up 2.6% year on year.」

「Net sales generally followed the plan, exceeding the consolidated fiscal-year plan of ¥6,100 million by ¥42 million to reach ¥6,142 million, up 0.7% against the plan. Although the Company proceeded with selling price adjustments and expense reductions, ordinary profit fell ¥61 million short of the consolidated fiscal-year plan of ¥300 million, at ¥238 million, down 20.4% against the plan, due to higher-than-expected raw material and utility costs and increases in various expenses, including logistics costs. The ordinary profit margin on net sales was 3.9%, below the planned 4.9%.」

「Against this backdrop, revenue for the first nine months of the current consolidated cumulative period was ¥4,510 million, up 11.6% year on year. Although raw material prices remained elevated and various expenses, including logistics and electricity costs, continued to rise, progress on price revisions resulted in ordinary profit of ¥177 million, up 34.6%, and profit attributable to owners of the parent of ¥135 million, up 30.9%.」

「Under these circumstances, the Group's performance for the second-quarter cumulative consolidated period was supported by a recovery trend in customer demand and progress on price revisions, resulting in net sales of ¥2,934 million, up 10.6% year on year.」

「Under these circumstances, the Group's performance for the first-quarter cumulative consolidated period was supported by recovering customer demand and progress on price revisions, resulting in net sales of ¥1,402 million, up 10.1% year on year.」

「The financial position for the consolidated fiscal year was affected by higher raw material and energy prices. As the Company proceeded with selling price adjustments, sales and purchases increased, resulting in higher receivables and payables at the end of the period than at the end of the previous consolidated fiscal year, and an increase in total assets.」