Pressure on earnings from soaring raw material prices and increased fixed costs
First written in FY2018-Q1. 14 of 32 entries say "Worsened", first in FY2018-Q2. Latest entry: 2026-11-12.
Nihon Tokushu Toryo moved to the "Worse" side of this theme in 2017, 4 years before the typical company in this theme (2021).
The whole theme swung hardest in 2022: 78 of 119 companies on the "Worse" side.
19 other companies' latest entry also says "Mitigated".
- FY2026WorsenedAnnual report
「The current business environment is expected to remain difficult, including higher raw material and energy prices resulting from growing uncertainty in the Middle East and increases in logistics and labor costs.」
In addition to higher raw material and energy prices, expected increases in logistics and labor costs stemming from the situation in the Middle East are explicitly identified as factors pressuring earnings. - FY2026-H1WorsenedAnnual report
「During the interim consolidated accounting period, signs of an economic recovery continued in Japan against the backdrop of improving employment and income conditions. However, the operating environment remained uncertain owing to exchange-rate fluctuations, the impact of U.S. tariff policy, and persistently high energy and raw material costs resulting from the prolonged situations in Ukraine and the Middle East.」
The company explicitly identifies the prolonged situations in Ukraine and the Middle East as factors behind persistently high raw material and energy prices, providing greater detail on the background to the factors pressuring earnings. - FY2025WorsenedAnnual report
「Severe conditions are expected to continue, including persistently high raw material and energy prices and increases in logistics and labor costs.」
In addition to persistently high raw material and energy prices, increases in logistics and labor costs resulting from the labor shortage were explicitly identified as factors pressuring earnings. - FY2025-H1WorsenedAnnual report
「During the interim consolidated accounting period, economic conditions remained on a gradual recovery path, driven mainly by domestic demand as employment and income conditions improved. However, the operating environment remained uncertain, with geopolitical risks rising amid unstable international conditions, raw material and energy prices remaining high, and logistics and labor costs expected to rise amid an increasingly severe labor shortage.」
In addition to persistently high raw material and energy prices, the company explicitly identifies expected increases in logistics and labor costs resulting from the worsening labor shortage as factors pressuring earnings. - FY2024-Q2MitigatedAnnual report
「In terms of earnings, operating profit was ¥1.404 billion, up 51,898.0% year on year, as a result of higher revenue, including product sales price reviews, and ongoing cost and expense reduction measures.」
Amid continued increases in raw material and energy prices and overall price levels, the effects of sales price revisions, cost-reduction activities and expense-reduction measures appeared as an improvement in operating profit, partially mitigating the impact of earnings pressure. - FY2024-Q1MitigatedAnnual report
「In terms of profit and loss, as a result of higher revenue, including through sales price revisions for certain products, as well as ongoing cost-reduction activities and expense-reduction measures, operating profit was ¥641 million, up 1,436.9% year on year.」
While raw material and energy prices remained elevated, the effects of sales price revisions, cost-reduction activities and expense-reduction measures appeared as a substantial improvement in operating profit, partially mitigating the impact of earnings pressure. - FY2023MaterialisedAnnual report
「In terms of profit and loss, the impact of higher raw material and energy prices was greater than the improvement effect, resulting in a segment loss of ¥113 million, compared with segment profit of ¥373 million in the previous fiscal year.」
Higher raw material and energy prices outweighed sales price revisions and their improvement effect, appearing in actual results as a segment loss in the coatings-related business. - FY2023-Q3MaterialisedAnnual report
「In terms of profit and loss, the company has been revising sales prices for certain products, including paints for buildings and structures. However, the impact of higher raw material and energy prices remained significantly greater than the improvement effect, resulting in a segment loss of ¥40 million, compared with segment profit of ¥331 million in the same period of the previous year.」
Higher raw material and energy prices outweighed the improvement effect of sales price revisions, appearing in actual results as a segment loss in the coatings-related business. - FY2023-Q2MaterialisedAnnual report
「In terms of earnings, although the company reviewed the sales prices of some products and continued to promote cost and expense reduction measures, operating profit was ¥2 million, down 98.1% year on year, due to the significant impact of higher raw material and energy prices and other factors.」
Higher raw material and energy prices drove actual operating profit down 98.1% year on year, bringing the risk of earnings pressure into the reported results. - FY2023-Q1WorsenedAnnual report
「In terms of earnings, although the company reviewed the sales prices of some products and continued to promote cost and expense reduction measures, operating profit was ¥41 million, down 65.3% year on year, due to the impact of higher raw material prices and other factors.」
Although the company pursued sales price revisions and measures to reduce costs and expenses, operating profit fell 65.3% year on year due to higher raw material prices and other factors, with earnings remaining under pressure. - FY2022WorsenedAnnual report
「Economic conditions are also expected to remain uncertain, as risks are rising that further increases in raw material prices resulting from the situation in Ukraine, supply chain disruptions, the global semiconductor shortage and other factors will weigh on corporate earnings.」
While raw material prices remain elevated, further increases resulting from the situation in Ukraine, supply chain disruptions and the semiconductor shortage have been added and specified as factors pressuring earnings. - FY2022-Q3WorsenedAnnual report
「During the cumulative third quarter of the fiscal year, the normalization of economic activity was expected as COVID-19 vaccinations progressed. However, in addition to the renewed spread of infections due to new variants, the effects of soaring raw material prices, the global semiconductor shortage and supply chain disruptions remained significant, and the economic outlook continued to be uncertain.」
While raw material prices remain elevated, the company explicitly identifies the renewed spread of infectious diseases, the global semiconductor shortage and supply chain disruptions, continuing to specify the factors pressuring costs and supply. - FY2022-Q2WorsenedAnnual report
「During the cumulative second quarter of the fiscal year, vaccination against COVID-19 progressed in Japan and overseas, raising expectations for the normalization of economic activity and an economic recovery. However, in addition to concerns about a renewed spread of infections, the impact on production activity from rising raw material prices and transportation costs and the global semiconductor shortage was greater than expected, and the outlook for the economy remained uncertain.」
In addition to the previously cited soaring raw material prices, rising transportation costs were explicitly identified, and the factors pressuring costs and supply were expanded to include the impact of the semiconductor shortage on production activity. - FY2022-Q1WorsenedAnnual report
「In addition to the recovery in revenue, the company promoted ongoing cost and expense reduction measures, while being affected to some extent by higher raw material prices and other factors.」
Soaring raw material prices and other factors continue to be identified as factors pressuring profit. - FY2021RestatedAnnual report
「In terms of earnings, despite lower prices for some raw materials and active, ongoing efforts to reduce costs and expenses, the substantial decline in revenue resulted in operating profit of ¥858 million, down 69.6% from the previous fiscal year.」
Although lower prices for some raw materials and continued cost- and expense-reduction measures helped, they did not sufficiently offset the significant impact of lower revenue. - FY2020RestatedAnnual report
「Although efforts to lower the prices of some raw materials and reduce manufacturing costs, mainly manufacturing expenses, had some effect in both businesses, the impact of lower revenue was significant. In addition, higher personnel expenses associated with staff increases and other factors resulted in operating profit of ¥2,827 million, down 4.9% from the previous fiscal year.」
The effects of lower prices for some raw materials and cost-reduction activities were confirmed, but the impact of lower revenue and higher personnel expenses was significant, resulting in a 4.9% decline in operating profit. - FY2020-Q3MitigatedAnnual report
「For this segment, despite lower prices for certain raw materials and the implementation of expense reduction measures, revenue declined substantially, resulting in performance below the year-earlier level.」
Although lower prices for some raw materials and cost-reduction measures eased cost pressures, the substantial decline in revenue resulted in a 6.3% year-on-year decline in profit in the automotive products-related business. - FY2020-Q2MitigatedAnnual report
「In terms of earnings, despite the impact of increased fixed costs, operating profit was ¥1,323 million, up 18.2% year on year, due to lower prices for some raw materials and the implementation of expense-reduction measures.」
Although the impact of increased fixed costs remained, lower prices for some raw materials and expense-reduction measures increased operating profit 18.2% year on year, easing some of the factors pressuring earnings. - FY2020-Q1WorsenedAnnual report
「In terms of earnings, in addition to lower revenue, the significant impact of increased fixed costs resulted in operating profit of ¥404 million, down 25.0% year on year.」
The significant impact of increased fixed costs, combined with lower revenue, caused operating profit to decline 25.0% year on year. The pressure on earnings from fixed-cost burdens also emerged as a specific decline in profit in the first quarter. - FY2019WorsenedAnnual report
「Operating profit was ¥2,973 million, down 9.5% from the previous fiscal year, ordinary profit was ¥4,734 million, down 19.5%, and net income attributable to owners of the parent was ¥2,795 million, down 29.4%.」
Soaring raw material prices and increased fixed-cost burdens pressured full-year profit, resulting in declines in operating profit, ordinary profit and net income attributable to owners of the parent. - FY2019-Q3RestatedAnnual report
「In terms of earnings, despite some benefit from higher revenue, operating profit was ¥2,070 million, down 10.0% year on year, due to soaring raw material prices and increased fixed-cost burdens.」
Soaring raw material prices and increased fixed-cost burdens continued to be identified as factors pressuring profit, and operating profit fell 10.0% year on year. - FY2019-Q2WorsenedAnnual report
「In terms of earnings, despite some benefit from higher revenue, operating profit was ¥1,119 million, down 9.6% year on year, due to soaring raw material prices and increased fixed-cost burdens.」
Soaring raw material prices and increased fixed-cost burdens continued to pressure profit, and operating profit fell 9.6% year on year. - FY2019-Q1RestatedAnnual report
「The segment's revenue exceeded that of the same period of the previous year, as construction-related revenue remained strong, but segment profit fell below the same period of the previous year due to soaring raw material prices and other factors.」
Soaring raw material prices continue to be identified as a factor pressuring profit in the paint-related business. - FY2018WorsenedAnnual report
「In terms of earnings, although the company worked to improve productivity in response to higher revenue, operating profit was ¥3,286 million, up 3.9% from the previous fiscal year, ordinary profit was ¥5,881 million, down 12.8%, and net income attributable to owners of the parent was ¥3,960 million, down 17.1%, due to soaring raw material prices, start-up costs for new parts production and increased fixed costs.」
Soaring raw material prices, start-up costs for new parts production and increased fixed costs continued to pressure profit for the full year, and the operating margin fell 0.9 percentage points from the previous fiscal year to 5.7%. - FY2018-Q3RestatedAnnual report
「In terms of earnings, we worked to improve productivity in response to higher sales, but operating profit was ¥2.3 billion, up 6.0% year on year, due to higher raw material prices, costs related to the launch of production for new parts and increased fixed costs.」
Soaring raw material prices, start-up costs for new parts production and increased fixed costs continued to be identified as factors pressuring profit. Operating profit increased 6.0% year on year. - FY2018-Q2WorsenedAnnual report
「In terms of earnings, we worked to improve productivity in response to higher sales, but operating profit was ¥1,238 million, down 1.8% year on year, due to higher raw material prices, the launch of production for new parts and increased fixed costs.」
In addition to soaring raw material prices and increased fixed costs, start-up costs for new parts production became an additional factor pressuring earnings, and operating profit fell 1.8% year on year. - FY2018-Q1First statedAnnual report
「In terms of earnings, we worked to improve productivity in addition to increasing sales, but operating profit was ¥458 million, up 5.9% year on year, due to higher raw material costs and increased fixed costs.」
The company has, for the first time, identified the impact of higher raw material prices and increased fixed costs on first-quarter operating profit as a separate factor pressuring earnings.