Deterioration in Export Profitability and Product Margins Due to a Stronger Yen
First written in FY2017-Q1. 11 of 22 entries say "Softened", first in FY2017-Q3. Latest entry: FY2026.
ENEOS Holdings moved to the "Worse" side of this theme in 2016, 2 years before the typical company in this theme (2018).
The whole theme swung hardest in 2025: 14 of 17 companies on the "Worse" side.
0 other companies' latest entry also says "Softened".
- FY2026SoftenedAnnual report
「The period-average exchange rate was ¥151, representing a ¥2 year-on-year appreciation of the yen.」
The period average reflected a stronger yen, but the year-on-year appreciation narrowed to ¥2 from ¥8 in the previous fiscal year. The potential impact of foreign exchange movements themselves continues. - FY2026-H1WorsenedAnnual report
「The yen strengthened rapidly from ¥150 at the beginning of the period to the low ¥140 range temporarily in mid-April amid concerns about an economic slowdown resulting from U.S. tariff policy and other factors. It then gradually weakened in response to rising tensions in the Middle East and developments in U.S. monetary policy, ending the period at ¥149. The period average was ¥146, representing a ¥7 year-on-year appreciation of the yen.」
The yen appreciated by ¥7 year on year, changing the foreign exchange environment affecting exports and product margins from the period of yen depreciation through the previous fiscal year. - FY2025SoftenedAnnual report
「The yen weakened to the ¥161 range against the U.S. dollar in June, its weakest level in approximately 38 years, amid the widening interest-rate differential between Japan and the United States, but then strengthened on concerns about the U.S. economy and the Bank of Japan's interest-rate hike, among other factors. The yen weakened again toward the end of the period, and the period average was ¥153, representing a ¥8 year-on-year depreciation of the yen.」
The period average reflected a weaker yen, easing the pressure on exports and product margins from the yen's previous strength, although foreign exchange movements during the period were significant. - FY2024-Q3SoftenedAnnual report
「The yen weakened against the U.S. dollar amid the widening interest-rate differential between Japan and the United States, reaching the ¥151 range in November. The period average was ¥143, representing a ¥6 year-on-year depreciation of the yen.」
The period average reflected a weaker yen year on year, easing the pressure on exports and product margins from yen strength. However, the potential impact of foreign exchange movements themselves remains. - FY2024-Q2SoftenedAnnual report
「The yen weakened against the U.S. dollar amid the widening interest-rate differential between Japan and the United States. The period average was ¥141, representing a ¥7 year-on-year depreciation of the yen.」
The yen depreciated year on year, easing the pressure on exports and product margins from yen strength during the quarter. Meanwhile, the potential impact of foreign exchange movements themselves remains. - FY2024-Q1SoftenedAnnual report
「The yen weakened against the U.S. dollar amid the widening interest-rate differential between Japan and the United States. The period average was ¥137, representing a ¥7 year-on-year depreciation of the yen.」
The yen depreciated year on year, easing the pressure on exports and product margins from the yen's previous strength under the foreign exchange conditions during the quarter. Foreign exchange movements themselves continue. - FY2023-Q3SoftenedAnnual report
「The yen weakened to the ¥150 range against the U.S. dollar in October amid the widening interest-rate differential between Japan and the United States, but then rapidly strengthened to the low ¥130 range in December following the Bank of Japan's policy revision. The period average was ¥137, representing a ¥26 year-on-year depreciation of the yen.」
The period average reflected a ¥26 year-on-year depreciation of the yen, easing the pressure on exports and product margins from the yen's previous strength. Meanwhile, the yen rapidly strengthened from the ¥150 range to the low ¥130 range during the period, and foreign exchange movements themselves continue. - FY2023-Q2SoftenedAnnual report
「The yen rapidly weakened against the U.S. dollar amid the widening interest-rate differential between Japan and the United States. The period average was ¥134, representing a ¥24 year-on-year depreciation of the yen.」
The yen depreciated by ¥24 year on year, easing the pressure on exports and product margins from the yen's previous strength under the foreign exchange conditions during the quarter. However, the potential impact of foreign exchange movements themselves remains. - FY2022WorsenedAnnual report
「For foreign-currency-denominated financial instruments held at the end of the period, the impact on profit before tax in the consolidated statements of income of a 1% appreciation or depreciation of the yen was ¥622 million and ¥1,892 million in the previous and current consolidated fiscal years, respectively.」
Foreign exchange sensitivity increased from ¥622 million to ¥1,892 million, and exposure to foreign-currency-denominated financial instruments expanded. - FY2022-Q3SoftenedAnnual report
「The yen's period-average exchange rate against the U.S. dollar was ¥111, representing a ¥5 year-on-year depreciation of the yen.」
The period average reflected a ¥5 year-on-year depreciation of the yen, easing the pressure on exports and product margins from the yen's strength that had continued from the previous fiscal year. Foreign exchange movements themselves continue. - FY2021MitigatedAnnual report
「For foreign-currency-denominated financial instruments held at the end of the period, the impact on profit before tax in the consolidated statements of income of a 1% appreciation or depreciation of the yen was ¥929 million and ¥622 million in the previous and current consolidated fiscal years, respectively.」
Foreign exchange sensitivity declined from ¥929 million to ¥622 million, and the disclosed net exposure to foreign-currency-denominated financial instruments also decreased. - FY2021-Q3WorsenedAnnual report
「The yen's period-average exchange rate against the U.S. dollar was ¥106, representing a ¥3 year-on-year appreciation of the yen.」
The year-on-year appreciation of the yen widened to ¥3 from ¥1 in the previous quarter. Pressure on exports and product margins from foreign exchange movements continues. - FY2021-Q2WorsenedAnnual report
「The yen's period-average exchange rate against the U.S. dollar was ¥107, representing a ¥2 year-on-year appreciation of the yen.」
The yen appreciated by ¥2 year on year, increasing the pressure from yen appreciation on exports and product margins from the ¥1 appreciation in the second quarter of the previous fiscal year. - FY2020-Q2RestatedAnnual report
「The yen gradually strengthened against the U.S. dollar from ¥111 at the beginning of the period, in line with the decline in long-term U.S. interest rates, ending the period at ¥108. The period average was ¥109, representing a ¥1 year-on-year appreciation of the yen.」
The period average reflected a ¥1 year-on-year appreciation of the yen, and the risk that foreign exchange movements will affect earnings continues. - FY2018RestatedAnnual report
「Our group generates income and incurs expenses from operating transactions denominated in foreign currencies, and also holds significant foreign-currency-denominated assets and liabilities. Accordingly, foreign exchange movements may affect the yen-denominated amounts of assets, liabilities, income and expenses.」
Regardless of whether the yen strengthens or weakens, the risk that foreign exchange movements will affect overseas operations, foreign-currency-denominated assets and liabilities, and earnings continues. - FY2018-Q3SoftenedAnnual report
「The yen moved within a narrow range around ¥111 against the U.S. dollar at the beginning of the period, ending at ¥113. The period average was ¥112, representing a ¥5 year-on-year depreciation of the yen.」
The period average reflected a weaker yen year on year, easing the pressure on margins from the yen's previous strength. However, foreign exchange movements themselves continue. - FY2018-Q2SoftenedAnnual report
「The yen moved within a narrow range around ¥111 against the U.S. dollar at the beginning of the period, ending at ¥113. The period average was ¥111, representing a ¥6 year-on-year depreciation of the yen.」
The period average reflected a weaker yen year on year, easing the pressure on margins from the yen's previous strength during the quarter. However, foreign exchange movements themselves continue. - FY2018-Q1RestatedAnnual report
「The yen weakened against the U.S. dollar from ¥111 at the beginning of the period, then turned stronger, ending the period at ¥112. The period average was ¥111, representing a ¥3 year-on-year depreciation of the yen.」
The period average reflected a weaker yen year on year, although the yen also turned stronger during the period. The risk that foreign exchange movements will affect earnings continues. - FY2017RestatedAnnual report
「Foreign exchange movements may affect the yen-denominated amounts of assets, liabilities, income and expenses.」
The risk that foreign exchange movements will affect overseas operations, foreign-currency-denominated assets and liabilities, and earnings continues to be disclosed. - FY2017-Q3SoftenedAnnual report
「The yen appreciated against the US dollar from ¥112 at the beginning of the period amid concerns over a slowdown in the global economy following the UK's withdrawal from the European Union (EU), but turned to depreciation following rising expectations for higher US interest rates after the US presidential election in November. The yen stood at ¥116 at the end of the period and averaged ¥107, representing a ¥15 appreciation year on year.」
Although the yen remained ¥15 stronger year on year on a period-average basis, the extent of appreciation narrowed from ¥17 in the second quarter, and the yen turned weaker at the end of the period. - FY2017-Q2WorsenedAnnual report
「The yen appreciated against the US dollar from ¥112 at the beginning of the period as concerns over an economic slowdown following the UK's withdrawal from the European Union (EU) grew and expectations for US interest rate hikes receded. The yen stood at ¥101 at the end of the period and averaged ¥105, representing a ¥17 appreciation year on year.」
The yen appreciated by ¥17 year on year, and the impact of yen appreciation has continued to expand as a factor depressing petrochemical product margins and metal product prices. - FY2017-Q1First statedAnnual report
「The yen remained within a narrow range against the US dollar from ¥112 at the beginning of the period, but appreciated in June as US employment data deteriorated and concerns grew over an economic slowdown following the UK's withdrawal from the European Union (EU). The yen stood at ¥103 at the end of the period and averaged ¥108, representing a ¥13 appreciation year on year.」
Yen appreciation has emerged as a factor weakening margins on exported products, petrochemical products and other products.