Risk of Soaring Raw Material Prices and Inability to Pass Them Through to Selling Prices
First written in FY2016. 14 of 32 entries say "Materialised", first in FY2019. Latest entry: 2026-08-07.
Okamoto Industries moved to the "Worse" side of this theme in 2022, 1 year after the typical company in this theme (2021).
The whole theme swung hardest in 2021: 18 of 28 companies on the "Worse" side.
0 other companies' latest entry also says "Advanced".
- FY2026WorsenedAnnual report
「The main factors behind the decline in profit were the impact of yen appreciation, based on the average exchange rate for the year compared with the previous fiscal year, which affected sales and operating profit by approximately ¥3 per US dollar, as well as higher prices for the flame retardant antimony, a raw material affected by China's restrictions on rare metals, and the stagnation of the Chinese economy.」
The company specifies the rise in antimony prices resulting from China's restrictions on rare metals as a factor behind higher raw material prices, and this has materialized as a factor behind the decline in profit. - FY2026-H1MaterialisedAnnual report
「The main factors behind the decline in profit were the impact of yen appreciation, equivalent to approximately ¥8 per US dollar, the continuing impact of higher prices for the flame retardant antimony, a raw material affected by China's restrictions on rare metals, and the stagnation of the Chinese economy.」
The continuing rise in antimony prices resulting from China's restrictions on rare metals is reflected in interim results as a factor behind the decline in profit. - FY2025MaterialisedAnnual report
「The sales division continued to work to optimize prices in light of higher raw material costs, while pursuing market share gains through active activities in Japan and overseas.」
Although the company advanced price optimization in response to higher raw material costs, operating profit fell 13.3% year on year, with the impact of soaring raw material prices reflected in actual results for the fiscal year. - FY2025-H1MaterialisedAnnual report
「Although sustained inflation driven by higher resource and raw material prices, as well as rising logistics and labor costs, has caused some stagnation」
Higher resource and raw material prices, logistics costs and labor costs continue to pressure the economic environment and business activities. - FY2024MaterialisedAnnual report
「However, the situation in which persistently high raw material and energy costs are pressuring earnings has continued」
While persistently high raw material and energy costs continue to pressure earnings, the company is also working to optimize prices and review procurement costs. - FY2024-Q2MaterialisedAnnual report
「Although energy prices and overall prices continued to rise」
The company states that, while energy prices and overall prices continued to rise, it implemented price revisions to address higher costs. - FY2023MaterialisedAnnual report
「In terms of profit, operating profit was ¥6,898 million, down 8.5% year on year, due to higher raw material and electricity prices.」
Higher raw material and electricity prices are reflected in actual results as factors behind the 8.5% year-on-year decline in operating profit. - FY2023-Q3MaterialisedAnnual report
「In the Industrial Products business, the company will promote the pass-through of significant increases in raw material prices and energy costs to product prices, pursue flexible and responsive production for orders involving a wider range of products and smaller lots, and improve asset efficiency by reducing inventories.」
Although the company promoted the pass-through of higher raw material prices and energy costs to product prices, persistently high raw material prices and higher fuel costs are reflected in actual results as factors behind the 21.5% decline in operating profit and other deterioration. - FY2023-Q2MaterialisedAnnual report
「Operating profit was ¥3,103 million, down 31.3% year on year, ordinary profit was ¥3,977 million, down 23.4%, and quarterly profit attributable to owners of the parent was ¥2,517 million, down 22.8%, due to higher energy and raw material prices.」
Higher energy and raw material prices are reflected in actual results as factors behind the decline in profit, including a 31.3% decrease in operating profit, and the risk materialized during the quarter. - FY2023-Q1MaterialisedAnnual report
「In terms of profit, operating profit was ¥1,812 million, down 28.4% year on year, due to a sharp rise in raw material prices.」
The sharp rise in raw material prices is reflected in actual results as a factor behind the 28.4% year-on-year decline in operating profit, and the risk of soaring raw material prices materialized during the quarter. - FY2022MaterialisedAnnual report
「In terms of profit, operating profit was ¥7,541 million, down 8.8% year on year, due to higher raw material prices.」
Higher raw material prices are reflected in actual results as a factor behind the 8.8% year-on-year decline in operating profit. - FY2020-Q3RestatedAnnual report
「During the cumulative third-quarter consolidated period, there were no material changes in matters described in this quarterly report concerning the status of the business, financial information and other matters that could materially affect investors' decisions, or in the business and other risks described in the annual securities report for the previous fiscal year.」
The company states that existing business and other risks, including the risk of profit pressure from soaring raw material prices and an inability to pass through price increases, have undergone no material changes. - FY2020-Q1MaterialisedAnnual report
「In terms of profit, operating profit was ¥2,263 million, down 21.6% year on year, due to persistently high raw material prices, increased depreciation expenses from equipment upgrades, higher logistics costs and other factors.」
Persistently high raw material prices, together with increased equipment upgrade expenses and logistics costs, are reflected in first-quarter results as factors behind the decline in operating profit. The risk has been quantified and has materialized. - FY2019MaterialisedAnnual report
「In terms of profit, operating profit was ¥8,678 million, down 14.5% year on year, due to higher raw material prices, increased depreciation expenses from equipment upgrades, higher logistics costs and other factors.」
Higher raw material prices, together with increased equipment upgrade expenses and logistics costs, are reflected in actual results as factors behind the decline in operating profit. - FY2019-Q3RestatedAnnual report
「During the cumulative third-quarter consolidated period, there were no material changes in matters described in this quarterly report concerning the status of the business, financial information and other matters that could materially affect investors' decisions, or in the business and other risks described in the annual securities report for the previous fiscal year.」
The company states that existing risks, including the risk of profit pressure from soaring raw material prices and an inability to pass through price increases, have undergone no material changes. - FY2019-Q2RestatedAnnual report
「During the cumulative second-quarter consolidated period, there were no significant changes in the matters described in the quarterly report concerning business conditions and financial information that could materially affect investors’ decisions, or in the business risks described in the securities report for the previous fiscal year.」
The company states that existing risks, including the risk of profit pressure from soaring raw material prices and an inability to pass through price increases, have undergone no material changes. - FY2019-Q1RestatedAnnual report
「During the cumulative first-quarter consolidated period, there were no material changes in matters described in this quarterly report concerning the status of the business, financial information and other matters that could materially affect investors' decisions, or in the business and other risks described in the annual securities report for the previous fiscal year.」
The company states that existing risks, including the risk of profit pressure from soaring raw material prices and an inability to pass through price increases, have undergone no material changes. - FY2018RestatedAnnual report
「Many of the Group's products are made by processing raw materials derived from commodities such as petroleum. If economic conditions continue in which higher raw material prices cannot be passed through to product prices, operating profit could come under pressure.」
The company continues to identify higher prices for raw materials derived from petroleum and other commodities, and the inability to pass through price increases, as risks to operating profit. - FY2018-Q3RestatedAnnual report
「During the cumulative third-quarter consolidated period, there were no material changes in matters described in this quarterly report concerning the status of the business, financial information and other matters that could materially affect investors' decisions, or in the business and other risks described in the annual securities report for the previous fiscal year.」
The company states that existing risks, including the risk of profit pressure from soaring raw material prices and an inability to pass through price increases, have undergone no material changes. - FY2018-Q2RestatedAnnual report
「During the cumulative second-quarter consolidated period, there were no significant changes in the matters described in the quarterly report concerning business conditions and financial information that could materially affect investors’ decisions, or in the business risks described in the securities report for the previous fiscal year.」
The company states that existing risks, including the risk of profit pressure from soaring raw material prices and an inability to pass through price increases, have undergone no material changes. - FY2018-Q1RestatedAnnual report
「During the cumulative first-quarter consolidated period, there were no material changes in matters described in this quarterly report concerning the status of the business, financial information and other matters that could materially affect investors' decisions, or in the business and other risks described in the annual securities report for the previous fiscal year.」
The company states that existing risks, including the risk of profit pressure from soaring raw material prices and an inability to pass through price increases, have undergone no material changes. - FY2017RestatedAnnual report
「Many of the Group's products are made by processing raw materials derived from commodities such as petroleum. If economic conditions continue in which higher raw material prices cannot be passed through to product prices, operating profit could come under pressure.」
The company continues to identify higher prices for raw materials derived from petroleum and other commodities, and the inability to pass through price increases, as risks to operating profit. - FY2017-Q3RestatedAnnual report
「During the cumulative third-quarter consolidated period, there were no material changes in matters described in this quarterly report concerning the status of the business, financial information and other matters that could materially affect investors' decisions, or in the business and other risks described in the annual securities report for the previous fiscal year.」
The company states that existing business and other risks, including the risk of soaring raw material prices and an inability to pass through price increases, have undergone no material changes. - FY2017-Q1RestatedAnnual report
「During the cumulative first-quarter consolidated period, there were no material changes in matters described in this quarterly report concerning the status of the business, financial information and other matters that could materially affect investors' decisions, or in the business and other risks described in the annual securities report for the previous fiscal year.」
The company states that existing risks related to raw material prices and price pass-through have undergone no material changes. - FY2016First statedAnnual report
「Many of the Group's products are made by processing raw materials derived from commodities such as petroleum. If economic conditions continue in which higher raw material prices cannot be passed through to product prices, operating profit could come under pressure.」
Raw material prices for petroleum and other commodities, and the ability to pass these costs through to selling prices, are identified as factors that could pressure profit.