Surging raw material and fuel prices
First written in FY2016. 13 of 24 entries say "Worsened", first in FY2018-Q2. Latest entry: 2026-08-04.
Sumitomo Osaka Cement 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: 122 of 167 companies on the "Worse" side.
55 other companies' latest entry also says "Worsened".
- 2026-08-04WorsenedEarnings presentation
「The cement business is expected to post lower earnings due in part to lower sales and production volumes and worsening costs caused by higher energy prices.」
The full-year earnings forecast assumes lower sales and production volumes and worsening costs due to higher energy prices. - FY2026MitigatedAnnual report
「The Ako Power Plant at the Company's Ako Plant had operated as a coal-fired power plant, mainly supplying electricity to the Company's own cement plant. Following a review in light of the planned launch of the emissions trading system (GX-ETS), among other factors, the Company retired the power plant in March 2026.」
The coal-fired power plant was retired, establishing specific measures to address costs associated with coal use and emissions regulations and exposure related to continuing the business. - 2026-05-13WorsenedEarnings presentation
「The cement business is expected to post lower earnings due in part to worsening costs caused by higher energy prices.」
The FY2026 forecast explicitly identifies worsening costs from higher energy prices in the cement business, indicating that the impact of raw material and fuel price risks is expected to intensify again. - FY2025MitigatedAnnual report
「Because coal prices may surge due to international political conditions, the Company is reducing coal consumption toward carbon neutrality and diversifying procurement to reduce geopolitical risk. It is also working to pass cost increases caused by higher coal prices through to selling prices in order to mitigate the impact on results.」
As measures against the risk of surging coal prices, the Company has specified a combination of reduced coal consumption, diversified procurement and passing higher costs through to selling prices. - FY2024MitigatedAnnual report
「Coal and heavy fuel oil prices, which had remained elevated since fiscal 2022, had shown some stabilization recently. Taking into account the effect of selling-price revisions implemented through the end of the consolidated fiscal year, the Company assessed whether impairment of property, plant and equipment in the Cement segment should be recognized and determined that no impairment loss should be recognized because total undiscounted future cash flows exceeded the carrying amount of the fixed assets.」
Coal and heavy fuel oil prices showed some stabilization after remaining elevated, and the Cement segment's earnings improved, helped by the effect of selling-price revisions. The impact of raw materials and fuel price risk has weakened from the previous fiscal year, but price trends remain a key assumption. - FY2023-Q3WorsenedAnnual report
「Although sales volumes fell below the year-earlier level, revenue increased by ¥8,491 million, or 9.0%, year on year to ¥103,104 million, due mainly to higher domestic selling prices to offset cost increases. However, due mainly to surging coal prices and other factors, the business recorded an operating loss of ¥15,271 million, a deterioration of ¥16,242 million from the year-earlier level.」
The impact of surging coal prices continued, and the Cement segment recorded an operating loss of ¥15,271 million even after domestic selling prices were raised. The impact of raw materials and fuel price risk became even more severe than in the previous quarter. - FY2023-Q2WorsenedAnnual report
「Although sales volumes fell below the year-earlier level, revenue increased by ¥3,588 million, or 5.8%, year on year to ¥65,008 million, due mainly to higher domestic selling prices to offset cost increases. However, due mainly to surging coal prices and other factors, the business recorded an operating loss of ¥11,399 million, a deterioration of ¥12,270 million from the year-earlier level.」
The impact of surging coal prices continued, and the Cement segment recorded an operating loss of ¥11,399 million. Even after domestic selling prices were raised, results deteriorated by ¥12,270 million year on year, indicating that the impact of raw materials and fuel price risk was becoming more severe. - FY2023-Q1WorsenedAnnual report
「Due mainly to improved cement selling prices, revenue increased by ¥1,177 million, or 3.9%, year on year to ¥31,101 million. However, due mainly to surging coal prices, the business recorded an operating loss of ¥5,411 million, a deterioration of ¥6,332 million from the year-earlier level.」
The impact of surging coal prices materialized during the quarter, and the Cement segment swung from operating profit in the same period of the previous year to an operating loss of ¥5,411 million. - FY2022WorsenedAnnual report
「Due to surging coal prices, among other factors, the Cement segment recorded an operating loss of ¥2,382 million, a deterioration of ¥12,055 million from the previous fiscal year.」
The impact of surging coal prices materialized over the full year, and the Cement segment swung to an operating loss. The Company also stated that the surge could persist due to the international situation surrounding Russia and Ukraine, among other factors. - FY2022-Q3WorsenedAnnual report
「Although cement sales volume exceeded the same period of the previous year, revenue fell by ¥45,519 million, or 32.5%, year on year to ¥94,612 million, due in part to the application of the revenue recognition accounting standard and related standards. Operating profit fell by ¥6,066 million, or 86.2%, to ¥970 million due to surging coal prices, among other factors.」
The impact of surging coal prices continued, and operating profit in the Cement segment fell 86.2% year on year. The decline in profit widened from the 73.7% decrease in the previous quarter. - FY2022-Q2WorsenedAnnual report
「Although cement sales volume exceeded the same period of the previous year, revenue fell by ¥27,045 million, or 30.6%, year on year to ¥61,419 million, due in part to the application of the revenue recognition accounting standard and related standards. Operating profit fell by ¥2,440 million, or 73.7%, to ¥871 million due to surging coal prices, among other factors.」
The impact of surging coal prices materialized again, and operating profit in the Cement segment fell 73.7% year on year. The impact of raw materials and fuel price risk became even more evident than in the previous quarter. - FY2022-Q1WorsenedAnnual report
「Due to surging coal prices, among other factors, operating profit fell by ¥477 million, or 34.2%, year on year to ¥920 million.」
The impact of surging coal prices materialized during the quarter, and operating profit in the Cement segment fell 34.2% year on year. The risk burden became evident again after the mitigating effect of falling prices seen in the previous fiscal year. - FY2021RestatedAnnual report
「Coal, the fuel used in cement production, may surge in price depending on future conditions. The Group is working to pass increases in procurement costs caused by higher coal prices through to selling prices in order to mitigate their impact on results.」
The Company has reaffirmed its response to the risk of surging coal prices, including mitigating the impact by passing higher costs through to selling prices. - FY2021-Q3MitigatedAnnual report
「Due mainly to domestic sales volumes falling below the year-earlier level, revenue declined by ¥2,543 million, or 1.8%, year on year to ¥140,131 million. However, operating profit increased by ¥1,383 million, or 24.5%, to ¥7,037 million, due mainly to reductions in production and other costs following the decline in coal prices.」
Coal prices declined from their period of sharp increases, and operating profit in the Cement segment rose through reductions in production costs and other measures. The impact of surging raw materials and fuel prices weakened during the quarter. - FY2020RestatedAnnual report
「Coal, the fuel used in cement production, may surge in price depending on future conditions. The Group is working to pass increases in procurement costs caused by higher coal prices through to selling prices in order to mitigate their impact on results.」
The Company has reaffirmed its response to the risk of surging coal prices, including mitigating the impact by passing higher costs through to selling prices. - FY2020-Q3MitigatedAnnual report
「Due mainly to cement sales volumes falling below the year-earlier level, revenue declined by ¥3,949 million, or 2.7%, year on year to ¥142,675 million. However, operating profit increased by ¥83 million, or 1.5%, to ¥5,653 million, due mainly to reductions in production and other costs following the decline in coal prices.」
Coal prices turned downward from their period of sharp increases, and operating profit in the Cement segment rose 1.5% year on year through reductions in production costs and other measures. The impact of surging raw materials and fuel prices weakened during the quarter. - FY2019-Q3Impact Continues; Profit Decline NarrowsAnnual report
「Due mainly to cement sales volumes exceeding the year-earlier level, revenue increased by ¥4,563 million, or 3.2%, year on year to ¥146,625 million. However, operating profit declined by ¥3,949 million, or 41.5%, to ¥5,570 million, due mainly to surging coal prices.」
The adverse impact of surging coal prices on profit in the Cement segment continued. The year-on-year decline in operating profit was 41.5%, narrowing from the 50.0% decrease in the previous quarter, although the impact remained substantial in the results. - FY2019-Q2WorsenedAnnual report
「Due mainly to cement sales volumes exceeding the year-earlier level, revenue increased by ¥625 million, or 0.7%, year on year to ¥93,249 million. However, operating profit declined by ¥2,860 million, or 50.0%, to ¥2,854 million, due mainly to surging coal prices.」
Surging coal prices continued, and operating profit in the Cement segment fell 50.0% year on year. The decline in profit widened substantially from the previous 12.7% decrease, indicating that the impact was becoming more severe. - FY2019-Q1WorsenedAnnual report
「Although revenue increased by ¥1,495 million, or 3.3%, year on year to ¥47,349 million, mainly because cement sales volume exceeded the same period of the previous year, operating profit fell by ¥1,186 million, or 45.3%, to ¥1,433 million due to surging coal prices, among other factors.」
Surging coal prices continued, and operating profit in the Cement segment fell 45.3% year on year. The decline in profit widened from the previous 8.2% decrease, indicating that the impact was becoming more severe. - FY2018-Q3WorsenedAnnual report
「Although revenue increased by ¥8,953 million, or 6.7%, year on year to ¥142,061 million, mainly because sales volume exceeded the same period of the previous year, operating profit fell by ¥1,903 million, or 16.7%, to ¥9,520 million due to surging coal prices, among other factors.」
Surging coal prices continued, and operating profit in the Cement segment fell 16.7% year on year. The decline in profit widened from the 12.7% decrease in the previous quarter, indicating that the impact of the risk was becoming more severe. - FY2018-Q2WorsenedAnnual report
「Although revenue increased by ¥7,516 million, or 8.8%, year on year to ¥92,624 million, mainly because cement sales volume exceeded the same period of the previous year, operating profit fell by ¥831 million, or 12.7%, to ¥5,714 million due to surging coal prices, among other factors.」
Surging coal prices continued, and operating profit in the Cement segment fell 12.7% year on year. The decline in profit widened from the 8.2% decrease in the previous quarter. - FY2018-Q1MaterialisedAnnual report
「Although revenue increased by ¥4,622 million, or 11.2%, year on year to ¥45,854 million, mainly because cement sales volume exceeded the same period of the previous year, operating profit fell by ¥235 million, or 8.2%, to ¥2,619 million due to surging coal prices, among other factors.」
Surging coal prices continued during the quarter and became a factor behind the 8.2% year-on-year decline in operating profit in the Cement segment. - FY2017MaterialisedAnnual report
「Although revenue increased by ¥171 million, or 0.1%, from the previous fiscal year to ¥180,326 million, mainly because sales volume exceeded the previous year, operating profit fell by ¥1,910 million, or 11.6%, to ¥14,606 million, due to higher transportation expenses and surging coal prices, among other factors.」
The previously identified possibility of surging coal prices materialized and, together with higher transportation expenses, became a factor behind the decline in operating profit in the Cement segment. - FY2016First statedAnnual report
「Coal, the primary fuel for cement production, may surge in price depending on future conditions.」
Limestone can be supplied stably from the Company's own mines, while higher coal prices have been identified as a risk that could push up production costs. The Company intends to mitigate the impact by passing higher costs through to selling prices.