Higher Cement and Energy Prices

「中東情勢の緊迫化に伴う原油価格の高止まりやナフサの供給制約により石油化学系資材の調達リスクが高まったこと等から先行き不透明な状況で推移しました。」

「During the fiscal year, raw material prices rose consistently, while labor costs increased due to base-pay increases and higher outsourcing costs. As a result, manufacturing costs increased by ¥200 million year on year, but the company vigorously promoted improvement activities under NNPS (Nozawa New Production System), achieved reductions in raw material and energy consumption, and limited the increase in costs to ¥60 million.」

「During the fiscal year, raw material prices rose consistently, while electricity and gas prices also turned upward again in the second half. Rising raw material and energy prices increased costs by ¥320 million.」

「During the first nine months of the consolidated fiscal year under review, the economy showed a moderate recovery against the backdrop of normalized socioeconomic activity. However, the outlook remained uncertain amid rising uncertainty in the global economy due to the invasion of Ukraine and escalating tensions in the Middle East. In the building materials industry, a challenging business environment continued, including persistently high raw material and energy prices resulting from unstable international conditions and the accelerating depreciation of the yen, and conditions remained without room for complacency.」

「In the building materials industry, the operating environment remains challenging due to continued high raw material and energy prices against a backdrop of rising prices.」

「In the building materials industry, there are no signs that the surge in prices of raw materials used in manufacturing is abating, and the business environment remains uncertain.」

「However, raw material and energy prices rose at an extraordinary pace. Compared with the previous fiscal year, prices rose by an average of 15% for raw materials, 63% for gas and 55% for electricity, resulting in a ¥950 million decline in profit.」

「During the nine-month period ended [date], the Japanese economy showed signs of a gradual recovery, although the end of the COVID-19 pandemic remained unforeseeable. At the same time, rising resource prices and supply constraints had an increasing impact, and the economy proceeded amid concerns about downside risks. In the building materials industry, the operating environment also remained challenging due to higher raw material and energy prices resulting from the global surge in resource prices.」

「In the building materials industry, rising resource prices have led to successive increases in raw material procurement prices and electricity and gas prices, and the operating environment remains challenging.」

「In the building materials industry, construction order trends have also lacked stability, while the impact of soaring raw material and material prices stemming from COVID-19 has been increasing day by day, and challenging conditions continue without room for complacency.」

「In terms of earnings, in addition to the decline in net sales noted above, operating income was ¥893 million, down 56.7% year on year, and ordinary income was ¥907 million, down 56.2%, due to continued increases in logistics and other costs from the previous year, as well as higher personnel expenses.」

「In addition to the decline in revenue described above, continuing increases in logistics costs and other expenses from the previous year and higher labor costs resulted in operating income of ¥367 million, down 73.7% year on year, and ordinary income of ¥379 million, down 73.0%.」

「Due to soaring raw material prices, logistics costs and labor costs, operating income was ¥2,326 million, down ¥365 million from the previous fiscal year, and ordinary income was ¥2,313 million, down ¥403 million.」

「Although revenue increased, higher raw material, logistics and labor costs resulted in operating income of ¥2,064 million, down 5.2% year on year, and ordinary income of ¥2,071 million, down 5.9%.」

「Although sales of the company’s core extruded cement products increased, operating income fell 4.6% year on year to ¥1,397 million, ordinary income fell 4.8% to ¥1,408 million, and quarterly net income attributable to owners of the parent fell 5.7% to ¥943 million, due to increases in raw material, logistics and labor costs.」

「Although raw material, logistics and labor costs increased, growth in the core extruded cement products business resulted in operating income of ¥701 million, down 1.8% year on year, ordinary income of ¥724 million, up 0.3%, and net income attributable to owners of the parent of ¥498 million, up 3.3%.」

「Despite sluggish construction activity, rising raw material prices and higher logistics and labor costs, operating income was ¥2,691 million, down 18.8% year on year, and ordinary income was ¥2,716 million, down 16.9%.」

「In terms of earnings, although the company worked to reduce manufacturing costs and expenses, sluggish construction revenue and higher raw material prices resulted in operating profit of ¥2.176 billion, down 17.6% year on year, ordinary profit of ¥2.2 billion, down 13.9%, and quarterly net income attributable to owners of the parent of ¥1.512 billion, down 12.1%.」

「Cement is the main raw material used in our products, while natural gas, kerosene, lubricants and other materials are used in the manufacturing process. Trends in raw material and energy prices may affect the performance of our group.」

「Trends in raw material and energy prices may affect the performance of our group.」