Risk of Rising Market Prices for Cement, Steel, LNG and Other Materials
First written in FY2017. 8 of 19 entries say "Worsened", first in FY2022-Q1. Latest entry: FY2027-H1.
Toyo Asano Foundation moved to the "Worse" side of this theme in 2021, the same year as the typical company in this theme.
The whole theme swung hardest in 2022: 121 of 167 companies on the "Worse" side.
54 other companies' latest entry also says "Worsened".
- FY2027-H1WorsenedAnnual report
「Profit and loss were affected by sluggish demand and intensifying price competition in the company's main market, as well as rising raw material prices resulting from the situation in the Middle East. As a result, net sales for the cumulative consolidated second quarter period under review were ¥6,186 million, down 13.6% from the previous interim consolidated accounting period, and operating income was ¥296 million, down 60.9%.」
The rise in raw material prices resulting from the situation in the Middle East was reflected in the results as a factor behind the decline in operating income, together with sluggish demand and price competition. - FY2026RestatedAnnual report
「Our group procures cement, steel products, LNG and other materials as key raw materials. However, the prices of these materials and energy fluctuate significantly under the influence of market prices.」
Continued disclosure identifies the risk that fluctuations in the market prices of cement, steel products, LNG and other materials may affect performance. - FY2025RestatedAnnual report
「Our group procures cement, steel products, LNG and other materials as key raw materials. However, the prices of these materials and energy fluctuate significantly under the influence of market prices.」
Continued disclosure identifies fluctuations in the market prices of cement, steel products, LNG and other materials, and their potential impact on performance, as risks. - FY2025-H1WorsenedAnnual report
「Affected by the 2024 issue, labor shortages, soaring raw material prices and other factors, the construction market faced extremely strong supply constraints, and the volume environment remained extremely challenging.」
Soaring raw-material prices are cited, alongside labor shortages and the 2024 problem, as a factor intensifying supply constraints in the construction market, and the quantitative environment is described as extremely challenging. - FY2024ReframedAnnual report
「For fiscal 2024, we anticipate that costs are highly likely to rise again due to increases in freight rates and raw-material prices against the backdrop of restrictions on long working hours, labor shortages and other factors.」
The explanation has changed from the previous disclosure that raw-material price increases were expected to continue to an explanation that, although cost inflation appeared to peak in fiscal 2023, freight rates and raw-material prices are highly likely to rise again in fiscal 2024 against the backdrop of restrictions on long working hours and labor shortages. - FY2024-Q1RestatedAnnual report
「The outlook remained uncertain due to the prolonged situation in Ukraine and soaring raw-material and energy prices.」
Soaring raw-material and energy prices continue to be cited as a factor weighing on the business environment. Meanwhile, the disclosure also cites improved profitability in the core business through cost reductions and other measures. - FY2023-Q3MitigatedAnnual report
「The business environment remained extremely challenging, and raw-material prices had also risen sharply. However, as a result of thorough cost management, net sales for the cumulative consolidated third quarter amounted to ¥1,424 million, down 0.3% year on year, while operating profit was ¥27 million, compared with a ¥5 million loss in the same period of the previous year.」
Although raw-material prices remain elevated, thorough cost management improved operating profit in the concrete segment from a loss in the same period of the previous year to ¥27 million of profit. The disclosure states that the impact of price increases on performance was mitigated to a certain extent. - FY2023-Q2RestatedAnnual report
「The business environment was extremely challenging and raw material prices had also been soaring, but the company’s implementation of thorough cost control produced results.」
The risk of continued raw-material price increases remains disclosed. Meanwhile, the company explains that the concrete segment secured operating profit this quarter through cost management. - FY2022WorsenedAnnual report
「The surge in raw material prices is a concern as a major factor exerting downward pressure on profits, with the growth rate of Japan’s corporate goods price index reaching its highest level in 40 years.」
The surge in raw material prices is linked to the corporate goods price index reaching a 40-year high, and its impact on earnings has materialized, with operating profit in the secondary concrete products business falling 24.8% year on year. - FY2022-Q3WorsenedAnnual report
「As the prices of market-sensitive raw materials rose beyond the initial assumption and labor costs, manufacturing expenses and other costs increased substantially to cope with the exceptionally busy period, revenue for the first nine months of the current consolidated fiscal year was ¥6,466 million, up 14.7% year on year, while operating profit was ¥192 million, down 21.3%.」
The company states that raw material prices rose beyond the initial assumption and, together with higher labor costs and manufacturing expenses, reduced operating profit by 21.3% year on year. - FY2022-Q2WorsenedAnnual report
「Under these circumstances, we conducted active sales activities, but as a result of the impact of soaring raw material prices, revenue for the cumulative second quarter of the fiscal year was ¥3,545 million, up 7.0% year on year, while operating profit was ¥7 million, down 94.2%.」
The company states that soaring raw material prices reduced profit in the concrete pile division, causing operating profit to fall 94.2% year on year. - FY2022-Q1WorsenedAnnual report
「Meanwhile, raw material prices have been rising, partly due to the effects of the global economic recovery, and steel prices in particular have surged. With the domestic economy’s recovery lacking momentum, the surge in raw material prices is expected to exert significant downward pressure on profitability.」
The rising trend in raw material prices, particularly the surge in steel prices, is described as the actual business environment and explicitly identified as downward pressure on profitability, indicating that the risk of higher prices has materialized and intensified. - FY2021RestatedAnnual report
「The Group closely monitors fluctuations in market prices and works daily to reduce procurement prices through dialogue with suppliers and other means, but increases in market prices beyond the company’s control could affect the Group’s results.」
The company continues to describe the risk of higher raw material and energy prices and specifies its response of reducing procurement prices through dialogue with suppliers. - FY2020RestatedAnnual report
「The Group procures cement, steel products, LNG and other materials, and these materials and energy products are significantly affected by market prices. The Group closely monitors market prices and works to reduce procurement prices, but increases in market prices beyond expectations could affect the Group.」
The company continues to describe the risk that higher market prices for cement, steel products, LNG and other materials could affect procurement prices and results. - FY2019RestatedAnnual report
「The Group procures cement, steel products, LNG and other materials, and these materials and energy products are significantly affected by market prices. The Group closely monitors market prices and works to reduce procurement costs, but increases in market prices beyond expectations could affect the Group.」
The company continues to describe the risk that higher market prices for cement, steel products, LNG and other materials could affect results through procurement costs. - FY2018MaterialisedAnnual report
「In the concrete pile and construction businesses, costs are expected to increase, including higher raw material costs, as in the previous fiscal year, and additional hiring to alleviate labor shortages.」
Higher raw material costs are identified as an actual factor behind cost increases, indicating that the risk of higher market prices has partly materialized. - FY2017First statedAnnual report
「The Group procures cement, steel products, LNG and other materials, and these materials and energy products are significantly affected by market prices. The Group closely monitors market prices and works to reduce procurement costs, but increases in market prices beyond expectations could affect the Group.」
The company identifies the possibility that higher market prices for materials and energy could affect results through procurement costs as a separate risk.