Rising Purchasing Costs and Lower Profit Margins in the Electrical Construction Materials Business
First written in FY2020-Q1. 6 of 14 entries say "Mitigated", first in FY2020-Q2. Latest entry: 2026-08-10.
The whole theme swung hardest in 2022: 64 of 103 companies on the "Worse" side.
20 other companies' latest entry also says "Mitigated".
- FY2026-H1RestatedAnnual report
「Sales of equipment investment projects related to energy conservation, labor saving, and reduced environmental impact remained strong for both public- and private-sector customers, resulting in higher sales. However, profits declined because the increase in personnel expenses and selling expenses could not be fully absorbed.」
In the electrical equipment materials business, strong sales of equipment investment projects increased revenue, but profits declined because the increase in personnel and selling expenses could not be absorbed, and the risk from rising expenses remains. - FY2025WorsenedAnnual report
「Personnel expenses, transportation costs, and selling expenses increased, resulting in lower profits.」
In the electrical equipment materials business, sales increased, but operating income decreased 1.7% year on year to ¥1,008 million because of higher personnel expenses, transportation costs, and selling expenses. - FY2024-Q3MitigatedAnnual report
「Sales, centered on deliveries for capital investment projects, progressed steadily, and despite increases in personnel and other expenses, revenue and profit increased. As a result, revenue from the electrical equipment materials business was ¥28,081 million, up 9.0% year on year, and operating profit was ¥789 million, up 1.5%.」
Although personnel expenses and other expenses increased, sales growth centered on deliveries for capital investment projects resulted in higher sales and profits, and the impact of rising costs on profits was described as having been contained. - FY2024-Q2WorsenedAnnual report
「Deliveries for capital investment projects progressed steadily, resulting in higher revenue, but increased personnel and other expenses led to lower profit.」
In the electrical equipment materials business, deliveries for capital investment projects increased sales, while higher personnel expenses and other expenses reduced profits. - FY2023-Q3RestatedAnnual report
「Net sales increased because deliveries for capital investment projects progressed steadily and 岐阜電材株式会社 was made a subsidiary. Although procurement costs rose, efforts to improve operations resulted in higher profits.」
The disclosure continues to state that, despite ongoing increases in procurement costs, efforts to improve operations resulted in higher profits in the electrical equipment materials business. - FY2023-Q1MitigatedAnnual report
「Net sales increased because deliveries for capital investment projects progressed steadily and 岐阜電材株式会社 was made a subsidiary. Although procurement costs rose, efforts to improve operations resulted in higher profits.」
Although procurement costs continued to rise, efforts to improve operations resulted in higher profits in the electrical equipment materials business. - FY2022-Q3RestatedAnnual report
「As capital investment projects began to recover, advance orders increased because of shortages of sourced components, and sales progressed steadily. Although procurement costs rose, efforts to maintain margins resulted in higher profits.」
The disclosure continues to state that, despite ongoing increases in procurement costs, efforts to maintain margins resulted in higher profits in the electrical equipment materials business. - FY2022-Q2RestatedAnnual report
「As capital investment projects began to recover, advance orders increased because of shortages of sourced components, and sales progressed steadily. Although procurement costs rose, efforts to maintain margins resulted in higher profits.」
The disclosure continues to state that, despite ongoing increases in procurement costs, efforts to maintain margins resulted in higher profits in the electrical equipment materials business. - FY2022-Q1Maintaining margins amid rising procurement costsAnnual report
「As capital investment projects began to recover, advance orders increased because of shortages of sourced components, and sales progressed steadily. Although procurement costs rose, efforts to maintain margins resulted in higher profits.」
Although procurement costs increased, efforts to maintain margins resulted in higher profits in the electrical equipment materials business. - FY2020MitigatedAnnual report
「The Electrical and Electrical Construction Materials business pursued proactive sales activities despite a decline in capital investment projects and secured sales at roughly the same level as in the same period of the previous year. It also worked to reduce procurement costs, resulting in higher profit.」
Despite the risk of lower profits from rising procurement costs and declining profit margins, full-year operating income increased 12.5% year on year through cost reductions. - FY2020-Q2MitigatedAnnual report
「Despite a decline in capital investment projects, we pursued proactive sales activities and secured sales at roughly the same level as in the same quarter of the previous year. We also worked to reduce procurement costs, resulting in higher profit.」
In the electrical equipment materials business, the Company worked to reduce procurement costs, maintaining sales at approximately the same level as in the same period of the previous year while increasing profits. - FY2020-Q1MaterialisedAnnual report
「Although sales were maintained at approximately the same level as in the same quarter of the previous year because orders for large-scale capital investment projects progressed steadily, profits declined because of higher procurement costs and lower profit margins.」
In the electrical equipment materials business, sales were maintained through orders, while higher procurement costs and lower profit margins reduced profits.