Risk of Surging Raw Material and Fuel Prices
First written in FY2016. 13 of 31 entries say "Materialised", first in FY2018-Q1. Latest entry: 2026-11-12.
The whole theme swung hardest in 2022: 126 of 167 companies on the "Worse" side.
- FY2026RestatedAnnual report
「Our group procures refractory raw materials and fuels such as heavy fuel oil. From a risk management perspective, we diversify our suppliers and purchase and procure these raw materials and fuels from multiple business partners in Japan and overseas.」
The company continues to respond to raw material and fuel price risk by diversifying suppliers and using measures such as foreign exchange forward contracts. - FY2026-H1MaterialisedAnnual report
「Amid a medium- to long-term decline in domestic cement production, sales exceeded the same interim period of the previous year, partly as a result of actively developing new customers in the ceramics field. However, profit fell below the same interim period of the previous year because of higher personnel expenses and purchased material prices, as well as the impact of price competition for refractories, the mainstay products.」
Higher purchased material prices actually emerged as a factor behind the decline in profit in the refractories and ceramics business, along with higher personnel expenses and price competition. - FY2024MitigatedAnnual report
「The company will continue working to secure a stable supply of raw materials and fuel by diversifying suppliers and switching to LNG fuel, among other measures, while steadily passing on higher raw material and fuel costs to customers with their understanding.」
In response to fluctuations in raw material and fuel prices, the company explicitly identified a combination of supplier diversification, a switch to LNG and price pass-through measures. - FY2024-Q3MitigatedAnnual report
「Under these circumstances, in the refractories business, the company worked to pass on increases in raw material and fuel prices to selling prices, expand its market share and develop new markets for its mainstay cement-industry customers, despite the challenging environment in which domestic cement production had fallen below the year-earlier level for 18 consecutive months. In addition, the effects of equipment improvements and higher productivity resulted in both sales and profit exceeding the same quarter of the previous year.」
As a result of passing on increases in raw material and fuel prices, expanding market share, developing new markets, improving equipment and increasing productivity, sales and profit in the refractories business exceeded the same period of the previous year. - FY2024-Q2RestatedAnnual report
「Although the company worked to pass on increases in raw material and fuel prices to selling prices and expand its market share, sales declined slightly.」
The company continues to pass on increases in raw material and fuel prices, but sales in the refractories business declined slightly. - FY2024-Q1RestatedAnnual report
「Price increases have still not fully absorbed the increase in raw material and fuel prices, and profit was therefore below the same quarter of the previous year.」
The pass-through of increases in raw material and fuel prices has not kept pace, and the situation continues to weigh on profit in the refractories business. - FY2023WorsenedAnnual report
「Although the company worked to pass higher raw material and fuel costs through to selling prices and reduce costs in various ways while domestic cement production remained below the prior-year level for the eighth consecutive month, the pass-through continued to lag behind the surge in raw material and fuel prices. Revenue exceeded the prior fiscal year, but profit was below the prior fiscal year.」
Surging raw material and fuel prices and delays in passing them through to selling prices continued throughout the fiscal year, and segment profit in the refractory business was ¥141 million, down 25.3% from the prior fiscal year. - FY2023-Q3RestatedAnnual report
「Although the company worked to pass higher raw material and fuel costs through to selling prices and reduce costs, selling price increases still failed to keep pace with the rise in raw material and fuel prices. As a result, sales increased slightly while profit fell substantially below the same quarter of the previous year.」
The impact of surging raw material and fuel prices and the continuing inability to pass the increases through to selling prices are substantially depressing profit in the refractory business. - FY2023-Q2WorsenedAnnual report
「Although the company worked to pass higher raw material and fuel costs through to selling prices and reduce costs in various ways, the pass-through did not keep pace with the surge in raw material and fuel prices. Revenue declined slightly year on year, while profit was substantially below the same quarter of the prior year.」
The pass-through of higher raw material and fuel costs to selling prices failed to keep pace, making the impact of the raw material and fuel price risk increasingly clear, including a 65.6% year-on-year decline in segment profit in the refractory business. - FY2023-Q1MaterialisedAnnual report
「Revenue and profit were both below the same quarter of the prior year due to the impact of surging raw material and fuel prices and intensified price competition.」
Higher raw material and fuel prices, together with intensified price competition, actually became factors behind lower revenue and profit in the refractory business. - FY2022MaterialisedAnnual report
「Operating profit was ¥864 million, down 25.3% year on year, due to surging raw material and fuel prices, intensified price competition and other factors.」
Higher raw material and fuel prices, together with intensified price competition, actually became factors behind the decline in company-wide operating profit. - FY2022-Q3MaterialisedAnnual report
「Under these circumstances, domestic cement production declined for the second consecutive month. Sales in the refractories business exceeded the same quarter of the previous year, partly due to the effects of acquiring new customers, but profit fell significantly below the same quarter of the previous year due to higher raw material and fuel prices and intensifying price competition.」
Higher raw material and fuel prices actually became a factor depressing profit in the refractory business. - FY2021MitigatedAnnual report
「The Group diversifies its sources of raw materials and fuel and purchases them from multiple suppliers in Japan and overseas, including from a risk-management perspective. For overseas purchases, it seeks to mitigate risk through forward exchange contracts and other measures while taking foreign-exchange trends into account, but it may be affected by fluctuations in exchange rates.」
The company continues to address raw material and fuel prices and foreign-exchange fluctuations by diversifying its suppliers and using forward exchange contracts. - FY2020MitigatedAnnual report
「The Group diversifies its sources of raw materials and fuel by purchasing them from multiple suppliers in Japan and overseas, including from a risk-management perspective. For overseas purchases, it seeks to mitigate risk through forward exchange contracts and other measures while taking foreign-exchange trends into account, but it may be affected by fluctuations in exchange rates.」
To address the risk of surging raw material and fuel prices, the company explicitly identifies diversifying procurement among multiple domestic and overseas suppliers and using forward exchange contracts and other measures. The risk of price surges itself remains. - FY2020-Q3MaterialisedAnnual report
「Under these conditions, revenue and profit in the refractory business, focused mainly on refractories for the cement industry, both declined as manufacturing costs rose due to persistently high prices for some raw materials and higher depreciation and amortization associated with increased capital investment, while domestic cement production remained below the prior-year level.」
Persistently high prices for some raw materials actually became factors behind lower revenue and profit in the refractory business through their impact on manufacturing costs. - FY2020-Q2MaterialisedAnnual report
「Profit declined due to higher manufacturing costs resulting from persistently high raw material prices and increased depreciation and amortization associated with expanded capital investment, among other factors.」
Persistently high raw material prices actually became a factor behind lower profit in the refractory business through their impact on manufacturing costs. - FY2020-Q1MaterialisedAnnual report
「Although sales increased as a result of the partial pass-through of higher raw material costs to selling prices and a focus on developing new customers and markets, profit declined because manufacturing costs rose due to persistently high raw material prices and other factors, and sales of high-value-added products declined.」
Higher manufacturing costs resulting from persistently high raw material prices actually became a factor behind lower profit in the refractory business. - FY2019-Q3RestatedAnnual report
「In the refractories business, sales and profit both exceeded the same quarter of the previous year, as the company actively developed new customers, expanded sales, passed through part of the increase in raw material prices, and captured demand for kiln furniture associated with plant equipment sales.」
The company explains that the partial pass-through of higher raw material costs to selling prices has continued to take hold, and that it continues to address higher raw material costs. - FY2019-Q2RestatedAnnual report
「In the refractories business, sales and profit both exceeded the same quarter of the previous year, as the company actively developed new customers, passed through part of the increase in raw material prices, and captured demand for kiln furniture associated with plant equipment sales.」
The company explains that the partial pass-through of higher raw material costs to selling prices has continued to take hold, and that it continues to address higher raw material costs. - FY2019-Q1MitigatedAnnual report
「Revenue in the refractory business increased as a result of active efforts to develop new customers, the increasing penetration of partial pass-through of higher raw material costs to selling prices, and the capture of demand for kiln furniture associated with plant-equipment sales.」
The company explains that partial pass-through of higher raw material costs to selling prices has taken hold, and that it has made progress in addressing the impact. - FY2018MaterialisedAnnual report
「Under these conditions, domestic cement sales volumes were broadly in line with the prior year in the refractory business focused mainly on refractories for the cement industry. Despite the impact of a substantial surge in raw material costs stemming from tighter environmental regulations in China, revenue and profit both increased as a result of efforts to improve productivity, reduce costs, develop new customers and markets, and, in addition, pass higher costs through to selling prices to a certain extent.」
Although the substantial surge in raw material costs actually affected the year's results, the company explains that it absorbed the impact through productivity improvements, cost reductions, customer development and the pass-through of higher costs to selling prices. - FY2018-Q3WorsenedAnnual report
「The company reported results below the same quarter of the prior year, partly due to higher raw material costs stemming from tighter environmental regulations in China and higher fuel costs resulting from rising crude oil prices.」
In addition to higher raw material prices, higher fuel costs resulting from rising crude oil prices became evident and reduced profit in the refractory business despite efforts to cut costs and improve productivity. - FY2018-Q2WorsenedAnnual report
「Although the company worked to reduce costs through productivity improvements and other measures, profit was below the same quarter of the prior year, partly due to a sharp increase in raw material costs stemming from tighter environmental regulations in China.」
The previously identified risk of rising raw material prices materialized as a sharp increase in raw material costs stemming from tighter environmental regulations in China, reducing profit in the refractory business despite cost-cutting efforts. - FY2018-Q1MaterialisedAnnual report
「Although the company worked to improve productivity and reduce costs, the refractory business reported lower revenue and profit than in the same quarter of the prior year, partly due to higher raw material costs.」
Of the previously identified risk of surging raw material and fuel prices, higher raw material costs materialized as a factor behind lower revenue and profit in the refractory business. - FY2017RestatedAnnual report
「If the prices of raw materials and fuel procured to manufacture the Group's products surge, remain elevated or rise further, this could affect the Group's performance.」
The company continues to identify the possibility that surging raw material and fuel prices could affect performance as a risk. - FY2016First statedAnnual report
「If the prices of raw materials and fuel procured to manufacture the Group's products surge, remain elevated or rise further, this could affect the Group's performance.」
While the substantial decline in fuel prices during the period contributed to securing profit in the refractory business, the company identifies future price surges as a risk.