Rising raw material and energy prices and stable procurement

「また、通期の連結業績予想につきましては、中東情勢の変化等が我が国の景気を下押しするリスクがあることに加え、建築資材価格が依然として高水準で推移していること等から、予定していた工事案件の遅れや中止等による売上高への影響、原材料価格の上昇等による利益への影響が懸念されます。」

「If raw material and energy prices rise, if geopolitical risks or other factors cause supply and demand to tighten and make stable procurement difficult, or if freight rates for products and goods rise because of stricter working-hour management in the logistics industry, our group's manufacturing costs could increase, affecting our group's operating results.」

「中東情勢の緊張が影響し、資材やエネルギーの価格上昇等により、当社の収益の悪化が懸念されるところであります。」

「Operating income decreased year on year because higher external construction costs and delayed price pass-through reduced gross profit, while higher transportation and personnel expenses increased selling, general and administrative expenses.」

「If raw material and energy prices rise, if geopolitical risks or other factors cause supply and demand to tighten and make stable procurement difficult, or if freight rates for products and goods rise because of stricter working-hour management in the logistics industry, our group's manufacturing costs could increase, affecting our group's operating results.」

「Price pass-through measures implemented since last year in response to soaring raw material and fuel costs have taken hold.」

「Price pass-through measures implemented since last year in response to soaring raw material and fuel costs are gradually taking hold, but they have not yet fully covered the increase in costs.」

「We raised product prices for customers and others in response to soaring raw material and energy prices that were pushing up manufacturing costs. However, earnings declined because it was difficult to raise prices under construction contracts signed before the surge in material prices and because price pass-through in the sales segment was delayed, among other factors.」

「In response to soaring raw material and fuel costs that are pushing up manufacturing costs, we raised product prices for customers and others last year and are working to establish them in the market. However, a sharp increase in raw material and fuel costs exceeding those increases is putting pressure on earnings.」

「Although we implemented product price increases for customers and others at the beginning of the current fiscal year and again this summer and are working to establish them in the market, a sharp increase in raw material and fuel costs exceeding those price increases is putting pressure on earnings.」

「For our group, demand for large-scale plant-related construction projects in the construction segment had run its course, while demand in the sales segment remained below pre-pandemic levels. Although sales demand was beginning to recover, the group was being affected by rising corporate prices, including soaring raw material and fuel costs.」

「For the fiscal year ended March 2023, infection-prevention measures were relaxed and economic and social activity was moving toward normalization, but close attention was required to downside risks from higher crude oil and raw material prices associated with the situation in Ukraine, logistics disruptions and other factors.」

「However, in addition to continuing supply-side constraints, including supply chain disruptions caused by the COVID-19 pandemic, the current situation requires attention to the downside risk to the economy from higher fuel and raw material prices.」

「In addition, suppliers are often limited because many of the raw materials procured by our group must meet high-purity requirements, creating a risk that it will become difficult to secure procurement sources.」

「If raw material and energy prices rise, or if stable procurement of these materials becomes difficult, our group's manufacturing costs could increase, affecting our group's operating results.」