Delays in Passing Cost Increases Through to Prices
First written in FY2023-Q1. 8 of 12 entries say "Mitigated", first in FY2023. Latest entry: 2026-07-31.
The whole theme swung hardest in 2021: 18 of 28 companies on the "Worse" side.
12 other companies' latest entry also says "Mitigated".
- 2026-07-31MitigatedEarnings
「We have focused on securing earnings by strengthening sales activities, including proposals for high-value-added products and services and appropriate price revisions, while pursuing further cost reductions.」
The company continues to combine higher value-added offerings, price revisions and cost reductions to secure earnings amid rising costs. - FY2026MitigatedAnnual report
「Cost of sales was ¥12,070 million, an increase of ¥824 million, or 7.3% year on year, from the previous consolidated fiscal year. However, the cost-of-sales ratio declined by 0.9 percentage points, from 71.6% in the previous consolidated fiscal year to 70.7% in the current fiscal year. This was mainly because, although imported ore prices and various raw material prices remained elevated from the previous consolidated fiscal year, price revisions progressed mainly in the Bentonite and Agriculture businesses.」
Although imported ore and raw material prices remained elevated, progress in price revisions reduced the cost-of-sales ratio from 71.6% to 70.7%, partially mitigating the earnings impact of delayed cost pass-through. - 2026-05-08MitigatedEarnings
「We have focused on securing earnings by strengthening sales activities, including proposals for high-value-added products and services and appropriate price revisions, while pursuing further cost reductions.」
The company continues to address delays in passing on price increases and rising costs through higher-value-added proposals, price revisions and cost reductions. Operating profit increased 25.1% year on year. - FY2026-H1MitigatedAnnual report
「In the Fabricated Materials field, although the impact of production cuts by major customers, mainly in the construction machinery and truck sectors, continued from the previous fiscal year, revenue increased partly due to the effects of price revisions.」
While production cuts by major customers continued to weigh on results, the Fabricated Materials field reported higher revenue due to the effects of price revisions, partially mitigating the impact of delayed cost pass-through. - FY2025-H1MitigatedAnnual report
「Under these circumstances, our group has focused on securing earnings by strengthening sales activities, including proposals for high-value-added products and services and appropriate price revisions, while pursuing further cost reductions.」
To address rising costs and delayed cost pass-through, the company has strengthened proposals for higher-value-added products and services, price revisions and cost reductions. In the Clay Science business, the effects of these price revisions appeared as increases in both revenue and profit. - FY2024MitigatedAnnual report
「In the Clay Science business, demand for Kunipia for export for general industrial applications in the fine chemicals field declined, but revenue increased slightly from the second half onward as price revisions progressed. In terms of profit, profit declined substantially due to higher manufacturing costs.」
Although the effects of lower demand and higher costs remained, revenue increased slightly as price revisions from the second half onward took effect, with some benefit from cost pass-through becoming apparent. - FY2024-Q3RestatedAnnual report
「Cost increases resulting from the continued depreciation of the yen, advancing inflation and persistently high energy prices remain a concern, and the challenging environment is expected to continue. To achieve the targets of the medium-term management plan, we will continue working to improve earnings through agile pricing strategies, cost reductions and higher value added in our products and services.」
With concerns over rising costs continuing, the company has indicated its policy of continuing to improve earnings through agile pricing strategies, cost reductions and higher value added. - FY2024-Q1MitigatedAnnual report
「In terms of profit, while we raised wage levels through base-pay increases in response to recent inflation, we also focused on reviewing selling prices and shifting to higher-value-added projects. As a result, operating profit was ¥154 million, compared with an operating loss of ¥10 million in the same period of the previous year.」
Amid surging prices, the company reviewed selling prices and shifted to higher-value-added projects, improving operating profit from a ¥10 million loss in the same period of the previous year to ¥154 million. The impact of passing through higher costs and responding on the earnings front was partially mitigated. - FY2023MitigatedAnnual report
「In terms of profit, the sharp depreciation of the yen led to higher imported ore prices, while various raw material prices also surged, resulting in a substantial decline in profit for the full year. However, improvement was seen from the second half onward as price increases progressed.」
The delay in passing through rising costs resulted in a substantial full-year decline in profit, but price increases progressed from the second half onward, partially improving the impact. - FY2023-Q3RestatedAnnual report
「However, the rise in imported crude ore prices caused by the sharp depreciation of the yen and the surge in prices of various raw materials outpaced the Company's ability to pass through costs, resulting in a substantial decline in earnings.」
The inability to pass through increases in imported ore and various raw material prices continued, continuing to result in a substantial decline in profit. - FY2023-Q2MaterialisedAnnual report
「However, the rise in imported crude ore prices caused by the sharp depreciation of the yen and the surge in prices of various raw materials outpaced the Company's ability to pass through costs, resulting in a substantial decline in earnings.」
The inability to pass through increases in imported ore and various raw material prices persisted and materialized as a substantial decline in profit. - FY2023-Q1First statedAnnual report
「However, particularly in demand for castings, mainly for the domestic automotive industry, price increases for imported ore caused by the rapid depreciation of the yen and higher fuel costs due to surging crude oil prices had outpaced the ability to pass costs through to customers.」
The inability to pass through increases in imported ore prices and fuel costs was identified explicitly as a standalone risk for the first time.