Foreign exchange fluctuation risk associated with foreign-currency-denominated transactions
First written in FY2016. 7 of 12 entries say "Materialised", first in FY2017-Q1. Latest entry: FY2026.
JFE Holdings moved to the "Worse" side of this theme in 2016, 3 years before the typical company in this theme (2019).
The whole theme swung hardest in 2019: 24 of 44 companies on the "Worse" side.
12 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「For financial instruments held by the Group at each fiscal year-end, a 1% appreciation of the Japanese yen against foreign currencies would reduce pretax profit by ¥835 million in US dollar-denominated instruments.」
The company continues to disclose its hedging policy using forward foreign-exchange contracts and other instruments, as well as the impact on pretax profit of a 1% appreciation of the yen on US dollar-denominated financial instruments. - FY2026-H1MaterialisedAnnual report
「In the steel business, although the company worked continuously to improve selling prices and reduce costs, [profit was affected] by falling steel product prices and the foreign-exchange impact of yen appreciation, compared with the previous interim consolidated accounting period, among other factors.」
The foreign-exchange impact of yen appreciation appeared in interim results as a factor reducing steel business revenue and profit, together with falling steel product prices. - FY2023MaterialisedAnnual report
「Although the company worked to improve selling prices and achieve ongoing cost reductions, segment profit amounted to ¥146.8 billion, down ¥176.9 billion from the previous consolidated fiscal year, due to higher raw material prices, foreign-exchange impacts and temporary factors reducing profit, including inventory valuation differences.」
The foreign-exchange impact appeared in actual results as a factor reducing steel business profit, together with higher raw material prices and other factors. - FY2023-Q3MaterialisedAnnual report
「In the steel business, revenue increased by ¥662.7 billion, or 29.5%, year on year to ¥2,905.9 billion, due to initiatives to improve selling prices and the effects of yen depreciation, among other factors.」
The foreign-exchange impact of yen depreciation was identified as an actual factor driving fluctuations in steel business revenue. - FY2023-Q2MaterialisedAnnual report
「Segment profit decreased by ¥10.3 billion year on year to ¥148.2 billion, as higher raw material prices and cost increases caused by the rapid depreciation of the yen outweighed efforts to improve selling prices and reduce costs.」
Rapid yen depreciation appeared in actual results as a factor reducing steel business profit through higher costs for raw materials and other items. - FY2022RestatedAnnual report
「The company conducts hedging transactions, including forward foreign-exchange contracts, as appropriate for portions of foreign-currency receipts from foreign-currency transactions, such as product export proceeds, that are not offset by foreign-currency payments, such as raw material import payments.」
The company continues to manage foreign-exchange risk and hedge it through forward foreign-exchange contracts and other measures. The effects of higher raw material costs when the yen weakens and lower domestic demand and overseas competitiveness when the yen strengthens were also identified. - FY2020-Q1MaterialisedAnnual report
「In the trading business, the company steadily captured firm domestic demand for automobiles and other products and improved selling prices. However, demand declined in the United States and other markets, resulting in revenue of ¥286.6 billion, a decline of ¥0.6 billion, or 0.2%, from the same cumulative period of the previous year on a consolidated basis. Segment profit amounted to ¥7.9 billion, a decline of ¥2.3 billion from the same cumulative period of the previous year on a consolidated basis, due to falling steel product market prices in the United States and the impact of exchange-rate fluctuations in emerging-market currencies.」
Exchange-rate fluctuations in emerging-market currencies appeared in actual results as a factor reducing trading business profit by ¥2.3 billion. - FY2018RestatedAnnual report
「The company conducts hedging transactions, including forward foreign-exchange contracts, as appropriate for portions of foreign-currency receipts from foreign-currency transactions, such as product exports, that are not offset by foreign-currency payments, such as raw material imports.」
The company reconfirmed the foreign-exchange risk arising from mismatches in foreign-currency receipts and payments and its use of hedges, including forward foreign-exchange contracts. - FY2017MaterialisedAnnual report
「Although the company worked to improve steel product prices, consolidated revenue declined from the previous consolidated fiscal year to ¥2,349.1 billion, partly due to the foreign-exchange impact of yen appreciation.」
The company stated that the foreign-exchange impact of yen appreciation contributed to the decline in revenue in the steel business. - FY2017-Q2WorsenedAnnual report
「Although the company continued to work on improving profitability, operating loss before income taxes amounted to ¥24.4 billion due in part to deterioration in the sales environment and rapid yen appreciation, a deterioration of ¥63.0 billion from the same cumulative period of the previous year on a consolidated basis.」
Rapid yen appreciation affected the earnings of the steel business, resulting in an ordinary loss of ¥24.4 billion and a ¥63.0 billion year-on-year deterioration. - FY2017-Q1MaterialisedAnnual report
「Due to inventory valuation differences resulting from deteriorating sales conditions and falling raw material prices, as well as the impact of foreign exchange fluctuations, the Company recorded an ordinary loss of ¥20.3 billion, a deterioration of ¥41.8 billion from the same period of the previous year.」
The company states that exchange-rate fluctuations affected the earnings of the steel business against a backdrop of rapid yen appreciation. - FY2016First statedAnnual report
「If foreign-currency receipts from foreign-currency transactions, such as product exports, are not fully offset by foreign-currency payments, such as raw material imports, exchange-rate fluctuations may affect the performance of the Group. The company also conducts hedging transactions, including forward foreign-exchange contracts, as appropriate.」
The company recognizes mismatches between foreign-currency receipts and payments from exports and raw material imports as foreign-exchange risk and addresses them through forward foreign-exchange contracts and other measures.