Improving Selling Prices and Volumes and Developing New Customers and Products

「しかしながら、鉄スクラップ価格の上昇分を製品販売価格へ転嫁しきれなかったことなどにより」

「To promote the development of new customers for existing products, the Company will expand staffing at the Tokyo Processed Products Sales Office and strengthen its sales structure.」

「Meanwhile, although the market was characterized by stronger downward pressure on product selling prices as iron scrap, our principal raw material, remained cheaper than in the previous year, we conducted sales activities with the securing of appropriate margins in mind. We also vigorously pursued cost improvement activities in manufacturing. However, sales volumes plunged as demand for steel products remained more sluggish than expected.」

「Our Group worked to steadily secure orders for projects in its home prefecture of Niigata and expand sales of processed products, but sales volumes declined as the demand environment deteriorated substantially.」

「Against this backdrop, our Group steadily converted into orders projects in Niigata Prefecture, where demand had recovered from the previous fiscal year, and focused on expanding sales of processed products that contribute to labor savings at construction sites. In addition, we worked to maintain stable production operations and improve various cost ratios.」

「In terms of sales, labor shortages in the construction industry and surging prices for other materials led to successive delays and revisions to construction schedules, causing demand for construction steel to deteriorate more than expected. Against this backdrop, sales volumes increased for some products, but remained sluggish for many products, particularly deformed bars, the Company’s core product. On the pricing side, the Company also worked to improve selling prices, but had not yet fully passed through various cost increases.」

「Against this demand backdrop, the Company implemented various measures, including passing electricity cost increases through to prices and exporting semi-finished products. However, the operating environment became challenging as sales volumes declined due to a greater-than-expected drop in demand for construction steel, while selling prices had not yet fully reflected electricity cost increases.」

「In the industries related to our Group, the Company focused on appropriately passing electricity cost increases through to product selling prices.」

「Against this backdrop, our Group has worked to pass electricity cost increases through to product prices and reduce various cost ratios.」

「Against this backdrop, the Company focused on raising product selling prices to a price range that enables reproduction by passing through cost increases.」

「In our Group, iron scrap prices, our principal raw material, remained weak, as in the previous quarter. Meanwhile, various energy prices, including electricity and gas charges, continued to surge due to tighter supply and demand caused by the Russia-Ukraine conflict, in addition to the impact of yen depreciation. In response, we worked to pass these energy cost increases through to the selling prices of various products.」

「The Company passed through surging energy and other material costs and raised product selling prices to levels that enable reproduction, thereby expanding the metal spread, the price differential.」

「Against this backdrop, our Group has worked to pass various cost increases through to prices under new contracts while continuing activities to reduce manufacturing costs.」

「In April 2022, the Company newly established a Technical Sales Promotion Group within the Processed Products Sales Department of the Sales Division. The group will conduct technical proposal-based sales and collect customer information that may lead to new product development, promoting initiatives to expand sales of existing products and develop new products.」

「The Company worked to raise product selling prices and secure sales volumes through measures including exports of deformed bars. On the cost side, it also worked to reduce various cost ratios, but」

「Against this backdrop, our Group worked to improve product selling prices and secure product sales volumes by reducing manufacturing costs, exporting deformed bars and expanding sales of processed civil engineering products.」

「Against this backdrop, our Group is working to secure product sales volumes through lower manufacturing costs, exports of deformed bars and expanded sales of processed civil engineering products, while continuing to pass cost increases through to product selling prices.」

「For the processed-products segment, we will accurately identify customer needs and focus on developing new customers and new products. In addition, we will combine our sales capabilities with those of 株式会社コーテックス to generate synergies, while optimizing the product mix among processing plants to strengthen competitiveness on the production side.」

「Against this backdrop, our Group worked to secure product sales volumes and reduce costs. Compared with the same quarter of the previous year, net sales for the first nine months of the fiscal year amounted to ¥16,252 million, down 4.7% year on year, and ordinary profit was ¥760 million, down 25.6%, as the impact of surging prices for iron scrap, our principal raw material, and lower unit selling prices outweighed the benefit of lower prices for other materials and energy.」

「Against this backdrop, the Group worked to expand sales of processed products and further reduce costs. Although sales volumes and selling prices of material products declined from the same quarter of the previous year, lower prices for key raw materials, materials and energy, reductions in costs such as material consumption rates, and higher sales volumes of processed products resulted in revenue of ¥10,694 million, down 5.5% year on year, and ordinary profit of ¥692 million, up 65.5% year on year, for the cumulative second quarter of the current fiscal year.」

「Against this backdrop, our Group worked to secure product sales volumes and maintain selling prices, while further reducing costs. Compared with the same quarter of the previous year, prices for principal raw materials, other materials and energy declined and various cost ratios improved, but net sales for the first quarter of the fiscal year amounted to ¥5,640 million, down 1.2% year on year, due to lower product sales volumes and lower unit selling prices.」

「In the industries related to our Group, construction demand remained low and sales volumes declined. However, profit improved substantially as a result of efforts to maintain selling prices and further declines in prices for iron scrap, our principal raw material. Consequently, net sales for the first nine months of the fiscal year amounted to ¥17,052 million, down 7.7% year on year, ordinary profit was ¥1,021 million, up 524.9%, and profit attributable to owners of the parent was ¥629 million, up 644.7%.」

「Construction demand remained low and prices for iron scrap, our principal raw material, fell substantially. However, profit improved as a result of efforts to maintain selling prices against a backdrop of rising prices for other materials and energy. Consequently, net sales for the first six months of the fiscal year amounted to ¥11,322 million, down 5.5% year on year, ordinary profit was ¥418 million, up 127.3%, and profit attributable to owners of the parent was ¥281 million, up 172.1%.」

「Against this backdrop, our Group worked to secure sales volumes, maintain selling prices and further reduce costs. However, as the decline in product sales volumes was substantial, net sales for the first quarter of the fiscal year amounted to ¥5,711 million, down 7.2% year on year, ordinary profit was ¥116 million, down 8.6%, and profit attributable to owners of the parent was ¥87 million, up 23.5%.」

「In terms of sales, for deformed bars, our core product, we worked to improve selling prices and secure sales volumes amid rising iron scrap and other material prices. For civil engineering and processed products, we also worked to improve selling prices, develop new customers and develop new products.」

「Against this backdrop, as a result of efforts to improve selling prices, net sales for the first nine months of the fiscal year amounted to ¥18,477 million, up 12.7% year on year, and ordinary profit was ¥163 million, up 76.5%.」

「Against this backdrop, as a result of efforts to improve selling prices, net sales for the first six months of the fiscal year amounted to ¥11,978 million, up 13.1% year on year, ordinary profit was ¥184 million, up 63.8%, and profit attributable to owners of the parent was ¥103 million, down 78.5% year on year, due to the absence of compensation received for damages recorded as extraordinary income in the first six months of the previous fiscal year.」

「Against this backdrop, our Group was in the process of improving prices to reflect costs, and net sales for the first quarter of the fiscal year amounted to ¥6,151 million, up 13.4% year on year.」

「In terms of sales, for deformed bars, our core product, we worked to improve selling prices and secure sales volumes amid rising iron scrap and other material prices. For civil engineering and processed products, we also worked to improve selling prices, develop new customers and develop new products. As a result, consolidated net sales amounted to ¥22,197 million, up 23.1% year on year, due to improved selling prices and increased sales volumes.」

「In the industries related to our Group, we worked to improve selling prices amid a substantial increase in prices for iron scrap, our principal raw material, and other materials, but the operating environment became challenging as price improvements failed to keep pace with rising costs.」

「In the industries related to our Group, we worked to secure sales volumes and improve selling prices amid sluggish construction demand, but the operating environment remained challenging, with prices for iron scrap, our principal raw material, and auxiliary materials surging.」

「In sales, for its main product, deformed bars, the Group will gather information promptly and work to improve selling prices in line with raw-material prices and other costs and secure sales volumes. For civil engineering and processed products, it will work to develop new customers and improve selling prices by emphasizing price, while also working to develop new products.」

「Although the Group worked to improve selling prices amid sharp fluctuations in the price of steel scrap, its key raw material, the environment remained challenging because sluggish demand for steel products impeded progress in price improvements.」

「In sales, for its core product, deformed bars, the Group conducted sales activities focused on customer visits amid sluggish demand, and worked to improve selling prices and secure sales volumes. For civil engineering and processed products, it worked to expand sales of existing products and develop and expand sales of new products.」

「For its main product, deformed bars, the Group will closely monitor raw-material price trends, gather information promptly, and work to improve selling prices in line with costs and secure sales volumes. For civil engineering and processed products, it will focus on developing new customers and new products.」