Higher manufacturing costs driven by surging energy resource prices
First written in FY2022. 3 of 9 entries say "Worsened", first in FY2023. Latest entry: FY2025-H1.
The whole theme swung hardest in 2022: 122 of 167 companies on the "Worse" side.
34 other companies' latest entry also says "Mitigated".
- FY2025-H1MitigatedAnnual report
「Electricity and other material costs remained high during the fiscal year, although they declined from the previous fiscal year's level.」
Although the risk of higher electricity and other material costs remains, costs declined year on year, partially mitigating the downward impact on costs and earnings in the Smelting business. - FY2024WorsenedAnnual report
「Higher electricity and auxiliary raw material costs, including coke, have created a high-cost business structure and significantly worsened profitability.」
Higher energy resource prices have continued to expand the Smelting business's high-cost structure and deteriorating earnings. - FY2024-Q2RestatedAnnual report
「In addition to the continued increase in electricity costs and prices of various materials from the previous fiscal year,」
Higher energy and other material costs continue to increase processing costs and reduce profit in the Smelting business. - FY2024-Q1WorsenedAnnual report
「The Smelting business incurred a loss due to lower free-metal revenue resulting from weak zinc prices and the recognition of an inventory valuation loss, among other factors.」
Amid continued high energy and other material costs, weak zinc prices and inventory valuation losses also contributed to an ordinary loss in the Smelting business. - FY2023WorsenedAnnual report
「In terms of profit and loss, the Smelting business recorded a ¥3.6 billion decrease in profit, largely due to the impact of higher energy and other material costs.」
Higher energy and other material costs actually affected annual results through a ¥3.6 billion decrease in profit in the Smelting business, increasing the risk of deterioration in manufacturing costs. - FY2023-Q3MaterialisedAnnual report
「In terms of profit and loss, profit declined year on year, mainly because higher energy and other material costs in the Smelting business substantially increased costs, compounded by lower production in the Resources business.」
Higher energy and other material costs actually affected results through higher costs in the Smelting business and a 22% decrease in operating profit. - FY2023-Q2RestatedAnnual report
「In terms of profit and loss, profit declined year on year as the Resources business was affected by lower ore grades, while the Smelting business recorded higher energy and other material costs and an inventory valuation loss under the lower-of-cost-or-market method at the fiscal year-end due to falling market prices.」
Higher energy and other material costs continued to materialize as factors worsening processing costs and reducing profit in the Smelting business. - FY2023-Q1MaterialisedAnnual report
「The Smelting Business reported lower profit year on year due to soaring energy and other material costs and the recognition of a year-end lower-of-cost-or-market valuation loss caused by falling market prices.」
Higher energy and other material costs emerged as an actual factor reducing profit in the smelting business and affected manufacturing costs and profitability. - FY2022First statedAnnual report
「Electricity and coke prices are significantly affected by energy resource prices such as crude oil, LNG and coal. A substantial deterioration in those prices could significantly worsen manufacturing costs and affect the operating results and financial position of the Group.」
Energy resource prices were identified explicitly as an independent market risk for the first time, with the company explaining that higher electricity and coke costs had actually put upward pressure on manufacturing costs during the fiscal year.