Fluctuations in Raw Material and Fuel Prices, Including Copper and Aluminum

「For the full-year consolidated results for the fiscal year ending March 2026, operating income exceeded the previous forecast due to higher sales of data center-related products and other offerings in the Information and Communications Solutions business, higher sales of functional wires and power transmission and distribution components in the Energy Infrastructure business, appropriate pricing in the Automotive Components business, and a recovery in earnings in the Electrical and Electronic Materials business resulting from stable copper prices.」

「The Electrical and Electronics Materials business reported lower profit due to the effects of foreign exchange rates and copper prices.」

「For the fiscal year, group-wide sales increased due to higher revenue from automotive parts such as wire harnesses in the Electrical and Electronics business, higher revenue from data center-related products in the Functional Products business, and the effects of fluctuations in copper cathode prices and foreign exchange rates.」

「In terms of profit and loss, profit declined due to lower sales and higher raw material and fuel prices, despite efforts to normalize selling prices and other measures.」

「The Automotive Parts business reported higher profit despite factors reducing profit, including product warranty costs, higher raw material and fuel prices, increased depreciation and research and development expenses, and sluggish sales to Japanese OEMs in the Chinese market. The increase was due to higher vehicle production volumes and improvement effects, including productivity gains from more stable customer production plans, reductions in air costs, and the normalization of selling prices.」

「Although the automotive parts business faced profit headwinds from higher raw material and fuel prices, product warranty costs and weak demand from Japanese OEMs in the Chinese market, profit increased due to higher vehicle production and improvement measures, including productivity improvements and lower air freight costs resulting from stable customer production plans and appropriate sales price adjustments.」

「Profit declined due to higher raw material and fuel prices.」

「In terms of profit and loss, despite higher raw material and fuel prices, profit increased due to progress in normalizing selling prices through price pass-through and the weaker yen.」

「The company group, comprising the company, its consolidated subsidiaries and equity-method affiliates, reported higher revenue for the cumulative third quarter of the fiscal year, due to foreign exchange effects, higher copper benchmark prices and growth mainly in the automotive parts and battery businesses. Consolidated operating profit increased despite higher raw material and fuel prices, higher logistics costs and a higher cost ratio, due to progress in price pass-through, foreign exchange effects from the weaker yen and the elimination of one-off factors from the previous fiscal year.」

「The company group, comprising the company, its consolidated subsidiaries and equity-method affiliates, reported higher revenue for the cumulative second quarter of the fiscal year, due to foreign exchange effects, higher copper benchmark prices and growth mainly in the automotive parts and battery businesses. However, consolidated operating profit declined due to higher raw material and fuel prices across the company and production cuts by customers in the automotive parts and battery businesses.」

「Despite higher raw material and logistics costs, price pass-through progressed and data center-related products remained firm,」

「Despite higher raw material prices and transportation costs, performance improved year on year, although the improvement remained limited.」

「The company was affected by lower sales of fiber bare cores to North American customers, raw material shortages, and higher raw material prices and transportation costs.」

「Profit was sluggish due to the effects of raw material shortages, higher raw material prices and transportation costs, a temporary decline in fiber bare-core sales volumes to North American customers, and customer inventory adjustments for digital coherent products.」

「・Passing through market-based metal prices to product selling prices ・Hedging through futures transactions ・Cost reductions and energy conservation in production activities ・Diversifying price fluctuation risk through multiple sourcing」

「Product selling prices generally consist of the metal price plus an amount equivalent to the processing fee. Metal prices fluctuate to reflect market conditions in accordance with rules agreed in advance with customers, so the company believes that price changes can generally be passed through even when market prices fluctuate. The company also uses hedging through futures transactions and other measures to minimize the impact of price fluctuations.」

「Cash flow from operating activities was affected by deterioration in working capital due to higher sales and rising copper prices, although」

「Regarding performance for the fiscal year, group-wide revenue decreased due to the stronger yen and lower copper cathode prices, but」

「Although the Copper Strip and High-Performance Materials business incurred temporary cost increases, segment revenue was ¥215.2 billion, down 10.5% year on year, and operating profit was ¥3.3 billion, up 9.7%, due to increased demand in the automotive parts business and cost improvements resulting from lower lead prices in the battery business.」

「Revenue in the Energy & Industrial Equipment and Metals segments decreased due in part to lower copper cathode prices.」