Declining margins due to higher prices for other raw materials and transportation
First written in FY2019-Q2. 9 of 14 entries say "Restated". Latest entry: 2026-10-15.
JMACS Japan moved to the "Worse" side of this theme in 2022, 1 year after the typical company in this theme (2021).
The whole theme swung hardest in 2021: 19 of 29 companies on the "Worse" side.
10 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「We will continue to offer appropriate selling prices in response to higher raw-material and shipping costs.」
The company states a policy of responding to continued increases in raw-material prices and shipping costs by offering appropriate selling prices. - FY2025-Q1RestatedAnnual report
「Concerns related to higher material prices and the receipt of materials remain,」
In addition to higher material prices, concerns related to the receipt of materials continue to be cited as business-environment risks. - FY2024-Q1WorsenedAnnual report
「In the wire business, severe conditions caused by soaring material prices and higher transportation costs continued, but sales and inquiries for the instrumentation cable range remained strong. Meanwhile, commercially available products such as alarm, heat-resistant and FCPEV cables struggled, particularly because of the limited number of construction-related inquiries. As a result, revenue was ¥1,156.452 million, up 2.3% year on year, while segment profit was ¥83.225 million, down 10.2%.」
The challenging environment caused by higher material prices and freight-rate increases continues, and segment profit in the wire business is down 10.2% year on year. The impact of rising costs is reflected in profit. - FY2023-Q3RestatedAnnual report
「In the wire business, higher material prices and difficulties obtaining materials continue,」
Higher material prices and difficulty obtaining materials continue, so risks related to material costs and procurement remain. - FY2023-Q2RestatedAnnual report
「In the wire business, higher material prices and difficulties obtaining materials continue, but inquiries about custom instrumentation-cable products are strong and sales across the series performed well.」
Higher material prices and difficulty obtaining materials continue to be reported, so risks related to material costs and procurement remain. At the same time, the company explains that sales of instrumentation cables and other products are performing well. - FY2023-Q1RestatedAnnual report
「However, shortages of materials such as tin-plated soft copper wire (TA) continue, and we are focusing on ensuring smooth procurement of materials.」
The company states that shortages of materials such as tin-plated soft copper wire continue, so material procurement risk remains. It also describes measures to ensure smooth procurement. - FY2022WorsenedAnnual report
「Customers have found it difficult to procure materials such as connectors, resulting in some restraint in purchasing wire. For the company, conditions remained particularly challenging across factory-automation (FA) products as a whole.」
Difficulties procuring raw materials and components have affected operations in the form of customers holding back on wire purchases and challenging conditions for FA-related products, bringing material procurement risk into sharper focus. - FY2022-Q3WorsenedAnnual report
「In addition, supply and demand for semiconductors and electronic components remain tight, causing delays in product supply, while raw-material prices, including crude oil prices, are rising, leaving the outlook uncertain.」
Tight supply and demand for semiconductors and electronic components, delays in product supply, and rising raw-material prices, including crude oil prices, are cited as the current business environment, with risks related to material procurement and pricing intensifying. - FY2021RestatedAnnual report
「Copper, and vinyl and polyethylene, which are petroleum products, are used as materials in the group’s principal products and are heavily affected by international market conditions, which in turn have a significant impact on the group’s operating performance.」
The company continues to identify the risk of international market price fluctuations across major materials, including vinyl and polyethylene, in addition to copper. - FY2020ReframedAnnual report
「Copper, and vinyl and polyethylene, which are petroleum products, are used as materials in the group’s principal products and are heavily affected by international market conditions, which in turn have a significant impact on the group’s operating performance.」
The discussion has broadened from the historical impact of higher prices for raw materials other than copper, auxiliary materials and delivery to the risk of international market price fluctuations across major materials, including vinyl and polyethylene. - FY2019-Q3RestatedAnnual report
「Orders for key products such as fieldbus and instrumentation cables have stagnated, while margins have declined due to higher prices for raw materials, auxiliary materials and delivery,」
The company continues to identify higher prices for auxiliary materials and delivery, in addition to raw materials, as factors contributing to lower margins. - FY2019-Q2First statedAnnual report
「Margins declined due to lower sales of high-value-added products, falling copper prices, and higher prices for other raw materials and freight,」
For the first time, the company identifies higher prices for raw materials other than copper and freight as separate factors that have actually contributed to lower margins in the wire business.