Impact of lower copper prices on the wire and cable business
First written in FY2017-Q1. 6 of 13 entries say "Restated". Latest entry: FY2025.
JMACS Japan moved to the "Worse" side of this theme in 2016, 2 years before the typical company in this theme (2018).
The whole theme swung hardest in 2018: 12 of 22 companies on the "Worse" side.
4 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「Copper and petroleum products such as vinyl and polyethylene, which are used as materials in our principal products, are heavily affected by international market conditions, and our operating results are significantly affected as a result.」
The disclosure continues to identify the risk that fluctuations in international market conditions for copper, vinyl, polyethylene and other material prices will affect operating results. - FY2023-Q2RestatedAnnual report
「Despite surging copper and other raw material prices, segment profit was ¥199.475 million, up 19.2% year on year.」
As in the previous quarter, the disclosure describes copper prices affecting the performance of the electric wire business during a period of surging prices. This time, it explains that segment profit rose 19.2% year on year despite higher copper and other raw material prices. - FY2022-Q2RestatedAnnual report
「In the wire business, orders began to recover gradually from the decline accompanying the spread of the novel coronavirus, resulting in revenue of ¥2,044.287 million and segment profit of ¥167.316 million, also supported by higher copper prices.」
The disclosure continues to describe the impact of surging copper prices on revenue and profit in the electric wire business. This time, the surge in copper prices is presented alongside the recognition of profit. - FY2022-Q1ReframedAnnual report
「In the wire business, product sales by item remained steady amid a sharp rise in copper prices, resulting in revenue of ¥984.751 million, up 0.5% year on year,」
Where previous disclosures described the impact of falling copper prices and fluctuations in international market conditions, this time they describe a phase of surging copper prices. Product sales are described as remaining solid despite higher prices, indicating a change in the direction of copper price risk. - 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 disclosure continues to cite the risk that international market-driven fluctuations in the prices of materials such as copper, vinyl and polyethylene affect operating performance. - FY2020RestatedAnnual 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 disclosure continues to cite the risk that fluctuations in international market conditions for material prices, including copper, affect operating performance. - FY2019WorsenedAnnual report
「In the wire business, orders increased overall and revenue was ¥4,805.823 million, up 1.2% from the previous fiscal year, but profit margins declined owing to lower selling prices resulting from falling copper prices, higher costs such as auxiliary materials and delivery, and lower profitability due to changes in the product mix,」
Falling copper prices led to lower selling prices and profit margins, and were reflected in full-year results as a factor behind the deterioration in wire business profitability. - FY2019-Q2WorsenedAnnual report
「Although market conditions for construction and electrical distribution applications were recovering, profit margins declined owing to lower sales of high-value-added products, falling copper prices, and higher prices for other raw materials and transportation,」
Whereas the previous period cited a rise in the copper benchmark price, this period cites falling copper prices as a factor behind lower profit margins, indicating that copper price movements have adversely affected actual results. - FY2018ReframedAnnual report
「Amid expected demand for infrastructure construction ahead of the Olympics, the copper benchmark price, the main raw material, continued to trend upward, while demand from the construction and electrical distribution sectors, a major demand segment, remained broadly flat from the previous period.」
Compared with the previous downward pressure on sales from lower copper prices, the copper benchmark price is now trending upward, and higher copper prices are cited as a factor lifting sales in the wire business. Material price fluctuations themselves continue to be cited as a risk. - FY2017ReframedAnnual report
「In the wire business, prolonged weakness in orders and lower selling prices resulting from persistently low copper prices resulted in revenue of ¥4,095.063 million, down 9.9% from the previous fiscal year. In terms of profit, under the mechanism of adjusting selling prices in line with the copper benchmark price for the primary raw material, the sharp rise in the benchmark price from November onward significantly improved profit margins while the benchmark price remained low from the beginning of the fiscal year, resulting in segment profit of ¥142.591 million, compared with a segment loss of ¥56.465 million in the previous fiscal year.」
In addition to the impact of persistently low copper prices in pushing down selling prices and revenue, the disclosure cites the improvement in profit margins resulting from the rise in the copper benchmark price during the period, presenting the effects of copper price movements differently on sales and profit. - FY2017-Q3RestatedAnnual report
「In the wire business, copper benchmark prices remained lower than in the same period of the previous year during the nine months ended December, resulting in revenue of ¥2,900.793 million, down 15.9% year on year. However, in terms of profit, the sharp fall in copper prices contributed more to lower costs and offset the decline in sales, improving segment results to a profit of ¥51.175 million, compared with a segment loss of ¥89.509 million in the same period of the previous year.」
While the impact of persistently low copper prices in pushing down selling prices has continued, the explanation that lower costs offset the decline in sales has also continued from the previous disclosure. - FY2017-Q2WorsenedAnnual report
「The clear downward trend in copper prices affected selling prices, resulting in revenue of ¥1,758.661 million, down 19.5% year on year. However, in terms of profit, the sharp fall in copper prices contributed more to lower costs and offset the decline in sales,」
The impact of falling copper prices on selling prices is explicitly stated, and revenue declined 19.5% year on year. At the same time, the disclosure states that lower costs offset the decline in sales. - FY2017-Q1First statedAnnual report
「In addition to demand for copper wire remaining below the prior-year level, the further decline in copper prices and other factors resulted in net sales of 886,254 thousand yen, down 18.4% year on year.」
Lower demand for copper wire and falling copper prices are identified as factors that reduced sales in the wire and cable business.