Soaring Steel Prices and Dependence on Specific Suppliers

「In addition to the impact of U.S. tariff policy, the external environment remained uncertain due to soaring energy and material prices against a backdrop of geopolitical risks, including the situation in the Middle East.」

「自己株式取得については、当初計画の約400億円に加え、2027年度中に約600億円を目安に追加で実施し、本中計における取得額の合計を約1,000億円に修正する。」

「The Group is building a database of existing products to identify and secure necessary components and other items at an early stage, verify suppliers' financial conditions, and establish alternative procurement methods, including a multiple-sourcing system, and will continue to expand these efforts. In addition, Sanwa Shutter Corporation, the Group's core operating company, aims to achieve shared prosperity throughout the supply chain by complying with the Partnership Building Declaration, conducting appropriate discussions with suppliers, and determining transaction prices, cost-sharing arrangements and payment terms accordingly.」

「To prevent disruption to the procurement of key materials and components, we have established alternative procurement methods, including early identification and securing of necessary materials, monitoring suppliers' financial conditions and a multi-source procurement system, and will continue to expand them.」

「During the nine-month period ended 31 December, the external environment surrounding the group remained uncertain, owing to persistent high inflation, elevated interest rates in various countries, higher energy costs resulting from the prolonged situation in Ukraine, concerns over the outlook for the Chinese economy and escalating tensions in the Middle East.」

「Meanwhile, uncertainty persisted amid higher policy rates in various countries due to accelerating inflation, a slowdown in the Chinese economy, soaring energy and other prices due to the prolonged situation in Ukraine, and soaring raw material prices in Japan accompanying the rapid depreciation of the yen.」

「Meanwhile, the tight supply-demand balance accompanying the rapid recovery in economic activity continued to cause impacts from soaring raw material prices, component shortages and other supply chain disruptions. Uncertainty persisted amid risks of an economic downturn, including accelerating inflation and other monetary tightening through higher interest rates, a rapid depreciation of the yen driven by widening Japan-U.S. interest rate differentials, higher energy and other prices due to the prolonged situation in Ukraine, and the impact of restrictions on economic activity in China.」

「At the same time, the impact of tight supply and demand accompanying the rapid recovery in economic activity continued, including soaring raw material prices, shortages of components and supply chain disruptions. Concerns also emerged over the risk of an economic downturn due to accelerating inflation, monetary tightening such as higher interest rates, the prolonged situation in Ukraine and the impact of restrictions on economic activity in China, and the outlook remained uncertain.」

「To prevent disruption to the procurement of key materials and components, we have established alternative procurement methods, including a dual-sourcing system, and will continue to expand them.」

「Meanwhile, tight supply and demand accompanying the rapid recovery in economic activity continued to affect business operations through soaring raw material prices, shortages of components and other supply chain disruptions, as well as labor shortages. Uncertainty also continued, with new variants spreading toward the end of the year.」

「Meanwhile, concerns remain over the impact on economic recovery of supply shortages and higher prices for raw materials and components caused by tight supply and demand accompanying the recovery in economic activity and by supply-chain disruptions during the COVID-19 pandemic, as well as the global labor shortage.」

「Meanwhile, raw material prices continue to soar worldwide amid expectations of an economic recovery. The Group companies also worked to raise selling prices and reduce costs in response to soaring raw material prices.」

「The Group is making every effort to reduce costs, but it is difficult to absorb all of the increases, and it is working to raise product prices in response to higher costs for raw materials, auxiliary materials and logistics.」

「The Group is making every effort to reduce costs, but it is difficult to absorb all of the increases, and it is working to raise product prices.」

「Profit increased 14.3% year on year to ¥10,115 million in segment profit, due to higher volumes and the pass-through to selling prices of higher steel costs.」

「Profit was ¥3,311 million, up 17.9% from the same quarter of the previous year, as higher steel prices were passed through to selling prices, in addition to the effect of higher revenue and continuing efforts from the previous year.」

「Profit was ¥1,014 million, up 18.9% from the same quarter of the previous year, as higher steel prices were passed through to selling prices, in addition to the effect of higher revenue and continuing efforts from the previous year.」

「Profit was ¥8,850 million, up 9.3% year on year, as the pass-through of higher steel prices and the effect of higher revenue resulted in segment profit.」

「Profit was ¥7,040 million, up 6.8% year on year, as the increase in revenue offset higher steel prices.」

「Profit deteriorated by ¥230 million from the same quarter of the previous year due to higher steel prices and increased selling, general and administrative expenses from newly consolidated domestic operations, resulting in a segment loss of ¥326 million.」

「Prices of the Group's principal raw materials, including steel products such as steel sheet and stainless steel, were temporarily trending higher due to factors including yen depreciation, and steel prices may rise sharply again.」