Volatility in raw material prices, including steel
First written in FY2016. 7 of 22 entries say "Materialised", first in FY2018-Q2. Latest entry: FY2027-H1.
Otani Kogyo moved to the "Worse" side of this theme in 2017, 2 years before the typical company in this theme (2019).
The whole theme swung hardest in 2021: 19 of 37 companies on the "Worse" side.
10 other companies' latest entry also says "Mitigated".
- FY2027-H1MitigatedAnnual report
「In terms of profit, the promotion of expense reductions and the pass-through of higher selling prices resulted in gross profit of ¥773 million, up ¥11 million, or 1.6%, year on year; operating profit of ¥214 million, up ¥28 million, or 15.3%; ordinary profit of ¥200 million, up ¥19 million, or 10.7%; and interim net profit of ¥137 million, up ¥12 million, or 10.0%.」
By reducing expenses and passing higher raw material and other costs through to selling prices, profit increased despite lower revenue. The Company continues to address the impact of price fluctuations. - 2026-05-12MitigatedRevision to earnings forecast
「材料価格高騰分の販売価格への転嫁及び業務改善等による製造コストの見直しを図ったことにより、営業利益、経常利益、当期純利益は前回発表予想を上回る結果となりました。」
材料価格高騰への価格転嫁と製造コストの見直しが、利益の予想超過という実績として示された。canonical thread は変更しない。 - FY2025MitigatedAnnual report
「In response to this situation, we will consolidate the know-how we have developed and pursue cost reductions, thereby limiting the impact of fluctuations in raw material prices on selling prices. At the same time, to address market conditions and increasingly diverse customer needs, we will pursue proposal-based sales, including the development of new products, in an effort to remain a valuable manufacturer for our business partners.」
While fluctuations in raw material prices and the difficulty of passing them through to selling prices remain, the Company pursued cost reductions by consolidating its know-how, reflected costs in selling prices and adopted proposal-based sales as countermeasures, resulting in higher company-wide profit. - FY2025-H1MaterialisedAnnual report
「In addition, we worked to negotiate prices in response to rising costs for materials, utilities and other items.」
Costs for materials, utilities and other items have actually risen, and the Power and Telecommunications segment is addressing this through price negotiations. - FY2024MitigatedAnnual report
「By consolidating the expertise accumulated to date and pursuing cost reductions, we will mitigate the impact of raw-material price fluctuations on selling prices. At the same time, to respond to market conditions and increasingly diverse customer needs, we will pursue consultative sales, including the development of new products, and strive to remain a valuable manufacturer for our business partners.」
Although higher raw material prices and the difficulty of passing higher costs through to selling prices remain, measures including cost reductions, passing costs through to prices and proposal-based sales are being advanced, and profit increased in both the power and communications and building materials divisions. - FY2024-Q3Slight profit growth despite soaring material costsAnnual report
「In building materials, sales were strong as activity in large projects, particularly in the Tokyo metropolitan area, increased and small and medium-sized projects continued to move steadily. Although the impact of soaring material costs continued, profit increased slightly.」
Although the impact of soaring material costs continued, segment profit in the building materials division increased 13.8% year on year against a backdrop of higher sales. An improvement from the previous quarter's decline in profit is indicated. - FY2024-Q2MaterialisedAnnual report
「In building materials, sales were strong as activity in large projects, particularly in the Tokyo metropolitan area, increased and small and medium-sized projects continued to move steadily. However, profit declined as the impact of soaring material costs continued.」
The impact of soaring material costs has actually appeared as lower profit in the building materials division. Although sales increased 9.9% year on year, segment profit decreased 17.9%. - FY2024-Q1RestatedAnnual report
「In the building materials division, sales were strong as activity in large projects increased and small and medium-sized projects also began to move steadily. However, profit did not increase significantly because the impact of soaring material costs partly remained.」
Sales were strong due to activity in large, small and medium-sized projects, while the partial persistence of the impact of soaring material costs continues to constrain profit growth in the building materials division. - FY2023Progress in passing higher costs through to prices coexists with pressure on building materials profitAnnual report
「Sales for the fiscal year increased ¥781 million, or 12.2%, year on year to ¥7,189 million. Although material costs continued to rise, gross profit increased ¥59 million, or 4.9%, year on year to ¥1,290 million, due to progress in passing higher costs through to selling prices and a review of manufacturing costs. Operating profit increased ¥77 million, or 45.2%, year on year to ¥250 million.」
Despite continued increases in material costs, company-wide profit increased due to passing higher costs through to selling prices and reviewing manufacturing costs. However, segment profit in the building materials division decreased 20.0% due to soaring material costs, with the impact differing by division. - FY2023-Q3Differing impacts by divisionAnnual report
「In the building materials business, activity at large projects increased and small and medium-sized projects continued to progress steadily, resulting in strong revenue. However, profit declined due to the impact of higher material costs. As a result, revenue was ¥2,288 million, up ¥570 million, or 33.2%, year on year, while segment profit was ¥94 million, down ¥16 million, or 14.7%.」
The impact of soaring material costs has actually appeared as lower profit in the building materials division. Meanwhile, profit increased in the power and communications division as higher costs were passed through to selling prices, with the impact of raw material price risk differing by division. - FY2023-Q2MaterialisedAnnual report
「In building materials, sales were strong as activity in large projects increased and small and medium-sized projects continued to move steadily. However, profit declined due to the impact of soaring material costs.」
Soaring material costs have actually appeared as lower profit in the building materials division. Sales increased 36.1%, while segment profit decreased 8.4%. - FY2023-Q1Progress in passing higher costs through to pricesAnnual report
「Sufficient attention should be paid to downside risks arising from higher raw material prices, supply constraints and fluctuations in financial and capital markets.」
Although the environment of continued increases in raw material prices persists, the power and communications division is progressing with passing higher costs through to prices. Partly as a result, segment profit increased 29.0% year on year. Progress in addressing raw material price risk is indicated. - FY2022-Q3MaterialisedAnnual report
「Overall activity was sluggish, with construction schedules for large projects delayed by soaring steel prices and longer lead times.」
Soaring steel prices and longer lead times have actually appeared as delays in the schedules of large projects and sluggish activity across the building materials industry. - FY2022-Q2MaterialisedAnnual report
「Overall activity was sluggish, with construction schedules for large projects delayed by soaring steel prices and longer lead times.」
Soaring steel prices and longer lead times have actually appeared as delays in the schedules of large projects and sluggish activity across the building materials industry. - FY2021RestatedAnnual report
「In the power and communications industries, our major customers, capital investment is also tending to be restrained, and order competition is becoming increasingly intense. As a result, it is becoming difficult to pass costs through directly to selling prices.」
The continued difficulty of passing fluctuations in raw material prices through to selling prices due to restrained capital investment and intensifying order competition is indicated. - FY2020MitigatedAnnual report
「We monitor market prices for the raw materials required for our production. We also maintain good relationships with suppliers and subcontractors to establish a smooth supply chain.」
Although the risk of raw material price fluctuations itself continues, specific measures are described, including monitoring market prices and maintaining relationships with suppliers and subcontractors. - FY2019WorsenedAnnual report
「Order competition is becoming increasingly intense, making it more difficult to pass costs through directly to selling prices.」
The difficulty of passing the impact of raw material price fluctuations through to selling prices due to intensifying order competition has again been highlighted. Soaring material costs are also a concern in the building materials division. - FY2019-Q2MaterialisedAnnual report
「In the steel tower and structural steel businesses, many steel towers are significantly aged, and demand for replacement is expected to increase in the future. However, profit remains sluggish due to higher material costs and other factors.」
Higher material costs continue to be evident in actual performance as sluggish profit growth in the steel tower and structural steel businesses. - FY2018WorsenedAnnual report
「Order competition is becoming increasingly intense, making it more difficult to pass costs through directly to selling prices.」
It is stated more specifically that intensifying order competition is making it difficult to pass fluctuations in raw material prices through to selling prices. - FY2018-Q2MaterialisedAnnual report
「In the steel tower and structural steel businesses, orders for new steel towers increased, but profit remained sluggish due to higher material costs and other factors.」
Higher material costs have actually appeared as sluggish profit growth in the steel tower and structural steel businesses, and the impact of raw material price volatility is noted. - FY2017RestatedAnnual report
「Overhead-line hardware, our main product, has a high raw-material content, including steel, and price fluctuations have a significant impact on earnings.」
The risk of earnings volatility due to fluctuations in raw material prices, including steel, and delays in passing higher costs through to selling prices continues to be cited. - FY2016First statedAnnual report
「Overhead-line hardware, our main product, has a high raw-material content, including steel, and price fluctuations have a significant impact on earnings. If higher costs cannot be passed through to selling prices promptly, the performance of this division could cause significant fluctuations in operating results.」
The risk of earnings volatility arising from the high raw-material content and delays in passing higher costs through to selling prices is explicitly identified.