Declining Profit Margins Due to Intensifying Competition and Price Competition

「In addition to the effects of the penetration of price revisions, segment profit increased to ¥3.455 billion, compared with ¥2.6 billion in the previous corresponding period, due to improved margins resulting from strengthened sales activities, among other factors.」

「In the extruded products sales business, revenue increased 8.8% year on year to ¥11.22 billion, driven by higher selling prices linked to aluminum ingot market prices and strong performance in the aluminum and precision-processed products divisions. Segment profit increased to ¥70 million, compared with ¥23 million in the previous corresponding period, due to the promotion of rationalization measures, including lower outsourcing costs through in-house production.」

「In the extruded products sales business, revenue increased 0.7% year on year to ¥21.332 billion despite the impact of lower volumes, as a result of efforts to strengthen customer service, including compliance with delivery schedules for standard extrusions. Segment profit turned positive at ¥313 million, compared with a segment loss of ¥566 million in the previous corresponding period, due to higher margins resulting from improvements in unprofitable transactions and transportation rates, as well as lower outsourcing costs through in-house production of aluminum-processed products.」

「In the extruded products sales business, revenue declined 2.6% year on year to ¥15.694 billion due to the impact of lower volumes, despite efforts to raise selling prices in line with aluminum ingot market prices. However, segment profit turned positive at ¥189 million, compared with a segment loss of ¥555 million in the previous corresponding quarter, due to higher productivity and improved prices for various materials, among other factors.」

「In the extruded products sales business, revenue declined 3.8% year on year to ¥10.308 billion due to the impact of aluminum ingot market prices and lower volumes, among other factors. However, segment profit increased to ¥23 million, compared with a segment loss of ¥170 million in the previous corresponding quarter, due to improvements in unprofitable transactions, among other factors.」

「In the extruded products sales business, revenue declined 4.3% year on year to ¥5.166 billion and the business recorded a segment loss of ¥48 million, compared with segment profit of ¥25 million in the previous corresponding quarter, due to lower volumes and other factors, despite aluminum ingot prices stabilizing.」

「The extruded products sales business in particular consumes large amounts of electricity during manufacturing and has been significantly affected by surging electricity charges and prices for various materials. Although the business is working to pass these increases on to selling prices, market conditions have intensified year after year and the business environment remains severe, resulting in the continued recognition of a material operating loss in the current consolidated fiscal year.」

「In the extruded products sales business, revenue increased to ¥9.07 billion, compared with ¥8.572 billion in the previous corresponding quarter, due to a recovery trend in market conditions and higher sales resulting from the surge in aluminum ingot prices, among other factors. The segment loss was ¥296 million, compared with a segment loss of ¥661 million in the previous corresponding quarter.」

「In the extruded products sales business, revenue declined 14.7% year on year to ¥13.48 billion due to the weakening of market conditions and intensifying competition resulting from the spread of COVID-19, among other factors. The business recorded a segment loss of ¥673 million, compared with a segment loss of ¥132 million in the previous corresponding quarter.」

「In the extruded products sales business, revenue declined 17.9% year on year to ¥8.572 billion and the segment loss widened to ¥661 million, compared with a segment loss of ¥167 million in the previous corresponding quarter, due to the impact of intensifying competition as market conditions weakened amid the COVID-19 pandemic, among other factors.」

「In the extruded products sales business, revenue declined 6.7% year on year to ¥21.01 billion and segment profit declined to ¥25 million, down ¥28 million year on year, due to intensifying competition resulting from sluggish market prices and the impact of higher prices for various materials, among other factors.」

「In the extruded products sales business, revenue declined 5.2% year on year to ¥15.797 billion and the segment loss widened to ¥132 million, compared with a segment loss of ¥73 million in the previous corresponding quarter, due to lower sales of aluminum-processed products amid sluggish market prices resulting from severe competition, among other factors.」

「In the extruded products sales business, revenue declined 4.2% year on year to ¥10.447 billion and the business recorded a segment loss of ¥167 million, compared with a segment loss of ¥128 million in the previous corresponding quarter, due to sluggish market prices resulting from severe competition and lower sales of precision-processed aluminum products, among other factors.」

「In the building materials business, the residential building materials business remained firm due to expanded sales of high-insulation products. However, intensified competition in the building materials business for buildings and higher fixed costs from product development investment resulted in net sales of ¥8.305 billion, down 6.4% year on year, and segment loss of ¥1.066 billion, compared with segment loss of ¥742 million in the same quarter of the previous year, resulting in lower sales and profit.」

「Operating profit declined to ¥821 million, down ¥949 million year on year, mainly due to deterioration in margins in the building materials business. Margins deteriorated due to intensifying competition in the building materials business for buildings and higher prices for various materials, while fixed costs increased in connection with capital investment and research and development.」

「In the extruded products sales business, revenue increased 5.9% year on year to ¥10.93 billion, due to higher selling prices linked to aluminum ingot market prices. However, the impact of lower volumes resulting from severe competition, among other factors, resulted in a decline in profit, with a segment loss of ¥128 million, compared with segment profit of ¥96 million in the previous corresponding quarter.」

「In the building materials business, intensified competition and higher aluminum ingot prices resulted in net sales of ¥8.869 billion, down 8.9% year on year, and segment loss of ¥702 million, compared with segment loss of ¥355 million in the same quarter of the previous year, resulting in lower sales and profit.」

「Operating profit declined to ¥1.77 billion, down ¥844 million year on year, mainly due to deterioration in margins in the building materials business. Margins deteriorated due to intensifying competition in the building materials business for buildings and higher ingot prices, while fixed costs increased in connection with capital investment and research and development.」

「In the building materials business, despite severe and intensifying competition, efforts to win short-delivery projects in the building materials business for buildings and expand the product range in the residential building materials business increased net sales 0.2% year on year to ¥39.861 billion. However, higher aluminum ingot prices and fixed costs resulted in segment loss of ¥180 million, compared with segment profit of ¥895 million in the same period of the previous year, and lower profit.」

「In the building materials business, we expanded the product range handled by the residential building materials business and pursued short-delivery projects, but intensified competition in the building materials business for buildings, together with higher fixed costs including capital investment, resulted in net sales of ¥27.58 billion, down 2.8% year on year, and segment profit of ¥216 million, down ¥1.052 billion year on year, resulting in lower sales and profit.」

「In the building materials business, net sales increased 3.1% year on year to ¥9.731 billion through efforts to win short-delivery projects and expand the product range handled by the residential building materials business. However, intensified competition in the domestic market and higher fixed costs, including capital investment, resulted in segment loss of ¥355 million, compared with segment loss of ¥240 million in the same quarter of the previous year, and lower profit.」

「If market conditions change significantly, the performance of the Group may be affected, including by exposure to severe price competition.」

「If market conditions change significantly, the performance of the Group may be affected, including by exposure to severe price competition.」