Operating profit pressure from higher transportation and other costs in businesses related to the Product Business Division
First written in FY2019-Q3. 8 of 17 entries say "Worsened", first in FY2022. Latest entry: FY2026.
Neturen moved to the "Worse" side of this theme in 2019, 3 years before the typical company in this theme (2022).
The whole theme swung hardest in 2022: 3 of 7 companies on the "Worse" side.
2 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「As a result, revenue was ¥36,335 million, down 0.6% year on year. Operating profit was ¥464 million, up 157.8% year on year, due to the revenue contribution from steady overseas sales of high-strength spring steel wire and construction machinery-related products, as well as progress in revising selling prices for civil engineering and construction-related products.」
Higher revenue from overseas high-strength spring steel wire and construction machinery-related products, together with progress in price revisions, led to a substantial increase in operating profit in the Products Division-related businesses, easing the previous profit pressure from costs and fixed expenses. - 2026-05-26MitigatedFinancial results presentation
「Products segment: Profit increased owing to the revenue contribution from strong overseas sales of high-strength spring steel wire ITW® for automobiles and construction-machinery components, as well as the initial progress in revising selling prices for civil engineering and construction-related products.」
In the products segment, revised selling prices and higher revenue from certain products eased the previous pressure on profit from declining sales volumes and fixed costs. - FY2026-H1WorsenedAnnual report
「Operating profit was ¥78 million, down 47.0% year on year, due to lower revenue from civil engineering and construction-related products and domestic automotive-related products.」
In the Products Division-related businesses, operating profit declined 47.0% year on year due to lower revenue from civil engineering and construction-related products and domestic automotive-related products. - FY2025Profit pressures and improvements coexisting across segmentsAnnual report
「Profitability declined as fixed-cost burdens increased due to substantial decreases in sales volumes of automotive and motorcycle-related products other than high-strength spring steel wire and construction machinery-related products. However, operating profit increased from the same period of the previous year due to growth in construction projects adopting the company's high-strength shear reinforcement bars in civil engineering and construction-related products, as well as the pass-through of higher costs into selling prices.」
Although the higher fixed-cost burden from lower sales volumes remained, operating profit in the Products Division-related businesses increased 45.3% year on year due to an increase in construction projects and the pass-through of higher costs into prices. In the IH Division-related businesses, operating profit declined due to lower contract processing, resulting in a disparity between the segments. - FY2025-H1MitigatedAnnual report
「Operating profit was ¥148 million, up 71.7% year on year, mainly because sales after price revisions increased across all products.」
Higher sales following product price revisions translated into increased operating profit in the Products Division-related businesses, and the previous profit pressure from higher costs and delays in passing them through to prices is easing. - FY2024WorsenedAnnual report
「Operating profit was ¥123 million, down 87.4% year on year, mainly because delays in the sales of products whose prices had been revised reduced profit.」
In the Products Division-related businesses, in addition to the higher fixed-cost burden from lower sales volumes, delays in the sales of products with revised prices pressured profits, resulting in an 87.4% year-on-year decline in operating profit. - FY2024-Q3WorsenedAnnual report
「Although sales volumes of automotive-related products increased, higher fixed-cost burdens resulting from lower sales volumes of civil engineering, construction-related and construction machinery-related products, as well as delays in the sales of products whose prices had been revised due to delays in starting construction caused by the effects described above, reduced profit. Operating profit was ¥252 million, down 71.4% year on year.」
In addition to the higher fixed-cost burden from lower sales volumes, delays in the sales of products with revised prices due to delays in starting construction work pressured profits, resulting in a 71.4% year-on-year decline in operating profit in the Products Division-related businesses. - FY2024-Q2WorsenedAnnual report
「Although sales volumes of automotive-related products increased, higher fixed-cost burdens resulting from lower sales volumes of civil engineering, construction-related and construction machinery-related products, as well as delays in the sales of products whose prices had been revised, caused by revised plans in response to higher material costs and delays in starting construction due to labor shortages, reduced profit. Operating profit was ¥86 million, down 84.8% year on year.」
In addition to the higher fixed-cost burden from lower sales volumes, delays in the sales of products with revised prices added to the pressure on profits, resulting in an 84.8% year-on-year decline in operating profit in the Products Division-related businesses. - FY2024-Q1RestatedAnnual report
「Operating loss was ¥34 million, compared with operating profit of ¥201 million in the same period of the previous year, due to changes in the sales mix and higher fixed-cost burdens resulting from lower sales volumes of civil engineering, construction-related and construction machinery-related products.」
The higher fixed-cost burden resulting from lower sales volumes continued to pressure operating profit in the Products Division-related businesses, which posted an operating loss in the quarter. - FY2023WorsenedAnnual report
「Operating profit was ¥986 million, down 25.1% year on year, due to delays in passing higher costs through to prices for core construction-related products, reduced production by domestic automakers caused by shortages of components such as semiconductors, and lower productivity resulting from unstable supplies of some materials used in construction machinery.」
In addition to higher materials, electricity and other costs and delays in passing them through to prices, lower customer production and reduced productivity caused by unstable material supplies emerged as full-year profit pressures. - FY2023-Q3RestatedAnnual report
「Operating profit was ¥570 million, down 17.5% year on year, due to delays in passing higher costs through to prices for core construction-related products, reduced production by domestic automakers, and lower productivity resulting from unstable supplies of some materials.」
Delays in passing higher costs through to selling prices, reduced production by automakers, and lower productivity caused by unstable material supplies continue to pressure profits in the Products Division-related businesses. - FY2023-Q2WorsenedAnnual report
「Operating profit was ¥570 million, down 17.5% year on year, due to delays in passing higher costs through to prices for core construction-related products, reduced production by domestic automakers, and lower productivity resulting from unstable supplies of some materials.」
Profit pressure broadened from the previous increase in transportation and other costs to higher materials and electricity costs, delays in passing costs through to selling prices, and lower productivity caused by unstable material supplies, resulting in a 17.5% year-on-year decline in operating profit in the Products Division-related businesses. - FY2023-Q1WorsenedAnnual report
「Operating profit was ¥201 million, down 48.9% year on year, mainly because costs such as materials and electricity increased and the pass-through of some cost increases into product prices was delayed.」
In addition to the previous increase in transportation and other costs, higher materials and electricity costs and delays in passing these increases through to selling prices became evident, resulting in a 48.9% year-on-year decline in operating profit in the Products Division-related businesses. - FY2022WorsenedAnnual report
「Production disruptions caused by shortages of components such as semiconductors, as well as higher costs resulting from increases in the prices of materials such as steel, electricity and logistics, remain concerns.」
In addition to the previous profit pressure from higher transportation and other costs, the company cites broader concerns about rising costs, including higher logistics expenses. - FY2022-Q3RestatedAnnual report
「During the cumulative third quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
The company states that there have been no material changes to existing risks, including operating profit pressure from higher transportation and other costs. - FY2019RestatedAnnual report
「As a result, revenue was ¥21,552 million, up 1.3% year on year, but operating profit was ¥1,446 million, down 7.4% year on year, due to higher transportation and other costs.」
For the full year, the Products Division-related businesses saw revenue increase, while operating profit declined due to higher transportation and other costs. - FY2019-Q3MaterialisedAnnual report
「As a result, revenue was ¥16,201 million, up 3.8% year on year, but operating profit was ¥1,056 million, down 4.6% year on year, due to higher transportation and other costs.」
Revenue increased in the Products Division-related businesses, while higher transportation and other costs resulted in a year-on-year decline in operating profit.