Expense burden from surging material and labor costs

「We were unable to fully absorb the impact of higher raw material and component prices, labor costs, logistics costs and other cost increases, and operating profit declined 30.5% year on year to ¥266 million.」

「On the profit side, the Company worked to further promote rationalisation and reduce variable and fixed costs through structural reform. However, operating profit was ¥1,470 million, down 38.3% year on year, owing to the decline in gross margin resulting from reduced production by major customers and the impact of higher costs, particularly direct material costs, as well as variable and labour costs.」

「Higher variable costs, primarily direct material costs, pressured profitability and reduced profit」

「On the profit side, operating profit was ¥83 million, down 63.0% year on year, due to the decline in gross margin resulting from lower revenue and higher labour costs, among other factors.」

「On the profit side, although we promoted further rationalization, operating profit was ¥1,271 million, down 32.4% year on year, ordinary profit was ¥1,807 million, down 23.2%, and interim net profit was ¥1,225 million, down 38.1%, due to the decline in contribution margin resulting from lower revenue at automakers and rising labor costs and other factors.」

「On the profit side, despite the impact of soaring raw material, logistics, and energy costs, the increase in contribution margin from higher revenue and progress in further rationalization activities and other measures resulted in operating profit of ¥5,885 million, an increase of ¥1,085 million, or 22.6%, year on year.」

「As a result of actively promoting sales expansion, sales were ¥3,544 million, up 9.0% year on year. On the profit side, although cost-reduction initiatives were pursued, operating profit was a ¥13 million loss, compared with operating profit of ¥62 million in the previous fiscal year, mainly due to higher procurement component costs, inventory write-offs and other factors.」

「As a result of actively promoting sales expansion, sales were ¥2,267 million, up 5.4% year on year. On the profit side, although cost-reduction initiatives were pursued, operating profit was a ¥55 million loss, compared with operating profit of ¥101 million in the previous fiscal year, mainly due to higher component procurement costs, inventory write-offs and other factors.」

「On the profit side, although we promoted further rationalization, operating profit was ¥901 million, down 27.1% year on year, ordinary profit was ¥1,089 million, down 23.5%, and profit attributable to owners of the parent was ¥999 million, down 6.0%, due mainly to soaring raw material and energy costs.」

「On the profit side, although the entire Group worked together to implement further rationalization, consolidated operating profit was ¥3,949 million, compared with ¥5,216 million in the same period of the previous year, a decrease of 24.3%, amid difficult conditions including ongoing supply issues and price increases for raw materials, higher transportation costs accompanying economic recovery, and soaring energy prices.」

「On the profit side, although we promoted further rationalization, operating profit was ¥3,201 million, down 21.9% year on year, ordinary profit was ¥3,938 million, down 18.4%, and profit attributable to owners of the parent was ¥2,868 million, down 21.0%, due mainly to soaring raw material, logistics, and energy prices.」

「On the profit side, although we promoted further rationalization, operating profit was ¥1,651 million, down 44.9% year on year, ordinary profit was ¥2,062 million, down 41.4%, and profit attributable to owners of the parent was ¥1,439 million, down 43.0%, due to the decline in contribution margin from lower revenue and soaring raw material, logistics, and energy costs.」

「On the profit side, although we promoted further rationalization, operating profit was ¥1,236 million, down 22.3% year on year, ordinary profit was ¥1,423 million, down 28.4%, and profit attributable to owners of the parent was ¥1,063 million, down 30.6%, due to the decline in contribution margin from lower revenue and soaring raw material, logistics, and energy costs.」

「Regarding raw material costs, we will respond to higher prices for both metal and resin materials, strengthen relationships with suppliers to ensure stable supplies despite global supply problems for resin materials, and pursue further cost reductions. Regarding logistics costs, high logistics costs and difficulty securing containers continue. Across the group, we will review our global production structure with the aim of local production for local consumption and work to improve logistics methods.」

「The automotive industry, a major customer of our Group, remained in difficult conditions, affected not only by COVID-19 but also by pronounced production cuts by automakers due to the global semiconductor shortage, as well as material supply issues, higher prices and increased transportation costs accompanying the economic recovery. However, as production declines and plant shutdowns caused by lockdowns and other factors such as those seen in the previous fiscal year did not occur this fiscal year, domestic production also increased substantially year on year.」

「The automotive industry, a major customer of our Group, was affected by pronounced production cuts by automakers due to the global semiconductor shortage, as well as material supply issues, higher prices and increased transportation costs accompanying the economic recovery. However, as production declines and plant shutdowns caused by lockdowns and other factors such as those seen in the previous fiscal year did not occur this fiscal year, domestic production increased substantially year on year.」

「Regarding materials costs, we will respond to higher prices for both metal and resin materials, strengthen relationships with suppliers to ensure stable supplies despite global supply problems for resin materials, and pursue further cost reductions. Regarding personnel costs, labor costs are rising across the group and securing personnel is becoming more difficult. We will contain personnel costs through equipment automation and more efficient operations, while promoting the use of IoT and IT investment in digital transformation to increase productivity with a smaller workforce.」

「On the earnings side, the group worked together to promote initiatives to improve profitability. However, mainly because the burden of expenses increased due to higher material and labor costs, operating income was ¥7,448 million, a decrease of ¥2,440 million from the previous fiscal year, or 24.7%.」

「On the profit side, although we promoted further rationalization, operating profit was ¥5,409 million, down 30.1% year on year, ordinary profit was ¥6,122 million, down 28.6%, and profit attributable to owners of the parent was ¥4,798 million, down 26.0%, due mainly to the decline in contribution margin from lower revenue and the continuing expense burden from soaring labor and material costs and other factors.」

「On the profit side, although we promoted further rationalization, operating profit was ¥3,644 million, down 31.0% year on year, ordinary profit was ¥3,992 million, down 31.2%, and profit attributable to owners of the parent was ¥3,129 million, down 27.8%, due mainly to the decline in contribution margin from lower revenue and the increased expense burden resulting from soaring material costs and other factors.」

「On the profit side, although we promoted further rationalization, operating profit was ¥1,721 million, down 33.8% year on year, ordinary profit was ¥1,947 million, down 31.2%, and profit attributable to owners of the parent was ¥1,545 million, down 29.3%, due mainly to the decline in contribution margin from lower revenue and the increased expense burden resulting from soaring material and labor costs.」

「Regarding personnel costs, labor costs are rising across the group and securing personnel is becoming more difficult. We will work to contain personnel costs through automation of equipment and more efficient operations while increasing productivity with a smaller workforce.」

「On the profit side, although we promoted further rationalization, operating profit was ¥7,734 million, down 3.4% year on year, ordinary profit was ¥8,572 million, down 1.9%, and profit attributable to owners of the parent was ¥6,487 million, up 2.2%, due mainly to the increased expense burden resulting from soaring material and labor costs.」

「In terms of earnings, the Group worked together to promote initiatives to improve profitability. However, mainly due to the increased cost burden resulting from higher material and labour costs, operating profit was ¥5,603 million, down 0.4% year on year.」

「On the earnings front, although further rationalization measures were implemented, increased expenses due in part to higher material and labor costs resulted in operating profit of ¥2,598 million, down 1.0% from the previous period, ordinary profit of ¥2,829 million, up 0.9%, and profit attributable to owners of the parent for the quarter of ¥2,186 million, up 5.1%.」