Deterioration in Profit Margins Due to Rising Metal Material and Resin Raw Material Prices
First written in FY2017. 12 of 26 entries say "Worsened", first in FY2021. Latest entry: 2026-08-07.
Advanex moved to the "Worse" side of this theme in 2018, 3 years before the typical company in this theme (2021).
The whole theme swung hardest in 2021: 27 of 53 companies on the "Worse" side.
18 other companies' latest entry also says "Worsened".
- FY2026MitigatedAnnual report
「In our major markets, automotive and office automation equipment, pass-through of these cost increases to selling prices had traditionally not been widely accepted. However, following guidance from the Japan Fair Trade Commission, price pass-through has gradually come to be accepted, although individual negotiations with customers are still required.」
Although higher raw material, personnel and energy costs, among others, continue, the disclosure states that the gradual acceptance of price pass-through and the effects of price revisions contributed to improved earnings. - 2026-05-15WorsenedEarnings
「Segment income decreased 46.6% to ¥80 million due to higher fixed costs and other expenses, including upfront investment related to the medical business at the Czech plant.」
In Europe, higher fixed costs, including upfront investment, put pressure on income. - FY2026-H1WorsenedAnnual report
「Higher fixed costs, including personnel and energy costs, resulted in a segment loss of ¥153 million, compared with a profit of ¥18 million in the same period of the previous year.」
The burden of higher fixed costs, including personnel and energy costs, weighed on profit in the European business, which turned from a profit in the same period of the previous year to a loss. - FY2025Higher costs persist, but price pass-through is progressingAnnual report
「In our major markets, automotive and office automation equipment, pass-through of these cost increases to selling prices had traditionally not been permitted. However, following guidance from the Japan Fair Trade Commission, price pass-through has gradually come to be accepted, although individual negotiations with customers are still required.」
While higher electricity, personnel and transportation costs, among others, remain factors weighing on earnings, the disclosure states that price pass-through has gradually come to be accepted, partly in response to guidance from the Japan Fair Trade Commission. - FY2025-H1WorsenedAnnual report
「Revenue rose 5.4% year on year to ¥1.618 billion, but declined in local-currency terms. In addition, higher labor and energy costs caused segment profit to fall 74.1% to ¥18 million.」
Higher personnel and energy costs weighed on profit in the Europe segment, resulting in a substantial decline. The ongoing risk of higher costs for materials and energy, among others, continues to be reflected in results. - FY2024Higher costs persist, but price pass-through is progressingAnnual report
「Raw material prices rose sharply in fiscal 2023, becoming a major factor weighing on earnings. We have sought to mitigate the risk by entering into contracts with major customers that link selling prices to raw material prices, but negotiations have stalled in some cases, and risk hedging is not complete because of time lags before the higher costs are reflected in selling prices.」
While soaring raw material prices were a major factor weighing on earnings in fiscal 2023, the disclosure also cites mitigation through price-linked contracts and delays in negotiations and in reflecting the costs in selling prices. - FY2024-Q3RestatedAnnual report
「Segment profit fell 21.9% year on year to ¥73 million, mainly due to higher personnel and energy costs.」
Higher personnel and energy costs continue to weigh on profits in Europe and Asia. - FY2024-Q2RestatedAnnual report
「Segment profit declined 27.4% to ¥224 million due in part to higher labor and energy costs.」
Higher labor and energy costs continue to be reported as factors weighing on profit in the Asia segment. - FY2024-Q1RestatedAnnual report
「Segment profit was ¥52 million despite higher labor and energy costs, compared with a loss of ¥17 million in the same quarter of the previous year.」
Higher labor and energy costs continue to be reported as factors weighing on earnings in Europe. While the impact of higher costs remains, segment profit improved. - FY2023WorsenedAnnual report
「Raw material prices soared in fiscal 2022 and became a major factor weighing on earnings. We have entered into contracts with major customers linking selling prices to raw material prices to mitigate the risk, but negotiations have stalled in some cases, and risk hedging is not complete because of time lags before the increases are reflected in selling prices.」
Soaring raw material prices actually became a major factor weighing on earnings, and the response through price-linked contracts remains subject to stalled negotiations and delays before the increases are reflected. In addition, higher electricity, labor, and transportation costs were separately identified as factors weighing on earnings. - FY2023-Q3Costs remain high, but price pass-through is progressing in EuropeAnnual report
「Segment profit increased 179.5% to ¥94 million, as progress in passing costs on to selling prices offset factors weighing on earnings, including soaring material and energy costs.」
Although higher material and energy costs continued to weigh on earnings, progress in passing costs on to selling prices in Europe contributed to improved profit. - FY2023-Q2WorsenedAnnual report
「Repeated production adjustments for automotive customers due to semiconductor shortages and the impact of China's zero-COVID policy caused revenue to decline 2.1% year on year to ¥4,180 million. Segment profit of ¥14 million, compared with profit of ¥236 million in the same quarter of the previous year, reflected in part the impact of soaring material costs.」
In Japan, soaring material costs actually became a factor behind the segment loss, resulting in a shift from profit in the same period of the previous year to a loss. Earnings pressure related to raw materials continues alongside semiconductor shortages and production adjustments. - FY2023-Q1WorsenedAnnual report
「Although demand in the automotive industry, our main market, remained strong, difficult conditions continued, with production plans repeatedly revised downward due to semiconductor shortages and the impact of the lockdown in Shanghai, China.」
Higher raw material costs are identified as a factor weighing on profits in the Japan, Americas, Europe, and Asia segments, while semiconductor shortages and tight logistics also continue. - FY2022WorsenedAnnual report
「Raw material prices have continued to soar since fiscal 2021 and were a major factor weighing on earnings in the previous fiscal year. We have entered into contracts with major customers linking selling prices to raw material prices to mitigate the risk, but negotiations have stalled in some cases, and risk hedging is not complete because of time lags before the increases are reflected in selling prices.」
Soaring raw material prices have continued to weigh on earnings, and the disclosure notes that the response through price-linked contracts has been subject to stalled negotiations and time lags before the increases are reflected in selling prices. - FY2022-Q3WorsenedAnnual report
「During the cumulative third quarter of the consolidated fiscal year, vaccination progressed mainly in developed countries and the economy gradually recovered, but uncertainty increased again due to soaring raw material and logistics costs and the rapid global spread of the Omicron variant of the novel coronavirus. In addition, although demand in the automotive industry, the Company’s main market, was strong, production plans were revised due to delays in the supply of automotive parts from ASEAN and shortages of raw materials such as semiconductors and resin materials, which had a material impact on the Company’s results.」
In addition to higher raw material and logistics costs, shortages of semiconductors and resin materials and delays in parts supplies continue, affecting our group's performance through revisions to production plans. - FY2022-Q2MaterialisedAnnual report
「Although demand in the automotive industry, our main market, remained strong, production plans were revised because of delays in the supply of automotive parts from ASEAN and global shortages of semiconductors, resin materials, and other raw materials, which had a considerable impact on our group's performance.」
The previously reported risk of raw material shortages actually materialized as shortages of semiconductors and resin materials and delays in parts supplies, affecting our group's performance through revisions to production plans. - FY2022-Q1WorsenedAnnual report
「During the cumulative first quarter of the consolidated fiscal year, concerns about shortages of semiconductors and raw materials and the renewed spread of the novel coronavirus in Asia increased. However, economic activity resumed in earnest in major Western countries and China as vaccination progressed, and signs of recovery were seen, particularly in manufacturing.」
In addition to the previously reported risk of higher raw material prices, concerns about shortages of semiconductors and raw materials were explicitly identified. - FY2021WorsenedAnnual report
「In addition to soaring raw material prices, new risk factors such as supply shortages have emerged, and the global economy in fiscal 2021 is expected to remain unpredictable.」
In addition to soaring raw material prices, supply shortages were identified as a new risk factor. Meanwhile, mitigation measures through price-linked contracts and changes in material suppliers continue. - FY2020MitigatedAnnual report
「To mitigate the risk of soaring prices, we have entered into contracts, primarily with automotive customers, under which selling prices are linked to raw material prices. Regarding supply stoppages caused by disasters and other events, most of the raw materials handled by our group are standard materials that can be substituted, making it possible to mitigate the risk, except in some cases, by changing material suppliers.」
Specific risk mitigation measures are described, including price-linked contracts for increases in raw material prices and the use of substitute materials or changes in suppliers in the event of supply stoppages. - FY2020-Q2RestatedAnnual report
「Revenue for the cumulative consolidated second-quarter period was ¥10,473 million, down 0.1% year on year, while operating profit was ¥150 million, compared with profit of ¥2 million in the same quarter of the previous year.」
The current-quarter discussion does not explicitly identify any new earnings impact from soaring material costs, and no significant change is considered to have occurred in the previously reported risk of higher material prices. - FY2019-Q3MaterialisedAnnual report
「Due in part to strong performance in the automotive business, revenue increased 6.6% year on year to ¥6,212 million, but segment loss was ¥120 million, compared with a loss of ¥75 million in the same quarter of the previous year, due in part to soaring material costs.」
Soaring material costs actually occurred, and the Japan segment's loss widened from ¥75 million in the same period of the previous year to ¥120 million. - FY2019-Q2MaterialisedAnnual report
「Due in part to strong performance in the automotive business, revenue increased 5.3% year on year to ¥4,055 million, but segment loss was ¥107 million, compared with a loss of ¥63 million in the same quarter of the previous year, due in part to soaring material costs.」
The previously reported risk of higher material prices actually materialized and was identified as a factor behind the wider loss in the Japan segment. - FY2018RestatedAnnual report
「If prices for metal materials such as stainless steel and copper products, and prices for resin raw materials, rise and it is difficult to pass the increase in material costs on to selling prices amid intense price competition with competitors, this could lead to higher manufacturing costs and lower profit margins for our group.」
The risk of lower profit margins due to higher metal and resin raw material prices and difficulty passing these increases on to selling prices continues to be reported. - FY2017First statedAnnual report
「If prices for metal materials such as stainless steel and copper products, and prices for resin raw materials, rise and it is difficult to pass the increase in material costs on to selling prices amid intense price competition with competitors, this could lead to higher manufacturing costs and lower profit margins for our group.」
The rise in prices of metal materials and resin raw materials and the difficulty of passing these increases on to selling prices are identified as risks that could lead to higher manufacturing costs and lower profit margins.