Risk of Earnings Volatility from Public and Private Capital Investment, Price Competition and Raw Material Price Fluctuations
First written in FY2017. 5 of 8 entries say "Worsened", first in FY2018. Latest entry: FY2024.
Takuma moved to the "Worse" side of this theme in 2018, 1 year before the typical company in this theme (2019).
The whole theme swung hardest in 2020: 46 of 75 companies on the "Worse" side.
39 other companies' latest entry also says "Restated".
- FY2024RestatedAnnual report
「In addition to monitoring and forecasting trends in equipment, materials and construction prices, the Group is working to eliminate the risk of cost increases by diversifying suppliers through the development of new business partners and strengthening collaboration with partner companies from the early stages before project orders are received.」
The company continues to address the risk of surging equipment, materials and construction prices through price monitoring, supplier diversification and early collaboration with partner companies. - FY2023MitigatedAnnual report
「In addition to monitoring and forecasting trends in equipment, materials and construction prices, the Group is working to eliminate the risk of cost increases by diversifying suppliers through the development of new business partners and strengthening collaboration with partner companies from the early stages before project orders are received.」
The company explicitly identified price monitoring, supplier diversification and early collaboration with partner companies as measures to address the risk of surging equipment, materials and construction prices. - FY2023-Q1WorsenedAnnual report
「Prices for equipment and materials, particularly steel, remain on an upward trend, creating a situation that requires attention going forward.」
The continued upward trend in prices for equipment and materials, particularly steel, was identified as a factor requiring attention going forward. - FY2022-Q3WorsenedAnnual report
「In addition, amid uncertainty over the outlook caused by COVID-19, some effects have been observed, including declining willingness to make capital investments and delays to plans. The situation also requires attention going forward due to rising prices for equipment and materials, particularly steel.」
In addition to declining willingness to make capital investments and delays to plans, rising prices for equipment and materials, particularly steel, continued and became more clearly identified as factors requiring attention going forward. - FY2022-Q2WorsenedAnnual report
「In addition, amid uncertainty over the outlook caused by COVID-19, some effects have been observed, including declining willingness to make capital investments and delays to plans. Although the situation also requires attention going forward due to rising prices for equipment and materials, particularly steel, no material impact has been observed on operating results for the cumulative second quarter of the current consolidated fiscal year.」
The company explicitly identified rising prices for equipment and materials, particularly steel, as a factor requiring attention as a potential source of future earnings volatility. - FY2020WorsenedAnnual report
「Many EPC projects for various plants extend over a long period of approximately 3–5 years from order receipt to delivery, creating a time lag between estimation and ordering. If the prices of equipment, materials and construction rise substantially during this period due to changes in economic conditions and the increases cannot be reflected in the contract price, the Group's operating results and financial position may be affected by deterioration in project profitability.」
The company specified the risk of surging equipment, materials and construction prices in connection with the time lag associated with long-term projects lasting approximately 3–5 years from order receipt to delivery. It also described measures including diversifying suppliers and engaging partner companies at an early stage. - FY2018WorsenedAnnual report
「The operating results and financial condition of the Group may be affected by changes in government policy, trends in public investment and private-sector capital investment, price competition and structural changes in the market resulting from an increase in new market entrants, fluctuations in the prices of raw materials and other factors, and stock market conditions.」
In addition to the previously identified risks related to public- and private-sector investment, market structure, price competition and raw material prices, the company explicitly identified changes in government policy as a risk affecting operating results and financial condition. - FY2017First statedAnnual report
「The operating results and financial condition of the Group may be affected by trends in public investment and private-sector capital investment, price competition and structural changes in the market resulting from an increase in new market entrants, fluctuations in the prices of raw materials and other factors, and stock market conditions.」
The company newly provided a systematic description of public- and private-sector investment, market structure, price competition, raw material prices and stock market conditions as risks affecting operating results and financial condition.