Risks from Price Fluctuations in Materials and Components and from Securing Stable Supplies
First written in FY2017. 8 of 17 entries say "Mitigated", first in FY2023-Q2. Latest entry: FY2025.
Amada 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: 35 of 55 companies on the "Worse" side.
14 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「As a result of steadily reducing the order backlog as material procurement normalized and improving product selling prices, with the additional impact of foreign exchange movements, revenue, operating profit and profit for the year attributable to owners of the parent each reached a record high for the second consecutive period.」
It states that the normalization of material procurement and the reduction of the order backlog progressed, further mitigating the impact of supply constraints on production from the previous fiscal year. - FY2024MitigatedAnnual report
「As a result of steadily reducing the order backlog as material procurement normalized and improving product selling prices, with the additional impact of foreign exchange movements, the Group's revenue, operating profit and profit for the year attributable to owners of the parent each reached a record high for the second consecutive period.」
It states that progress in reducing the order backlog as material procurement normalized mitigated the impact of supply constraints on production. - FY2024-Q3MitigatedAnnual report
「Capital investment across the manufacturing sector remained firm for power-saving, automated and highly productive products, while the normalisation of production activity enabled progress in working through order backlogs.」
It states that the normalisation of production activity enabled progress in working through order backlogs, indicating an improvement from the period when production continued to be affected by supply constraints. - FY2024-Q2MitigatedAnnual report
「Abundant order backlogs driven by demand for highly productive products that address power conservation and labour-saving needs, together with the normalisation of production activity as the procurement environment improved and the impact of the weaker yen, enabled revenue, operating profit and profit for the quarter attributable to owners of the parent to all reach record highs for a second-quarter cumulative consolidated period.」
Regarding supply constraints and the procurement environment, it states that the procurement environment improved and production activity normalised. In Europe, some difficulties in procuring materials remain, and the Company is responding by promoting sales of alternative models. - FY2024-Q1MitigatedAnnual report
「Against this backdrop, improvements in product selling prices and the largely resolved supply constraints affecting parts and materials enabled the Group to post record highs for first-quarter revenue, operating profit and profit for the quarter attributable to owners of the parent.」
It states that the continuing supply constraints affecting components and materials had largely been resolved, and that improvements in the procurement environment and increased production contributed to results. - FY2023MitigatedAnnual report
「Procurement of semiconductors and other control components has become difficult, but the company is maintaining and expanding its production structure through the procurement of alternative products and design changes.」
Although difficulties in procuring components continued, the Company addressed the impact on production through measures including procuring alternative products and making design changes. - FY2023-Q3MitigatedAnnual report
「Despite the impact of component shortages amid strong order conditions, the Group maintained and expanded its production capacity through the procurement of alternative products and design changes, resulting in increases in both revenue and profit.」
Although shortages of materials continued to affect production, the Company maintained and expanded its production system through measures including the procurement of alternative products and design changes, leading to increased sales and profit. - FY2023-Q2MitigatedAnnual report
「The performance of the Group was affected on the production side by component shortages caused by prolonged supply constraints. However, through cross-functional global procurement activities, design changes and the use of alternative components, both revenue and profit increased.」
Although shortages of materials continued to affect production, the Company implemented measures including cross-functional procurement, design changes and alternative components, leading to increased sales and profit. - FY2023-Q1MaterialisedAnnual report
「The Group's results were affected on the production side by shortages of materials caused by supply constraints.」
It states that supply constraints and material shortages had an actual impact on production during the current quarter. Soaring material and resource prices also continued. - FY2022WorsenedAnnual report
「Procurement of semiconductors and other control components has become difficult due to the spread of COVID-19 and other factors. The Company is minimising the impact on production through advance ordering, alternative products and design changes.」
In addition to the previous component shortages and soaring material prices, it explicitly identifies difficulties procuring control components such as semiconductors and describes responses including advance ordering, alternative products and design changes. - FY2022-Q3WorsenedAnnual report
「However, the effects of the spread of the Omicron variant of COVID-19, the prolonged labour shortage and supply constraints affecting components and materials are beginning to emerge, and uncertainty about the outlook continues to persist.」
It states that, in addition to the previous component shortages and soaring material prices, the spread of the Omicron variant and the prolonged labour shortage are beginning to emerge as supply constraints. - FY2022-Q2RestatedAnnual report
「In Japan, corporate activity normalised as external demand recovered and conditions in the manufacturing sector also improved. Although component shortages, soaring material prices and extended delivery times persisted toward the second half of the fiscal year, and growth was beginning to weaken, machinery orders continued to increase.」
Although component shortages, soaring material prices and extended delivery times persisted, machinery orders increased, indicating that supply constraints and demand recovery coexisted. - FY2022-Q1WorsenedAnnual report
「In the ASEAN region, the recovery in capital investment was delayed by movement and operating restrictions resulting from the spread of COVID-19 variants, as well as soaring raw material prices. In addition, the effects of semiconductor shortages spread beyond the automotive industry to various other industries, affecting customers' operations and leaving sales sluggish.」
It states that, in addition to the previous tight component supplies and factory suspensions, soaring raw material prices and semiconductor shortages affected customer operations across a broad range of industries and delayed the recovery in capital investment. - FY2020MaterialisedAnnual report
「Regarding the supply system, operations at the 3 domestic plants in Fujinomiya, Toki and Fukushima had been suspended, but are being resumed in stages.」
Factory suspensions occurred as infections spread, and supply-side risk materialised as actual production stoppages. The mould and blade factories and the parts centre are stated to be operating normally. - FY2018MaterialisedAnnual report
「Lead times lengthened as production equipment became larger and more automated in response to increased demand for automation and component supply and demand tightened, resulting in net sales of ¥130,662 million, down 0.4% from the previous fiscal year.」
Tight component supply and demand resulted in longer annual lead times and a 0.4% decline in domestic net sales from the previous fiscal year. - FY2018-Q3MaterialisedAnnual report
「Lead times lengthened as production equipment became more sophisticated in response to growing demand for automation and component supplies tightened, resulting in net sales of ¥83,629 million, down 4.8% year on year.」
Tight component supplies materialised, resulting in longer lead times and a 4.8% year-on-year decline in domestic net sales. - FY2017First statedAnnual report
「Procurement prices may fluctuate significantly due to volatility in raw material prices and energy prices, including crude oil. In addition, supply may become difficult to maintain, and production efficiency may decline, due to industry supply and demand conditions, circumstances affecting suppliers and natural disasters.」
It newly classifies increases in procurement prices and supply difficulties caused by raw material and energy prices, supply and demand, supplier circumstances and natural disasters as risks.