Surge in Procurement Costs Due to Higher Raw Material and Crude Oil Prices
First written in FY2023-Q1. 7 of 13 entries say "Worsened", first in FY2023-Q2. Latest entry: FY2026.
The whole theme swung hardest in 2022: 121 of 167 companies on the "Worse" side.
- FY2026WorsenedAnnual report
「In addition to the decline in sales, higher raw material prices and increased quality improvement costs resulted in profit falling short of the plan.」
The rise in raw-material prices, together with higher quality-improvement costs and changes in the product mix, affected performance through profit falling short of plan and a decline in operating profit. - FY2026-H1WorsenedAnnual report
「Higher raw-material prices and labor costs increased the cost ratio, while higher selling, general and administrative expenses also pressured profit.」
The higher cost ratio resulting from surging raw-material prices and labor costs, together with higher selling, general and administrative expenses and failure to meet the sales plan, actually affected performance through a year-on-year decline in operating profit. - FY2024WorsenedAnnual report
「However, the impact of surging prices for purchased materials and labor costs resulting from higher prices requires continued attention.」
The company explicitly identified surging prices for purchased materials and labor costs as issues requiring action, and the situation in which higher fixed and procurement costs continued to pressure profit margins. - FY2024-Q3RestatedAnnual report
「During the cumulative second quarter of the current fiscal year, the Japanese economy continued to experience elevated energy prices and sharp price increases, particularly for imported materials, due to international conflicts, yen depreciation and other factors. Although employment conditions showed improvement, real wages faced strong upward pressure, and costs continued to trend higher overall.」
Energy and imported-material prices remained elevated, and costs continued to trend higher against a backdrop of international conflicts and yen depreciation. - FY2024-Q2RestatedAnnual report
「During the cumulative second quarter of the current fiscal year, the Japanese economy continued to experience elevated energy prices and sharp price increases, particularly for imported materials, due to international conflicts, yen depreciation and other factors. Although employment conditions showed improvement, real wages faced strong upward pressure, and costs continued to trend higher overall. Meanwhile, on the sales side, prices and volumes both continued to trend higher, supported by efforts to pass higher costs on to selling prices and the easing of supply restrictions for some materials, including semiconductors, in the manufacturing sector. Overall business sentiment was beginning to shift from bottoming out toward improvement, although improved earnings from cost pass-through often failed to keep pace with rising costs.」
Energy and imported-material prices remained elevated, and costs continued to trend higher. The company explained that although efforts to pass higher costs on to selling prices were under way, earnings improvement often failed to keep pace with rising costs. - FY2024-Q1WorsenedAnnual report
「Although employment conditions improved, costs continued to rise due to higher wages resulting from rising consumer prices and surging prices for imported resources caused by yen depreciation and other factors.」
The company stated that rising wages and surging imported-resource prices due to yen depreciation drove costs higher, affecting performance through a decline in the gross profit margin for the quarter. - FY2023WorsenedAnnual report
「Higher raw-material and component procurement costs and longer lead times resulting from surging resource prices and worsening semiconductor supply conditions have led to higher production costs for the company's products, restrictions on production volumes and longer delivery lead times for product sales. As a result, particularly during the first half of the fiscal year, it remained difficult to forecast production and sales conditions several months ahead.」
The company stated that higher raw-material and component procurement costs and longer lead times had actually affected operations through higher production costs, production-volume restrictions and longer sales delivery lead times for its products. - FY2023-Q3RestatedAnnual report
「Meanwhile, concerns about domestic inflation have increased and the outlook remains uncertain, due to the prolonged Russia-Ukraine issue and rising import prices for energy, raw materials and other goods resulting from yen depreciation amid sharp exchange-rate movements.」
The company has reconfirmed that the Russia-Ukraine issue, rising import prices for energy and raw materials due to yen depreciation, and concerns about domestic inflation continue. - FY2023-Q2WorsenedAnnual report
「In addition to the higher procurement costs required to secure sufficient semiconductor components, prices of purchased components other than semiconductors have also risen markedly as a result of the factors described above. Although the company has revised selling prices for some products and absorbed part of the increase in purchase prices, the rise in procurement costs has preceded this, making an increase in the cost ratio unavoidable.」
Prices of purchased components other than semiconductors, as well as semiconductor components, have risen markedly. Although some of the increase has been absorbed through selling-price revisions, the rise in procurement costs has preceded this, making an increase in the cost ratio unavoidable, the company stated. - FY2023-Q1First statedAnnual report
「Amid the continuing difficult economic environment, including Russia's invasion of Ukraine, rising raw materials and crude oil prices, and tight supplies of electronic components such as semiconductors, the outlook remains uncertain and the situation requires close attention. In addition, the impact of higher procurement costs to secure scarce semiconductor components has gradually begun to emerge.」
The company identified rising raw materials and crude oil prices as an external-environment risk and explained that the impact of higher procurement costs to secure semiconductor components had actually begun to emerge.