Surging metal raw material prices and delays in passing through costs
First written in FY2021. 5 of 16 entries say "Materialised", first in FY2022-Q3. Latest entry: 2026-08-14.
OKUMURA ENGINEERING corp. moved to the "Worse" side of this theme in 2025, 4 years after the typical company in this theme (2021).
The whole theme swung hardest in 2021: 27 of 53 companies on the "Worse" side.
20 other companies' latest entry also says "Materialised".
- 2026-08-14MaterialisedPresentation materials on financial results
「In response to higher component procurement costs, the Company implemented product price revisions in July, as it did last year.」
Higher component procurement costs were identified as a factor reducing first-quarter profit, and the implementation of price revisions was also disclosed. - FY2026RestatedAnnual report
「Raw Material Cost Inflation Risk」
Sharp increases in market prices for copper, stainless steel, aluminum and iron, difficulty securing quantities, and delays in or difficulty with passing costs through to prices continue to be listed as major risks, with both likelihood and impact rated as high. - FY2025WorsenedAnnual report
「The group faces the risk of sharp increases in domestic or international market prices for copper, stainless steel, aluminum, iron and other metal materials required for valve production. Situations in which it becomes difficult to secure the quantities required for production are also foreseeable. In addition, delays in, or difficulties with, passing surging raw material costs through to product prices are foreseeable.」
Both the likelihood and impact of the risk of surging raw material costs are rated as high. The results also state that higher purchased material prices were a factor reducing earnings. - FY2025-H1MitigatedAnnual report
「Although profit was affected by persistently high raw-material prices and energy costs, as well as higher labor costs associated with wage increases, operating profit rose to ¥476.718 million, up 65.5% year on year, owing in part to improved profitability from increased sales of our specialty customized products.」
Although the impact of persistently high raw material prices and energy costs and higher personnel expenses remains, operating profit increased substantially due to improved profitability from higher sales of customized products, indicating the effects of measures addressing cost increases. - FY2024MaterialisedAnnual report
「In terms of earnings, although revised selling prices and other factors made a contribution, operating profit, ordinary profit and net income attributable to owners of the parent declined due to temporarily sluggish sales following production adjustments implemented in the first half, a higher cost-of-sales ratio resulting from persistently high raw material prices and energy costs, and increases in selling, general and administrative expenses and other factors.」
Persistently high raw material prices and energy costs emerged in the current fiscal year's results as factors weighing on earnings through a higher cost-of-sales ratio. Revised selling prices were cited as a positive factor. - FY2024-Q3MaterialisedAnnual report
「In terms of earnings, although revised selling prices and other factors made a positive contribution, operating profit was ¥571.179 million, down 9.5% year on year, due to persistently high raw material prices, increases in selling, general and administrative expenses and other factors.」
Persistently high raw material prices emerged in the results as a factor weighing on operating profit, together with increases in selling, general and administrative expenses and other factors, with operating profit down 9.5% year on year. - FY2024-Q1MitigatedAnnual report
「Although operating profit was affected by persistently high raw-material prices, it rose to ¥234.569 million, up 57.4% year on year, owing to higher revenue, revised selling prices and improved profitability resulting from increased sales of our specialty customized products, among other factors.」
Although the impact of persistently high raw material prices remains, operating profit increased due to revised selling prices and higher sales of customized products, and the company states that the impact was absorbed on the earnings side. - FY2023MitigatedAnnual report
「In terms of earnings, although persistently high raw material prices, higher personnel expenses and other factors weighed on earnings, operating profit increased due to higher sales and the effects of initiatives to revise selling prices.」
Raw material prices remain persistently high, but the effects of initiatives to revise selling prices increased operating profit, with the effects of measures addressing the risk of passing costs through to prices reflected in full-year results. - FY2023-Q3MitigatedAnnual report
「In terms of earnings, operating profit was ¥630.914 million, up 39.5% year on year, as higher sales and the effects of initiatives to revise selling prices outweighed increases in cost of sales due to persistently high raw material prices and other factors, as well as increases in selling, general and administrative expenses.」
Although the impact of higher cost of sales due to persistently high raw material prices remains, operating profit increased 39.5% year on year due to the effects of revised selling prices and higher sales, indicating some progress in addressing the risk relating to passing costs through to prices. - FY2023-Q2MitigatedAnnual report
「In terms of earnings, operating profit was ¥305.710 million, up 23.1% year on year, as higher sales and the effects of initiatives to revise selling prices outweighed the effects of increased cost of sales due to surging raw material prices and other factors, as well as increases in selling, general and administrative expenses.」
Although the impact of higher cost of sales due to surging raw material prices remains, the effects of initiatives to revise selling prices have become a factor supporting earnings, and the company states that some progress has been made in addressing the risk of delays in passing costs through to prices. - FY2023-Q1MaterialisedAnnual report
「In terms of earnings, operating profit was ¥149.036 million, up 41.3% year on year, as higher sales outweighed the effects of increased cost of sales due to surging raw material prices and other factors, as well as increases in selling, general and administrative expenses.」
Surging raw material prices emerged in the results as higher cost of sales and became a factor weighing on earnings. - FY2022WorsenedAnnual report
「In Japan, downside risks to the economy have been increasing due to the impact of COVID-19, the ongoing depreciation of the yen, persistently high crude oil prices and surging raw material prices, creating a situation that warrants close attention.」
In addition to surging raw material prices, the company indicated increased downside risks to the economy due to persistently high crude oil prices and other factors. - FY2022-Q3MaterialisedAnnual report
「On the earnings front, lower revenue caused by the economic downturn resulting from COVID-19 weighed on profit. In addition, pricing pressure on marine exhaust-gas valves due to the emergence of competitors and higher manufacturing expenses resulted in operating income of ¥452.111 million, down 50.6% year on year.」
The company states that increases in manufacturing expenses and other factors emerged in its results as drivers of lower earnings, with operating profit down 50.6% year on year. - FY2021First statedAnnual report
「In its valve manufacturing and sales business, our group procures various metal materials, including copper, stainless steel, aluminum and iron, for valve production, but faces the risk of sharp increases in domestic or international market prices. Situations in which it becomes difficult to secure the quantities required for production are also foreseeable. In addition, delays in, or difficulties with, passing surging raw material costs through to product prices are foreseeable.」
Sharp increases in metal material market prices, difficulty securing quantities and delays in passing costs through to product prices are identified as risks, with developing new suppliers, improving productivity and reviewing designs identified as countermeasures.