Price Volatility and Procurement Difficulties for Key Raw Materials and Components
First written in FY2020. 7 of 15 entries say "Restated". Latest entry: FY2026.
Kimura Kohki moved to the "Worse" side of this theme in 2021, the same year as the typical company in this theme.
The whole theme swung hardest in 2021: 42 of 76 companies on the "Worse" side.
31 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「The company is implementing measures to address these risks, including reviewing its supply chain, stockpiling raw materials and key components, modifying designs and developing new subcontractors.」
The company continues to recognise the risks of higher prices and procurement difficulties for raw materials and components, and identifies supply-chain reviews, stockpiling, design changes and the development of new subcontractors as countermeasures. - FY2026-H1RestatedAnnual report
「However, the outlook remains uncertain because of the risk of weaker consumption resulting from rising prices and the prolonged geopolitical instability.」
The company explains that uncertainty about the outlook due to rising prices and geopolitical instability is continuing. It states that there have been no material changes to business and other risks from the securities report for the previous fiscal year. - FY2024-Q3RestatedAnnual report
「Meanwhile, the company’s business environment remains uncertain, owing to surging resource and energy prices, the effects of global monetary tightening and the weakening yen, and heightened geopolitical risks.」
The company explains that an uncertain business environment driven by resource and energy prices, monetary tightening, the weakening yen and geopolitical risks is continuing. - FY2024-Q2WorsenedAnnual report
「Meanwhile, the company’s business environment remains uncertain, owing to surging resource and energy prices resulting from the prolonged Russian invasion of Ukraine, higher domestic prices for imported materials due to the weaker yen, a rapid global rise in interest rates and labour shortages.」
In addition to raw material and resource prices, energy prices, imported material prices, exchange rates and interest rates, labour shortages are also identified as factors contributing to uncertainty, broadening the range of risk factors affecting the procurement and business environment. - FY2024-Q1RestatedAnnual report
「Meanwhile, the company’s business environment remains uncertain, owing to the prolonged Russian invasion of Ukraine, surging resource and energy prices, supply constraints on electronic components including semiconductors, sharp exchange-rate fluctuations and a rapid global rise in interest rates.」
The company explains that procurement-environment risks, including resource and raw material prices, supply constraints on electronic components and exchange-rate fluctuations, are continuing. It also newly identifies the rapid global rise in interest rates as a factor contributing to uncertainty. - FY2023WorsenedAnnual report
「The energy required to manufacture the company’s products, key raw materials such as copper and aluminium used in those products, and key components such as outdoor units and compressors may experience substantial price increases or become difficult to procure due to economic and international conditions, exchange rates and the production status of suppliers.」
In addition to price volatility and procurement difficulties for raw materials and components, the company specifies risks related to energy, international conditions and exchange rates, as well as the possibility of disruptions or stoppages in production and sales activities. - FY2023-Q3RestatedAnnual report
「Meanwhile, the company’s business environment remains unstable, owing to the prolonged Russian invasion of Ukraine, rising raw material and energy prices, supply constraints on electronic components and materials including semiconductors, and sharp exchange-rate fluctuations.」
The company explains that the previously recognised instability in the procurement environment, including rising raw material and energy prices, supply constraints on electronic components and materials, and exchange-rate fluctuations, is continuing. - FY2023-Q2WorsenedAnnual report
「However, the company’s procurement environment remains challenging, owing to Russia’s invasion of Ukraine, rising raw material and energy prices, shortages of electronic components and materials including semiconductors, higher electricity charges and the sharp depreciation of the yen.」
The company explains that factors worsening the procurement environment have expanded beyond the previously identified risks of surging raw material prices and component supply constraints to include energy prices, electricity charges, the sharp depreciation of the yen and geopolitical effects. - FY2023-Q1MaterialisedAnnual report
「Although the company has been working to revise product prices in response to surging raw material prices, raw material prices rose faster than product price revisions progressed, and profits declined as costs increased. As a result, for the cumulative first quarter of the current fiscal year, net sales were ¥2,345,019 thousand, up 5.5% year on year; operating income was ¥109,337 thousand, down 46.1%; ordinary income was ¥110,415 thousand, down 60.0%; and quarterly net income was ¥73,029 thousand, down 61.2%.」
The company explains that surging raw material prices outpaced progress on product price revisions and actually resulted in lower profits through higher costs. - FY2022WorsenedAnnual report
「However, the spread of new infections caused by new variants, prolonged supply constraints on semiconductors and other electronic components in overseas supply chains, and geopolitical effects related to the situation in Ukraine have intensified the rise in resource and material prices and component shortages, increasing uncertainty about the outlook. Cost of sales increased by ¥32,077 thousand from the previous fiscal year to ¥6,256,984 thousand. This was mainly due to surging raw material prices and other factors.」
The company explains that surging raw material prices and supply constraints on semiconductors and other electronic components worsened, and that higher raw material prices also contributed to the ¥32,077 thousand increase in cost of sales. - FY2022-Q3MaterialisedAnnual report
「Meanwhile, the company continues to face an uncertain outlook, as the progress of green inflation has driven up crude oil and other resource prices and raw material prices, while supply concerns associated with overseas lockdowns have caused delays in the delivery of semiconductors and other electronic components, with serious effects on production.」
The company states that the previously identified risks of surging raw material prices and supply constraints have materialised as delivery delays for semiconductors and other electronic components, seriously affecting production. - FY2022-Q2WorsenedAnnual report
「Order competition remains intense, and uncertainty continues, including the risk that surging raw material prices and supply constraints will persist for an extended period.」
The previously identified risks of raw material price volatility and procurement difficulties are explicitly described as continuing and potentially prolonged risks in the current business environment, owing to surging raw material prices and supply constraints. - FY2020First statedAnnual report
「Prices for key raw materials such as copper and aluminium, and key components such as outdoor units and compressors, may fluctuate or become difficult to procure depending on economic conditions, the production status of suppliers and other factors.」
The company identifies the risk of pressure on earnings if it cannot pass higher prices on to product prices or change procurement sources when prices rise or procurement becomes difficult.