Metal and Resin Raw Material Price Volatility

「The sharp rise in purchase prices for crude-oil-derived products and other items led to consequences including the need to revise the prices in catalogs that had only recently been published.」

「In addition to changes in U.S. tariff policy since last year, economic uncertainty has increased since March 2026 due to soaring crude oil prices following the deterioration of the situation in the Middle East and concerns over the supply of petrochemical products.」

「Amid continued instability, including soaring raw material and product prices due to foreign exchange movements and concerns over rising energy prices, the substantial tariff increases announced by the United States during the period have become a source of economic concern.」

「In addition, expenses such as costs related to the change of corporate name and amortization of molds for new products, together with higher purchase prices for raw materials and products, weighed on profit and loss.」

「The Interior segment's sales remained generally solid as the company pursued initiatives including the revival of large-scale in-person trade shows and the launch of new products, and sales of the new automatic wallpaper pasting machine launched in December 2023 also progressed well. On the earnings front, however, costs associated with the change of corporate name and depreciation of assets used to manufacture new products weighed on results, while higher raw-material and product procurement prices also affected earnings.」

「The surge in consumer goods and construction material prices has slowed new housing starts in the company's main market, newly built homes. In addition, conditions remain uncertain, with procurement lead times for raw materials and products continuing to lengthen.」

「In addition, the profitability of imported products continued to deteriorate due to the weaker yen.」

「In addition to soaring purchase prices for raw materials and products due to higher crude oil prices and the rapid depreciation of the yen, significant delays in procurement lead times, particularly for electrical and electronic components, have continued.」

「The Company is reviewing selling prices as purchase prices for raw materials and products continue to rise. However, if price reviews are delayed or lead to lower sales, this may adversely affect the Company's operating results. Delays in the delivery of procured raw materials have also occurred, and the Company is taking measures such as increasing inventories, but if delivery lead times lengthen further, this may adversely affect production and sales plans.」

「However, with respect to (8) the risk of fluctuations in raw material prices and procurement difficulties, that risk has begun to materialize. If raw material prices continue to rise while price pass-through does not progress, or if production plans and the related sales plans must be revised due to procurement difficulties, this may adversely affect the Company's operating results.」

「The Company's products use many components made from metal and resin, and their purchase prices may be affected by fluctuations in market prices. If raw material prices rise in the future due to a significant depreciation of the yen, higher crude oil prices, supply and demand conditions or other factors, this may adversely affect the operating results of the Company Group. In addition, the COVID-19 pandemic has had an international impact on raw material procurement, and if these effects persist, they may adversely affect the operating results of the Company Group.」

「If raw material prices rise due to supply and demand conditions or other factors, this may adversely affect the Company's operating results.」

「If raw material prices rise due to supply and demand conditions or other factors, this may adversely affect the Company's results.」