Risk of margin pressure from rising component and raw material prices
First written in FY2022. 3 of 6 entries say "Restated". Latest entry: FY2025.
The whole theme swung hardest in 2022: 122 of 167 companies on the "Worse" side.
- FY2025MitigatedAnnual report
「Because the Group manufactures custom-built equipment, it reflects component prices in equipment prices at the quotation stage. It also works to contain purchase prices through negotiations with suppliers. In addition, the sales team negotiates to include provisions in equipment sales contracts allowing renegotiation if component prices fluctuate sharply beyond expectations during the period from order receipt to procurement.」
As measures to address higher component prices, the Company specifically disclosed reflecting them in quoted prices, negotiating with suppliers and including renegotiation provisions for sharp price fluctuations. - FY2024MitigatedAnnual report
「Materials account for a high proportion, approximately 60% to 70%, of our manufacturing costs, and higher component prices have a significant effect on our performance. Since the previous fiscal year, the 31st fiscal year, we have been able to enter into contracts at selling prices that reflect anticipated price increases for components, enabling us to secure a certain profit margin.」
The Company explains that materials account for approximately 60% to 70% of costs and that it has entered into contracts at selling prices reflecting anticipated price increases, thereby securing a certain profit margin. - FY2024-Q3RestatedAnnual report
「During the third quarter cumulative consolidated period, Japan's economy was on a gradual recovery trend, despite some signs of stagnation. However, uncertainty about the outlook continued due to the effects of global monetary tightening and concerns about the Chinese economy and the situation in the Middle East.」
Uncertainty stemming from global monetary tightening, the Chinese economy and the situation in the Middle East has continued in the external environment related to the risk of higher component and raw material prices. - FY2023-Q3RestatedAnnual report
「During the current cumulative quarterly period, the domestic economy continued to recover gradually, while energy prices and raw material costs continued to rise.」
The Company reconfirmed its view that energy prices and raw material costs continue to rise. - FY2023-Q1RestatedAnnual report
「Although the domestic economy continued to show a gradual recovery, energy prices and raw material costs rose, while component prices and lead times continued to increase.」
The Company reconfirmed its view that energy prices and raw material costs, as well as component prices, continue to rise. - FY2022First statedAnnual report
「Materials account for a high proportion, approximately 60%, of our manufacturing costs, and higher component prices have a significant effect on our performance. The earnings forecast for the following fiscal year anticipates a deterioration in profit margins due to higher costs.」
Component prices have already risen, and because materials account for approximately 60% of manufacturing costs, the Company disclosed the possibility that this could cause profit margins to deteriorate in the following fiscal year.