Product Price Volatility, Raw Material and Parts Shortages, and Intensifying Competition
First written in FY2016. 12 of 29 entries say "Worsened", first in FY2017. Latest entry: 2026-09-11.
Nikko moved to the "Worse" side of this theme in 2021, 3 years after the typical company in this theme (2018).
The whole theme swung hardest in 2022: 15 of 21 companies on the "Worse" side.
5 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Operating profit exceeded the plan as the company continued efforts to appropriately reflect increases in raw material and personnel costs in prices.」
The disclosure states that, as increases in raw material and personnel costs continued, progress in passing them through to selling prices led to a lower cost-of-sales ratio and higher operating profit. - FY2025-H1MitigatedAnnual report
「In terms of earnings, in addition to higher net sales, the passing through of increases in raw material and other costs to selling prices was also progressing, resulting in consolidated operating profit of ¥1,280 million, up 374.9% year on year.」
The disclosure states that the pass-through of increases in raw material and other costs to selling prices is progressing, indicating progress in addressing the previously identified risk of higher costs. - FY2023WorsenedAnnual report
「Under these circumstances, the group was affected by higher prices for raw materials, including steel, higher prices for purchased components, and longer lead times. In terms of earnings, in addition to higher raw material prices, increased research and development expenses related to decarbonization, higher development costs for global products and other items, and increased personnel expenses resulted in consolidated operating profit of ¥399 million, down 58.8% year on year.」
In addition to higher prices and longer lead times for raw materials and purchased components, increased research and development expenses, development costs, and personnel expenses contributed to full-year consolidated operating profit of ¥1,028 million, down 49.9% from the previous fiscal year. - FY2023-Q3WorsenedAnnual report
「In terms of earnings, in addition to higher raw material prices, increased research and development expenses related to decarbonization, higher development costs for global products and other items, and increased personnel expenses resulted in consolidated operating profit of ¥367 million, down 64.2% year on year.」
Higher raw material prices, longer lead times for purchased items, and increases in research and development expenses, development costs, and personnel expenses continued. Consolidated operating profit fell 64.2% year on year, indicating that the impact of higher costs and supply constraints is expanding. - FY2023-Q2WorsenedAnnual report
「Under these circumstances, the group was affected by higher prices for raw materials, including steel, higher prices for purchased components, and longer lead times. In terms of sales, road companies, the main users of asphalt plants, showed signs of caution over equipment renewals, partly due to the impact of higher crude oil prices. Consolidated net sales for the six months ended the second quarter were ¥18,760 million, down 1.3% year on year. In terms of earnings, in addition to higher raw material prices, increased research and development expenses related to decarbonization, higher development costs for global products and other items, and increased personnel expenses resulted in consolidated operating profit of ¥399 million, down 58.8% year on year.」
Higher prices and longer lead times for raw materials, including steel, and purchased components affected results. Increases in research and development expenses, development costs, and personnel expenses also contributed to a 58.8% year-on-year decline in operating profit. The impact of cost increases and supply constraints is expanding. - FY2023-Q1WorsenedAnnual report
「In terms of earnings, the impact of higher steel and other prices, as well as increases in personnel and research and development expenses, resulted in consolidated operating profit of ¥183 million, down 51.1% year on year.」
In addition to higher steel and other prices, increases in personnel and research and development expenses contributed to the 51.1% year-on-year decline in operating profit. - FY2022-Q3WorsenedAnnual report
「During the nine months ended the third quarter, the global economy was on a recovery trend, but restrictions on economic activity due to the worldwide spread of COVID-19 continued. Rising prices spread as a result of higher resource prices, including crude oil, supply constraints, and strained logistics. With inflation concerns emerging in the United States and discussions of reduced monetary easing and higher interest rates, the economy faced increasingly difficult decisions.」
In addition to the previously identified risk of rising materials and logistics prices, increases in resource prices such as crude oil, supply constraints, strained logistics, rising prices, and inflation concerns have continued and intensified. - FY2022-Q2WorsenedAnnual report
「The global economy, which began moving toward normalization as vaccination progressed, is being forced to confront new challenges, including higher resource and materials prices caused by supply constraints, strained logistics, and labor shortages. In terms of earnings, higher research and development expenses related to decarbonization, higher raw material costs, including steel, and increased personnel expenses resulted in consolidated operating profit of ¥968 million, down 3.1% year on year.」
Rising resource and materials prices, strained logistics, and labor shortages were identified, while higher raw material costs, including steel, and personnel expenses resulted in a 3.1% year-on-year decline in operating profit. - FY2022-Q1WorsenedAnnual report
「The situation remains uncertain, with mixed positive and negative factors, including rising resource and materials prices in anticipation of the post-COVID-19 period and more active economic activity in countries where vaccination is progressing, prompting concerns about inflation.」
In relation to the previously identified risk of rising materials and logistics prices, increases in resource and materials prices and concerns about inflation have been newly identified. - FY2021WorsenedAnnual report
「Cost of sales increased by ¥2,163 million from the previous consolidated fiscal year to ¥27,675 million, while the cost-of-sales ratio rose 0.5 percentage points. This was mainly due to increases in subcontracted processing costs and materials costs.」
The cost-of-sales ratio rose 0.5 percentage points due to higher subcontracted processing and materials costs, with the impact of higher costs reflected in the current-period results. - FY2021-Q2RestatedAnnual report
「During the six-month period ended the second quarter of the current consolidated fiscal year, there were no new business risks or material changes to the business risks described in the previous fiscal year's Annual Securities Report.」
The company maintains its previous positioning through a comprehensive statement that there have been no material changes in the risks related to product price fluctuations, shortages of raw materials and components, and intensifying competition. - FY2020-Q3RestatedAnnual report
「Issues such as concerns over construction delays caused by rising materials and logistics costs and labor shortages remain unresolved, and the situation remains uncertain.」
The company has reiterated its assessment that cost and supply risks associated with rising materials and logistics prices and labor shortages remain unresolved. - FY2020-Q2RestatedAnnual report
「Issues such as concerns over construction delays caused by rising materials and logistics costs and labor shortages remain unresolved, and the situation remains uncertain.」
The company has reiterated its assessment that cost and supply risks associated with rising materials and logistics prices and labor shortages remain unresolved. - FY2020-Q1RestatedAnnual report
「Issues such as concerns over construction delays caused by rising materials and logistics costs and labor shortages remain unresolved, and the situation remains uncertain.」
The company has reiterated its assessment that cost and supply risks associated with rising materials and logistics prices and labor shortages remain unresolved. - FY2019WorsenedAnnual report
「As disclosed on 30 October 2018, the operating profit margin on net sales was initially expected to be 4.9%, but fell 1.5 percentage points year on year to 4.5%. This was mainly due to higher freight rates and increases in material costs, including steel.」
Higher freight rates and material costs, including steel, pushed down the operating profit margin, with the impact of rising costs becoming evident in results. - FY2019-Q3WorsenedAnnual report
「Labor shortages in the construction-related industry are causing construction delays, while issues such as persistently high procurement prices for construction materials and rising labor costs also remain unresolved, and the situation remains uncertain.」
In addition to previously identified persistently high procurement prices, rising labor costs have been explicitly identified as an unresolved issue, expanding the risk of higher costs. - FY2019-Q2RestatedAnnual report
「The labor shortage has not improved, while issues such as persistently high procurement prices also remain unresolved, and the situation remains uncertain.」
The company has reaffirmed its previous risk assessment that labor shortages and persistently high procurement prices remain unresolved. - FY2019-Q1RestatedAnnual report
「Issues such as concerns over construction delays caused by rising materials and logistics costs and labor shortages remain unresolved, and the situation remains uncertain.」
The disclosure states that increases in materials and procurement-related prices remain unresolved, maintaining the previous risk assessment regarding product and raw material prices. - FY2018-Q2RestatedAnnual report
「However, issues such as construction delays caused by labor shortages and persistently high procurement prices remain unresolved, and uncertainty continues.」
The company states that persistently high procurement prices remain unresolved, maintaining its previous risk assessment regarding materials and procurement prices. - FY2018-Q1RestatedAnnual report
「During the first quarter of the current consolidated fiscal year, there were no newly arising business or other risks, and no material changes to the business or other risks described in the securities report for the previous fiscal year.」
The company maintains its previous position through a comprehensive statement that there have been no material changes regarding the risks related to product prices, shortages of raw materials and parts, and intensifying competition. - FY2017WorsenedAnnual report
「Higher prices for construction materials such as steel are also a concern, and developments in each country require close attention because of the uncertain international situation.」
In addition to the previous risks related to product price fluctuations and raw materials, the company identifies higher prices for construction materials such as steel as a specific concern. - FY2016First statedAnnual report
「Product price fluctuations are caused by various factors, including short-term changes in demand, shortages of specific parts and raw materials, unstable economic conditions, revisions to import regulations, revisions to foreign exchange control laws and intensifying competition.」
The company recognizes the risk of price fluctuations arising from multiple factors, including demand, components, economic conditions, regulations and competition.