Higher Raw Material and Component Prices and Supply Disruptions

「The outlook remains uncertain due to volatility in financial and capital markets and supply chain disruptions resulting from developments in US trade policy and the situation in the Middle East, as well as soaring raw-material prices.」

「Prices of raw materials, particularly energy resources, remain elevated, putting upward pressure on procurement costs.」

「当社グループが主力とする農林業用機械業界におきましては、農業資材費及び原材料費の高騰に伴い、機械の出荷・生産実績が国内・輸出向けともに前中間連結会計期間より減少いたしました。」

「In Japan, the impact of price revisions resulting from surging agricultural material and raw material costs was evident. Overseas, shipments and production results declined as a reaction to the winding down of stay-at-home demand during the COVID-19 pandemic.」

「In the agricultural and forestry machinery industry, which is our group's core business, domestic shipments and production results declined due in part to the impact of price revisions resulting from surging agricultural material and raw material costs. Overseas, although demand declined following the end of stay-at-home demand during the COVID-19 pandemic, shipments and production results remained broadly flat.」

「当社グループが主力とする農林業用機械業界におきましては、国内では農業資材費及び原材料費の高騰に伴う価格改定の影響、海外ではコロナ下における巣ごもり需要の反動減などにより、国内外において出荷・生産実績は減少となりました。」

「To address surging prices for components and materials and delivery delays, we will continue working to stabilize the supply chain and respond by implementing timely and appropriate product price increases.」

「In the agricultural and forestry machinery industry, which is our group's core business, domestic shipments and production results declined due to delays in procuring materials and other factors.」

「However, uncertainty about the outlook continued because of the semiconductor shortage, monetary tightening in major countries including the United States, prolonged geopolitical tensions and the possible resurgence of inflationary pressure resulting from the recovery in Chinese demand.」

「Various downside risks resulting from a global economic slowdown continued, including a protracted situation in Ukraine, soaring raw-material prices and the reduction of monetary easing by developed countries, including the United States.」

「On the earnings side, operating profit was ¥651 million, down 27.2% year on year, due in part to deterioration in the gross profit margin caused by higher raw material costs.」

「Various downside risks to the outlook for the global economy continued, including the risk of the spread of new variants, soaring raw-material prices and supply constraints affecting semiconductors and other products.」

「Our group works to secure stable supplies of raw materials and components through multiple sourcing and global procurement. However, if supplies of raw materials and components become unstable due to surging prices, disasters, or other factors, our group's operating results and financial position could be affected.」

「In Japan, we responded to increased sales resulting from the effects of the management continuity subsidy policy and worked to minimize procurement risks in the supply chain.」

「Our group works to secure stable supplies of raw materials and components through multiple sourcing and global procurement. However, if supplies of raw materials and components become unstable due to surging prices, disasters, or other factors, our group's operating results and financial position could be affected.」