Fluctuations in Housing Building Materials Profit Margins Driven by Lumber and Plywood Prices
First written in FY2016. 11 of 22 entries say "Materialised", first in FY2018-Q2. Latest entry: FY2026.
Taihei Machinery Works,Limited moved to the "Worse" side of this theme in 2017, 4 years before the typical company in this theme (2021).
The whole theme swung hardest in 2018: 7 of 8 companies on the "Worse" side.
6 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Net sales were ¥956 million, down 13.1% year on year, while operating income was ¥32 million, compared with an operating loss of ¥8 million in the same period of the previous year, partly as a result of our cost-reduction measures.」
Although profitability risks from higher prices for lumber and other materials remain in the housing materials business, cost-reduction measures improved results from an operating loss to operating income of ¥32 million. - 2026-05-13MitigatedRevisions to earnings forecasts
「Operating income was ¥32 million, compared with an operating loss of ¥8 million in the same period of the previous year, partly as a result of our cost-reduction measures.」
In the housing materials business, cost-reduction measures improved results from an operating loss to operating income, partly mitigating the impact of higher costs on margins. - FY2024MaterialisedAnnual report
「In addition to higher packing and freight costs due to inflation, the company was affected by bad-debt expenses arising from the failure of business partners, resulting in an operating loss of ¥62 million, compared with operating income of ¥19 million in the same period last year.」
In the housing materials business, higher costs due to inflation materialized as lower profitability and an operating loss. - FY2024-Q3MaterialisedAnnual report
「In terms of profit and loss, in addition to lower profitability due to higher costs resulting from inflation and other factors, the company was affected by the failure of some business partners due to cash-flow difficulties after repayments began on zero-interest, zero-guarantee loans provided as a COVID-19 measure. As a result, it posted an operating loss of ¥47 million, compared with operating income of ¥25 million in the same quarter of the previous year.」
Continued cost increases resulting from inflation and other factors led to lower profitability in the housing materials business, resulting in an operating loss of ¥47 million. - FY2024-Q2MaterialisedAnnual report
「In addition to lower profitability due to higher costs resulting from inflation and other factors,」
The increase in costs resulting from inflation and other factors was reflected in results as lower profitability in the housing materials business. - FY2024-Q1MaterialisedAnnual report
「The company had pursued cost reductions, including a review of production processes, but was unable to absorb the decline in profit due to lower revenue and the increase in costs resulting from inflation and other factors.」
The increase in costs resulting from inflation and other factors could not be absorbed through cost reductions and materialized as lower profit in the housing materials business. - FY2023MaterialisedAnnual report
「In addition to a decline in the order value per project, manufacturing costs increased because, although procurement prices for key materials had passed their peak, inventory procured at peak prices remained on hand and prices for auxiliary materials and other inputs rose further.」
Higher-cost inventory and rising prices for auxiliary materials increased manufacturing costs, which was reflected in results as lower margins in the housing materials business. - FY2023-Q3MaterialisedAnnual report
「Although the increase in procurement prices for key materials had passed its peak, manufacturing costs increased because inventory procured at peak prices remained on hand and prices for auxiliary materials and other inputs rose further.」
High-cost inventories of key materials and higher prices for auxiliary materials resulted in an increase in manufacturing costs. - FY2023-Q1WorsenedAnnual report
「Meanwhile, costs remained under pressure as procurement prices rose more sharply than expected.」
In the housing materials business, procurement prices for key materials rose more than expected. Although revenue increased, operating profit fell 13.4% year on year, indicating that the previous mitigation from passing on higher prices was insufficient. - FY2022MitigatedAnnual report
「Revenue and profit increased due in part to the company's ability to pass soaring key-material prices on to order values.」
Amid continued increases in the prices of key materials such as lumber, the company was able to pass the increases on to order values, mitigating their impact on the profitability of the housing materials business. - FY2022-Q3MitigatedAnnual report
「Revenue and profit increased due in part to the company's ability to pass soaring key-material prices on to order values.」
The company states that it was able to pass soaring key-material prices on to order values, mitigating the impact of higher material prices on margins. - FY2022-Q2MitigatedAnnual report
「The housing construction materials business reported higher sales and higher profit, owing in part to an increase in housing starts from the previous year and the successful pass-through of surging prices for major materials to order prices.」
The company states that it was able to pass the soaring prices of key materials on to order values, partially mitigating the impact of higher material prices on profitability. - FY2022-Q1MitigatedAnnual report
「The housing materials business posted higher revenue and profit, supported by an increase in housing starts year on year and the beginning of its ability to pass soaring key-material prices on to order values.」
Although prices for key materials remain high, the company began passing the increases on to order values, and states that the housing materials business achieved higher revenue and profit. - FY2021MaterialisedAnnual report
「The company primarily procures dimensional lumber, a key material, from overseas, but overseas demand has increased and procurement prices have risen sharply. It has also been difficult to pass the higher costs on to order prices, resulting in lower profitability.」
A sharp increase in procurement prices due to higher demand for lumber, together with the difficulty of passing on higher costs, materialized as lower profitability in the housing materials business. - FY2021-Q3WorsenedAnnual report
「The company primarily procures dimension lumber, a key material, from overseas. Market conditions are becoming more challenging, with overseas demand increasing and procurement prices trending higher.」
The company states that procurement prices for dimensional lumber, a key material for the housing materials business, are trending higher due to increased overseas demand. - FY2019MaterialisedAnnual report
「Conditions remained challenging in terms of costs, including the upward trend in raw material prices.」
Continued increases in the prices of lumber and other raw materials became a factor depressing margins and operating income in the housing materials business. - FY2019-Q3RestatedAnnual report
「Conditions remained challenging in terms of costs, including the upward trend in raw material prices.」
The upward trend in raw material prices and cost pressure continue in the housing materials business. - FY2019-Q1MaterialisedAnnual report
「Raw material prices have also been trending higher, and cost conditions remain challenging.」
The continued upward trend in prices for raw materials, including key materials for the housing materials business, is described as creating cost pressure. - FY2018MaterialisedAnnual report
「Conditions remained challenging, with procurement prices rising across the board for materials, including dimension lumber, a key material.」
Higher prices for lumber and other materials actually occurred in the housing materials business and became a factor depressing margins and operating income. - FY2018-Q2MaterialisedAnnual report
「Raw material prices have risen, partly because of the impact of forest fires in Canada, the source of imports of dimension lumber, a key material.」
Higher prices for key materials used in the housing materials business have materialized as the previously identified risk of fluctuations in lumber and other material prices. - FY2017RestatedAnnual report
「This product has high material costs, and its margins are significantly affected by fluctuations in lumber and plywood prices, making this a negative factor for productivity improvement.」
The company reiterates the margin risk for 2x4 panels arising from fluctuations in lumber and plywood prices. - FY2016First statedAnnual report
「This product has high material costs, and its margins are significantly affected by fluctuations in lumber and plywood prices, making this a negative factor for productivity improvement.」
The material costs of 2x4 panels are high, and fluctuations in lumber and plywood prices affect margins.