Rising Prices for Raw Materials and Components, Procurement Difficulties, and Supply Chain Disruptions

「The business environment surrounding the Group remained challenging, as increases in labor costs and parts prices continued.」

「There is no shortage of adverse factors, including shortages of imported raw materials such as crude oil and naphtha and higher fuel costs associated with rising tensions in the Middle East, global supply chain disruptions resulting from continued deterioration in Japan-China relations, uncertainty surrounding U.S. trade policy, worsening labor shortages, higher interest rates, sharp exchange-rate fluctuations, and increases in various costs, including labor costs.」

「The business environment surrounding the Group remained challenging, as increases in labor costs and parts prices continued.」

「The operating environment remained difficult as raw material prices stayed high and labor costs and component prices continued to rise.」

「Although we worked to establish appropriate price levels, the operating environment remained extremely difficult as the effects of higher labor costs and persistently high raw material prices and energy costs continued. Specialty-vehicle sales exceeded those of the previous consolidated fiscal year, partly because the certification issue involving the chassis for truck-mounted aerial work platforms, which arose in the previous consolidated fiscal year, had been resolved.」

「The operating environment remained difficult as chassis supply challenges continued, while procurement costs rose due to higher wages and energy costs, among other factors. Specialty-vehicle sales increased from the previous fiscal year, partly because sales carried over from the previous fiscal year were recognized following resolution of the certification issue involving the chassis for truck-mounted aerial work platforms.」

「Although the component procurement risks that had emerged during the current consolidated fiscal year had been almost resolved, certification of the chassis for our core truck-mounted aerial work platforms was delayed in the fourth quarter, while the effects of persistently high raw material prices and energy costs also continued.」

「Although the component procurement risks that had emerged in the previous fiscal year had been almost resolved, the operating environment remained difficult as the effects of persistently high raw material prices and energy costs continued.」

「Although the component procurement risks that had emerged in the previous fiscal year had been almost resolved, the operating environment remained difficult as the effects of persistently high raw material prices and energy costs continued. Sales of specialty vehicles declined year on year due to supply delays associated with truck manufacturers' model changes, among other factors.」

「Although the component procurement risks that had emerged in the previous fiscal year showed signs of improvement, the operating environment remained difficult as raw material prices continued to rise. Sales of specialty vehicles declined from the previous fiscal year due to chassis supply constraints associated with truck manufacturers' model changes, among other factors.」

「Amid continuing disruption in the procurement of many components, including semiconductor-related components, which had emerged as an issue in the previous fiscal year, a supply problem also arose involving the chassis for our core truck-mounted aerial work platforms, resulting in an extremely difficult operating environment amid strong headwinds.」

「In addition to sharp increases in raw material prices, particularly steel and fats and oils, utility costs, including electricity and gas, also rose substantially. Although we implemented cost-improvement and selling-price improvement initiatives to absorb these increases, we were unable to absorb them sufficiently during the nine-month period of the current consolidated fiscal year, resulting in lower profit year on year.」

「As for profit, we worked to reflect the sharp rise in costs, including soaring steel and raw material prices, in selling prices, but were unable to absorb the increase sufficiently during the period. In addition, delays in the normalization of the supply chain and disruptions in the supply of truck chassis resulted in difficult conditions.」

「However, difficult conditions continued, including further increases in crude oil and raw material prices due to the prolonged situation in Ukraine, disruptions in parts supplies caused by supply chain turmoil resulting from the lockdown in Shanghai, and rising prices accompanying the rapid depreciation of the yen.」

「The domestic and overseas economies remained uncertain amid global supply chain disruptions, including prolonged semiconductor shortages and delays in component supplies that reduced or halted factory operations, higher costs from rising crude oil and raw material prices, and geopolitical risks related to the situation in Ukraine and elsewhere.」

「However, the impact on production from disruptions in the component supply network, which had been a concern since the second quarter of the consolidated fiscal period, has now materialized.」

「Looking ahead, although a recovery in economic activity is expected as the COVID-19 vaccination rate rises and the economy adapts to living with the virus, concerns remain, including cost increases resulting from shortages of semiconductors and higher crude oil and raw material prices, as well as reduced or suspended plant operations due to disruptions in parts supplies from Southeast Asia.」

「Looking ahead, although a recovery in economic conditions is expected as COVID-19 vaccinations become widespread and take effect, concerns remain, including cost increases resulting from semiconductor shortages and higher raw material prices.」

「These sharp price increases and procurement difficulties will raise the manufacturing cost of products. Although our group is working to reflect these increases in selling prices, it may not always be able to pass the full increase in manufacturing costs on to customers. In addition, production may be reduced and manufacturing costs may rise because of supply chain disruptions, which could affect the group's operating results and financial position.」