Risk of soaring steel prices and ocean freight costs
First written in FY2021. 18 of 22 entries say "Materialised", first in FY2022-Q1. Latest entry: FY2027-H1.
Takeuchi Mfg. moved to the "Worse" side of this theme in 2021, 1 year before the typical company in this theme (2022).
0 other companies' latest entry also says "Materialised".
- FY2027-H1MaterialisedAnnual report
「There were factors reducing profit, including a ¥1.728 billion reduction in profit due to U.S. tariffs (comprising a ¥7.684 billion increase in tariff costs, ¥3.331 billion in pass-through to prices, and ¥2.625 billion in tariff refunds) and higher delivery costs due to the rise in crude oil prices, but」
The risk of changes in tariff rates materialized as a ¥1.728 billion reduction in profit after a ¥7.684 billion increase in U.S. tariff costs, ¥3.331 billion in pass-through to prices, and ¥2.625 billion in tariff refunds. In addition, higher delivery costs due to the rise in crude oil prices also reduced profit. - FY2026MaterialisedAnnual report
「¥3,167 million reduction in earnings due to U.S. tariffs (of the ¥5,138 million increase in tariff costs, ¥1,971 million was passed on through prices)」
The previously identified risk of changes in tariff rates materialized as U.S. tariff costs of ¥5,138 million, price pass-through of ¥1,971 million and a net reduction in earnings of ¥3,167 million. - 2026-04-24MaterialisedGeneral Meetings of Shareholders
「¥3,167 million reduction in earnings due to U.S. tariffs (of the ¥5,138 million increase in tariff costs, ¥1,971 million was passed on through prices)」
The company reports that fluctuations in tariff rates have materialized in actual results, with U.S. tariffs becoming a factor reducing profit. - FY2025WorsenedAnnual report
「The Group exports construction equipment overseas, including to Europe and North America, by sea. A rise in logistics costs such as ocean freight, or changes in tariff rates, could affect the Group's performance.」
In addition to conventional risks involving steel prices and ocean freight, changes in tariff rates were added as an explicit risk. Increases in raw material prices, component procurement costs and valuation losses on raw material inventories were also identified as actual factors. - FY2025-H1MaterialisedAnnual report
「This was mainly due to the impact of the weaker yen when inventories held by the U.S., U.K. and French sales subsidiaries in local currencies were translated into yen, the longer inventory holding period required for logistics because of maritime shipments rerouted around the Red Sea, and the buildup of finished-product inventories at the U.S. sales subsidiary to support sales expansion, among other factors.」
The maritime transportation risk materialized as longer logistics periods resulting from rerouting around the Red Sea and higher product inventories. Merchandise and products increased by ¥1,422.8 million from the end of the previous consolidated fiscal year, while total inventories increased by ¥1,804.5 million. - FY2025-Q1MaterialisedAnnual report
「This was mainly due to the impact of the weaker yen when inventories held by the U.S., U.K. and French sales subsidiaries in local currencies were translated into yen, the longer inventory holding period required for logistics because of maritime shipments rerouted around the Red Sea, and the buildup of finished-product inventories at the U.S. sales subsidiary in anticipation of higher full-year unit sales, among other factors.」
The company explained that the maritime transportation risk materialized in the form of longer logistics inventory periods resulting from rerouting around the Red Sea, which became a factor behind higher merchandise and product inventories. - FY2024MaterialisedAnnual report
「Although higher raw material prices, depreciation and labor costs at the U.S. plant, which began operations in September 2022, and the Aoki Plant, which began operations in September 2023, were factors reducing earnings, operating profit increased 66.3% year on year to ¥35,296 million due to higher net sales, product price increases, lower transportation costs and the impact of the weaker yen,」
The company explained that higher raw material prices continued to reduce full-year earnings, while lower transportation costs were offset by higher sales, price increases and the impact of the weaker yen. - FY2024-Q3MaterialisedAnnual report
「Although higher raw-material prices and depreciation, labor costs and other expenses at the US plant that began operations in September 2022 and the Aoki plant that began operations in September 2023 were factors reducing profit, increased sales volume, product price increases, lower freight costs and the impact of yen depreciation resulted in operating profit of ¥25,621 million, up 83.6% year on year,」
Higher raw-material prices continued to reduce profit. Depreciation and labor costs at the US and Aoki plants also became factors reducing profit, but increased sales, price increases, lower freight costs and the impact of yen depreciation resulted in operating profit rising 83.6% year on year. - FY2024-Q2MaterialisedAnnual report
「In terms of profit, although higher raw-material prices and depreciation, labor costs and other expenses at the US plant that began operations in September 2022 were factors reducing profit, increased sales volume, product price increases, lower freight costs and the impact of yen depreciation resulted in operating profit of ¥16,969 million, up 81.9% year on year, and ordinary profit of ¥17,072 million, up 65.1% year on year.」
Higher raw-material prices continued to reduce profit. Freight costs declined, while increased sales, price increases and the impact of yen depreciation resulted in operating profit rising 81.9% year on year. - FY2024-Q1MaterialisedAnnual report
「Although higher raw-material prices and depreciation, labor costs and other expenses at the US plant that began operations in September 2022 were factors reducing profit, increased sales volume, product price increases, lower freight costs and the impact of yen depreciation resulted in operating profit of ¥8,542 million, up 59.5% year on year,」
Higher raw-material prices actually reduced profit during the first quarter. Freight costs declined, while increased sales, price increases and the impact of yen depreciation resulted in operating profit rising 59.5% year on year. - FY2023MaterialisedAnnual report
「Although higher raw-material prices and freight costs were factors reducing profit, higher revenue from increased sales volume, product price increases and the impact of yen depreciation resulted in operating profit of ¥21,221 million, up 19.5% year on year,」
Higher raw-material prices and freight costs actually reduced full-year profit. The company explains that the impact was absorbed by higher sales, price increases and yen depreciation. - FY2023-Q3MaterialisedAnnual report
「Although higher revenue from increased sales volume, product price increases and the impact of yen depreciation were factors boosting profit, higher raw-material prices and freight costs resulted in operating profit of ¥13,952 million, down 1.5% year on year,」
Higher raw-material prices and freight costs actually reduced profit, and operating profit declined 1.5% year on year despite profit-boosting factors from higher sales, price increases and yen depreciation. - FY2023-Q2MaterialisedAnnual report
「In terms of profit, although higher revenue from increased sales volume, product price increases and the impact of yen depreciation were factors boosting profit, higher raw-material prices and freight costs resulted in operating profit of ¥9,328 million, down 6.3% year on year,」
Higher raw-material prices and freight costs actually caused operating profit to decline, outweighing the profit-boosting factors of higher sales, price increases and yen depreciation. - FY2023-Q1MaterialisedAnnual report
「Although higher raw-material prices and freight costs were factors reducing profit,」
Higher raw-material prices and freight costs actually reduced profit during the current quarter. The company states that the impact was absorbed by increased sales volume, product price increases and the impact of yen depreciation. - FY2022WorsenedAnnual report
「The company is in a position where it must anticipate higher raw-material prices and ocean freight rates than before, and forecasts higher revenue but lower profit for consolidated results in the next fiscal year.」
Higher raw-material prices and freight costs emerged as factors reducing profit in the current fiscal year, and the company expects raw-material prices and ocean freight rates to rise further in the next fiscal year, indicating an increasing impact from these risks. - FY2022-Q3MaterialisedAnnual report
「Although the company continued to be affected by logistics congestion at ports and a shortage of trucks for inland transportation during the third quarter,」
Congestion in port logistics and a shortage of trucks for inland transportation continued during the third quarter. Higher manufacturing costs and freight costs were also described as factors reducing profit. - FY2022-Q2MaterialisedAnnual report
「In terms of profit, although higher manufacturing costs, freight costs and provisions for product warranties were factors reducing profit, the impact was offset by higher revenue and product price increases,」
Higher manufacturing costs, freight costs and provisions for product warranties actually reduced profit in the first half. Product price increases and other measures are described as factors offsetting the impact. - FY2022-Q1MaterialisedAnnual report
「Although higher container rates, increased freight costs accompanying higher shipment volume and increased provisions for product warranties were factors reducing profit,」
The increase in ocean-transport-related costs identified as a risk in the previous period has become an actual factor reducing profit through higher container rates and freight costs. Freight costs increased from ¥835 million to ¥1,331 million. - FY2021First statedAnnual report
「Risks include deteriorating profitability due to higher steel prices and ocean freight rates.」
The company recognizes market fluctuations in the price of steel, a key raw material, as a risk, and cites production-line rationalization, cost reductions and sales-price reviews as countermeasures.