Risk of Surging Raw Material and Component Prices and Procurement Disruptions
First written in FY2020. 5 of 9 entries say "Worsened", first in FY2022. Latest entry: FY2026.
Nichidai moved to the "Worse" side of this theme in 2021, the same year as the typical company in this theme.
The whole theme swung hardest in 2021: 39 of 63 companies on the "Worse" side.
30 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「In addition to the decline in gross profit resulting from lower revenue, the impact of higher material costs and other factors resulted in an ordinary loss of ¥292 million, compared with operating income of ¥133 million in the same period of the previous year.」
Higher material costs have appeared in actual results as a factor worsening profitability in the die business. Risks related to higher raw material and parts prices and procurement conditions continue. - FY2025WorsenedAnnual report
「Although production volumes in the Japanese automotive industry, a major customer industry for the Group, are recovering, they have not yet returned to previous levels. Concerns continue over a review of procurement and production strategies in global markets due to higher parts and materials costs resulting from increased U.S. tariffs.」
Higher U.S. tariffs are explicitly identified as a factor driving up parts and materials costs, adding concerns over a review of procurement and production strategies. Risks related to raw material and parts costs and procurement conditions are becoming more concrete. - FY2024-Q3WorsenedAnnual report
「Meanwhile, uncertainty continues in the global economy, including persistently high raw-material and energy prices due to the prolonged situation in Ukraine and a weaker yen, as well as an economic slowdown in China.」
Raw material and energy prices remain elevated against the backdrop of the situation in Ukraine and the weaker yen. The risk of higher raw material prices has continued from the previous quarter and is explicitly identified as a factor worsening procurement and manufacturing cost conditions. - FY2024-Q1RestatedAnnual report
「Meanwhile, uncertainty continues in the global economy, including soaring raw-material prices against the backdrop of the situation in Ukraine and other factors, as well as sharp foreign exchange movements.」
Soaring raw material prices continue to be identified as an actual operating-environment condition. Risks related to price increases and procurement conditions continue, although the disclosures do not indicate any significant change during the current quarter. - FY2023-Q3WorsenedAnnual report
「Soaring raw-material and energy prices associated with the situation in Ukraine and other factors continue, and uncertainty about the outlook for the global economy also persists.」
Raw material and energy prices remain elevated, and raw material price risk continues to be reflected in the actual operating environment. The impact of parts shortages also continues. - FY2023-Q1MaterialisedAnnual report
「In the Japanese automotive industry, which is a major customer industry for our Group, automobile sales worldwide remained sluggish due to parts supply shortages, including those caused by China's lockdowns associated with the spread of COVID-19, affecting the production volumes of Japanese automakers.」
The risk of parts procurement disruptions has materialized as parts shortages caused by lockdowns in China, affecting production volumes at automobile manufacturers. - FY2022WorsenedAnnual report
「In addition, the global economy remains uncertain due to instability in the international situation, including the situation in Ukraine, and resulting increases in raw material prices.」
Soaring raw material prices are identified as an actual operating-environment condition resulting from international instability, indicating that the risk of price increases has become more concrete and expanded. - FY2022-Q2MaterialisedAnnual report
「In addition to parts supply problems associated with the spread of COVID-19 in the ASEAN region, semiconductor shortages are having an impact, and production has been disrupted.」
The risk of disruptions in raw material and parts procurement has materialized as parts supply problems and semiconductor shortages in the ASEAN region, resulting in production disruptions. - FY2020First statedAnnual report
「The Group maintains a certain level of inventory of raw materials, parts and other items and procures them from multiple suppliers outside the Group. However, procurement of raw materials and parts may be disrupted by price increases and shortages resulting from market changes, or by disasters, bankruptcies and other events affecting suppliers, potentially affecting the Group's operating results and financial position through deteriorating product margins and production stoppages.」
The Company identifies as new key risks procurement disruptions involving raw materials and parts due to soaring prices, shortages, and disasters or bankruptcies at suppliers, along with the resulting potential deterioration in margins and production stoppages.