Price Competition and Rising Raw Material Prices

「Regarding profit, the Company reduced fixed costs through structural reforms, passed higher raw material costs and other increases through to selling prices, advanced automation and rationalization of production lines, and worked to reduce procurement costs. As a result, operating income was ¥6,769 million, up 60.7% year on year, and ordinary income was ¥6,130 million, up 107.3%.」

「As a result of efforts to reduce fixed costs through structural reforms, pass higher raw material costs on to selling prices, automate and rationalize production lines, and reduce procurement costs, operating income was ¥2.725 billion, up 26.9% year on year」

「On the earnings side, although operating rates declined for robots, specialty steel and other products, efforts to reduce fixed costs through structural reforms, pass higher raw material prices through to selling prices, automate and rationalize production lines, and reduce procurement costs resulted in operating profit of ¥9.773 billion, up 47.3% year on year.」

「As a result of reducing fixed costs through structural reforms, passing higher raw material prices through to selling prices, automating and rationalizing production lines, and reducing procurement costs, operating profit was ¥4.213 billion, up 79.8% year on year, and ordinary profit was ¥2.957 billion, up 103.7%.」

「On the earnings side, the company worked to pass higher raw material prices through to selling prices, automate and rationalize production lines, and reduce procurement costs, while the yen also weakened. However, in addition to the continued soaring raw material prices from the previous fiscal year, lower operating rates in robots, hydraulic equipment and other areas had a significant impact, resulting in operating profit of ¥2.342 billion, down 69.2% year on year, ordinary profit of ¥1.452 billion, down 79.4%, and profit attributable to owners of the parent for the quarter of ¥779 million, down 83.5%.」

「Regarding profit, the Company passed higher raw material costs through to selling prices, advanced automation and rationalization of production lines, and worked to reduce procurement costs. Although the yen remained weak, the continued rise in raw material prices from the previous fiscal year, together with a significant deterioration in operating rates in the robotics and hydraulic equipment businesses, resulted in operating income of ¥1,183 million, down 69.8% year on year, ordinary income of ¥754 million, down 77.1%, and quarterly net income attributable to owners of the parent of ¥356 million, down 83.9%.」

「On the other hand, operating profit was ¥3.645 billion, down 43.4% year on year, due to soaring steel and electricity prices and higher fixed costs.」

「In the Components business, although production adjustments affected part of the automotive and construction machinery sectors, demand in the industrial machinery and aftermarket sectors remained firm, and the company benefited from a recovery in overseas automotive demand, resulting in net sales of ¥79.998 billion, up 4.1% year on year. On the other hand, operating profit was ¥2.426 billion, down 44.2% year on year, due to soaring raw material and energy prices and higher fixed costs.」

「In the Components business, although production adjustments affected part of the automotive and construction machinery sectors, demand in the industrial machinery and aftermarket sectors remained firm, resulting in net sales of ¥38.790 billion, up 1.7% year on year. On the other hand, operating profit was ¥1.218 billion, down 42.1% year on year, due to the significant impact of soaring raw material and energy prices and other factors.」

「On the other hand, the operating margin declined by 0.2 percentage points from the initial plan of 6.8%, due to higher manufacturing costs and selling expenses, including ocean freight, resulting from soaring raw material and energy prices.」

「In the Components business, although production adjustments affected the automotive sector, demand recovered and expanded in the construction machinery, industrial machinery and aftermarket sectors, resulting in net sales of ¥117.340 billion, up 9.3% year on year. On the other hand, operating profit was ¥6.443 billion, down 12.5% year on year, as it was significantly affected by soaring raw material prices and other factors despite improved operating rates.」

「In the Components business, although production adjustments affected the automotive sector, demand recovered and expanded in the construction machinery, industrial machinery and aftermarket sectors, resulting in net sales of ¥76.844 billion, up 9.0% year on year. On the other hand, operating profit was ¥4.348 billion, down 6.5% year on year, as it was significantly affected by soaring raw material prices and other factors despite improved operating rates.」

「On the earnings side, in addition to improved operating rates resulting from increased sales and production, the company worked to pass higher raw material prices through to selling prices, improve productivity through automation and rationalization of production lines, and reduce procurement costs,」

「In response, the company is strengthening its VA and VE activities and bringing the production of key components in-house. It is also continuously implementing cost-reduction initiatives, including optimizing raw material purchasing and inventory volumes, reducing procurement costs through the standardization of designs and components, and improving productivity, while continuing to pass price increases through to customers.」

「In the Components business, net sales were ¥60.959 billion, down 15.7% year on year, due mainly to the impact of production cuts in the automotive and industrial machinery sectors associated with the spread of COVID-19. On the earnings side, operating profit was ¥1.018 billion, down 65.9% year on year, also affected by soaring raw material prices and other factors.」

「On the earnings side, although the company worked to improve productivity and reduce costs, the strong yen, persistently high raw material and energy prices, and higher labor costs put pressure on profitability, resulting in operating profit of ¥13.348 billion, down 12.8% year on year.」

「Although the Group worked to raise selling prices and reduce costs, the yen remained significantly strong, while higher raw material and energy prices, personnel expenses and other factors pressured profitability. Operating profit was ¥10.616 billion, down 13.0% year on year, ordinary profit was ¥9.527 billion, down 12.9%, and net income attributable to owners of the parent was ¥6.309 billion, down 12.5%.」

「Although the company worked to raise selling prices and reduce costs, the yen remained strong, while higher raw material and energy prices and labor costs put pressure on profitability. Operating profit was ¥7.481 billion, down 7.8% year on year, ordinary profit was ¥6.604 billion, down 6.6%, and profit attributable to owners of the parent for the quarter was ¥4.212 billion, down 6.3%.」

「On the earnings side, higher raw material and energy prices, as well as labor costs and other expenses, put pressure on profitability, resulting in operating profit of ¥3.426 billion, down 11.9% year on year.」

「On the earnings side, higher energy, logistics and labor costs, in addition to soaring raw material prices, put pressure on profitability, resulting in operating profit of ¥15.306 billion, down 5.1% year on year.」

「In the Machine Tools business, the company captured demand for cutting tools and robots in the automotive and industrial machinery sectors, resulting in net sales of ¥64.435 billion, up 0.9% year on year. On the earnings side, operating profit was ¥4.649 billion, down 5.8% year on year, due to soaring raw material prices as well as higher fixed and selling, general and administrative expenses associated with expanding development, sales and production capabilities.」

「In the Machine Tools business, the company captured demand for cutting tools and robots in the automotive and industrial machinery sectors, resulting in net sales of ¥42.752 billion, up 1.5% year on year. On the earnings side, however, operating profit was ¥2.884 billion, down 9.3% year on year, due to soaring raw material prices as well as higher fixed and selling, general and administrative expenses associated with expanding development, sales and production capabilities.」

「In the Machine Tools business, robots grew significantly, particularly overseas, resulting in net sales of ¥20.718 billion, up 7.5% year on year. On the earnings side, however, operating profit was ¥1.344 billion, down 2.2% year on year, due to soaring raw material prices as well as higher fixed and selling, general and administrative expenses associated with expanding development, sales and production capabilities.」

「In Other Businesses, sales were ¥14.733 billion, up 5.6% from the previous consolidated fiscal year, due to a recovery in demand for specialty steel, while operating income was ¥782 million, down 16.6%, owing to the impact of surging raw material prices.」

「In the Other businesses, net sales were ¥10.758 billion, up 2.9% year on year, reflecting a recovery in demand for specialty steel. However, operating profit was ¥619 million, down 11.3% year on year, due to the impact of soaring raw material prices.」

「Some raw materials have also become more expensive, which may adversely affect the performance of the Group.」