Fluctuations in Raw Material Prices

「Risks including higher costs and logistics disruptions caused by further instability in the Middle East also remain.」

「In addition to rising costs and logistics disruptions caused by increasing instability in the Middle East, U.S. tariff measures and other factors continue to pose risks.」

「In the automotive industry, to which our Group belongs, domestic vehicle sales declined due to factors including the suspension of shipments of certain vehicle models following certification irregularities. Overseas vehicle sales generally increased, although trends varied by market. Meanwhile, persistently high raw material prices, rising energy costs and logistics disruptions caused by instability in the Middle East continued to pose risks.」

「Regarding profit, the effects of price pass-through from the previous fiscal year and the stabilization of operations, particularly in North and South America, continued, but profit declined as a result of lower revenue in China, while raw material prices, labor costs and energy costs continued to rise.」

「Our Group seeks to minimize the risk associated with fluctuations in raw material prices by synchronizing them as closely as possible with our customers and suppliers.」

「Although the impact of higher raw material prices, freight and labor costs, and energy costs continued, profitability improved as price pass-through progressed and operating conditions stabilized, resulting in operating income of ¥5,499 million (compared with an operating loss of ¥278 million in the same period of the previous year).」

「Regarding profit, although the impact of higher raw material prices, freight and labor costs, and energy costs continued, profitability improved as price pass-through progressed and operating conditions stabilized. Operating income therefore rose to ¥3,187 million (compared with an operating loss of ¥910 million in the same period of the previous year).」

「Regarding profit, although the impact of higher raw material prices, freight and labor costs, and energy costs continued, profitability improved as price pass-through progressed and operating conditions stabilized. As a result, operating income increased to ¥1,112 million, up 737.1% year on year, and ordinary income increased to ¥1,054 million, up 172.0%.」

「Profit was affected by higher variable costs including material and logistics costs, deteriorating labor costs due to inflation and difficulties securing personnel, and higher fixed costs due to rising utility costs against the backdrop of the Russia-Ukraine conflict and other factors. The delayed pass-through of these cost increases resulted in an operating loss of ¥278 million, compared with operating profit of ¥2,915 million in the same period of the previous year.」

「Regarding profit, the delay in passing on higher material, logistics and labor costs to prices resulted in an operating loss of ¥910 million (compared with operating income of ¥3,416 million in the same period of the previous year).」

「On the cost side as well, conditions remain such that the outlook cannot yet be regarded as secure, due to soaring raw material prices and continued energy price increases resulting from the prolonged Russia-Ukraine conflict.」

「Regarding profit, in addition to the impact of supply-chain disruptions and soaring raw material prices, operating profit was ¥2.183 billion, down 37.4% from the previous fiscal year, due to higher fixed costs mainly resulting from soaring personnel expenses in the United States.」

「Looking ahead, it is necessary to remain attentive to soaring raw material prices and global inflation trends, and conditions remain such that the outlook cannot yet be regarded as secure.」

「Although freight costs rose amid supply-chain disruptions and raw material market conditions deteriorated, operating profit was ¥3.416 billion, compared with an operating loss of ¥2.480 billion in the same period of the previous year, and ordinary profit was ¥3.679 billion, compared with an ordinary loss of ¥2.387 billion, due to the effect of higher revenue and continued benefits from fixed-cost reductions implemented from the previous year.」

「The overall supply chain also became unstable due to disruptions in global logistics networks and shortages of automotive semiconductors and raw materials, affecting the Group's business results and performance.」

「The Company reported an operating loss of ¥954 million, compared with operating profit of ¥568 million in the same period of the previous year, due to lower sales and higher material costs associated with foreign-exchange fluctuations.」

「Operating profit declined to ¥281 million, down 23.9% year on year, due to lower sales and a deterioration in the material cost ratio associated with foreign-exchange fluctuations.」

「Revenue and profit declined, as the Mexican plant and other operations were affected by deteriorating local economic conditions, while raw material costs increased due to higher import costs and exchange-rate fluctuations.」

「Profit declined due to higher material costs associated with increased import costs and foreign-exchange fluctuations, as well as higher personnel expenses.」

「For the cumulative first quarter, revenue increased mainly in China and Japan due to new launches and higher customer production volumes, but profit declined in North and South America, China and Asia because of higher material prices and labor and other costs.」

「Revenue fell 5.2% to ¥2,198.9 million and operating profit fell 30.0% to ¥113.0 million, mainly due to lower revenue at the Mexican subsidiary and higher material costs.」

「Operating results for the first quarter of the fiscal year increased in revenue mainly in Asia and Europe due to new launches and higher customer production volumes, but profit declined in Asia, Europe and China because of higher material prices and fixed costs such as personnel expenses.」

「Japan: Sales were ¥26.039 billion, roughly in line with the same period of the previous year, down 0.5% year on year, while operating profit declined to ¥177 million, down 87.1% year on year, mainly due to higher costs including emergency transportation expenses, quality-related expenses and material prices. North and South America: Profit declined to ¥1.944 billion, down 34.4% year on year, as material costs increased at the U.S. and Mexican subsidiaries due to higher material prices and other factors, while fixed costs such as personnel expenses also increased at the U.S. subsidiary.」

「During the six-month period ended [the current second quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」

「Our Group procures raw materials from outside the Group, but fluctuations in raw material prices and other factors may adversely affect the Group's business results and financial position.」