Rising prices of raw materials and components and supply constraints
First written in FY2016. 7 of 13 entries say "Materialised", first in FY2017-Q1. Latest entry: FY2023.
Nidec moved to the "Worse" side of this theme in 2021, 1 year before the typical company in this theme (2022).
The whole theme swung hardest in 2022: 99 of 155 companies on the "Worse" side.
30 other companies' latest entry also says "Materialised".
- FY2023MaterialisedAnnual report
「Recently, the restructuring of the global energy supply system stemming from the Ukraine crisis, together with escalating US-China trade tensions, triggered a worldwide surge in raw material and assembly component prices, placing pressure on NIDEC’s ability to supply products.」
Rising raw material and component prices and supply constraints were cited as having an actual impact by placing pressure on the company’s ability to supply products. - FY2023-Q3MaterialisedAnnual report
「The recent business environment remains difficult, with shipments of IT equipment and capital-investment-related demand having peaked, global automobile production recovering slowly, and US housing starts continuing to slow. EV-related products were also affected by slower production resulting from lockdowns in China.」
Customers continued to face difficulty procuring semiconductors and other electronic components, with an actual impact on the production and sales environment for automotive applications and other products. - FY2023-Q2MaterialisedAnnual report
「Consolidated revenue from continuing operations for the first six months of the fiscal year increased 24.2% year on year to ¥1.130767 trillion, including the foreign exchange impact, which increased revenue by approximately ¥139.6 billion year on year, amid the effects of Russia’s invasion of Ukraine and continued difficulty for customers in procuring semiconductors and other electronic components. This was a record high.」
Customers continued to face difficulty procuring semiconductors and other electronic components during the quarter, and supply constraints were having an actual impact on the business environment. - FY2023-Q1MaterialisedAnnual report
「Consolidated revenue from continuing operations for the first quarter of the fiscal year increased 20.8% year on year to ¥540.369 billion, including the foreign exchange impact, which increased revenue by approximately ¥67.2 billion year on year, amid the effects of lockdowns related to COVID-19, Russia’s invasion of Ukraine, and continued difficulty for customers in procuring semiconductors and other electronic components. This was a record high.」
Customers continued to face difficulty procuring semiconductors and other electronic components during the quarter, which was cited, together with rising raw material prices and supply chain disruptions, as a factor affecting the business environment. - FY2022WorsenedAnnual report
「In the fourth quarter of fiscal 2021, countries imposed economic sanctions on Russia following its invasion of Ukraine. The resulting deterioration in energy conditions and pressure on raw material production and procurement capacity caused by global supply-chain disruptions could increase the cost of products manufactured by the Company.」
In addition to semiconductor and raw material shortages and higher prices, it adds energy and supply-chain constraints resulting from the situation in Ukraine. - FY2022-Q3MaterialisedAnnual report
「The environment surrounding the Company has been characterized by the materialization of risk factors including semiconductor shortages, higher raw material prices, and the spread of COVID-19 infections in emerging markets.」
Higher raw material prices and semiconductor shortages have continued as events that have materialized recently, rather than merely as anticipated procurement risks. At 日本電産サンキョー, higher raw material costs became a factor behind the decline in operating profit. - FY2022-Q2WorsenedAnnual report
「In the environment surrounding the Company, risk factors including concerns over semiconductor supplies, higher raw material prices, and the spread of COVID-19 infections in emerging markets materialized.」
In addition to higher raw material prices and component supply constraints, the spread of infections in emerging markets materialized at the same time, affecting results through difficulties procuring semiconductors and other electronic components and through production constraints. - FY2022-Q1MaterialisedAnnual report
「Recently, risk factors including semiconductor shortages caused by supply-demand imbalances, shortages and price increases for essential motor materials such as electrical steel sheets, and rising geopolitical risks stemming from Russia's invasion of Ukraine have become more pronounced. Concerns also include uncertainty over energy supplies and higher prices resulting from disruptions to global supply chains.」
Higher raw material prices and shortages of components such as semiconductors were described as events that had materialized recently, rather than merely as anticipated procurement risks. - FY2021WorsenedAnnual report
「In addition, disruptions in the supply-demand balance caused by the COVID-19 pandemic and US-China trade issues may worsen the procurement environment for raw materials such as resins and electronic components, potentially limiting NIDEC's production volume.」
It specifies that procurement risks for raw materials and components could arise through a deterioration in the procurement environment caused by the COVID-19 pandemic and US-China trade issues, potentially limiting production volume. - FY2018RestatedAnnual report
「If various factors limit its ability to procure raw materials and components, NIDEC will secure suppliers that can provide alternative materials and invest in design and development to reduce the quantities of those raw materials and components used.」
It describes a policy of responding to higher raw material and component prices and supply constraints by securing alternative suppliers and investing in design and development. - FY2017RestatedAnnual report
「If soaring prices for these raw materials and assembled components prevent NIDEC from procuring sufficient quantities, its production capacity will be constrained.」
It reaffirms the risks of higher raw material and component prices and supply constraints. - FY2017-Q1MaterialisedAnnual report
「This was mainly due to lower sales and higher raw material costs.」
It states that the risk of higher raw material costs materialized as a factor behind the decline in operating profit at 日本電産タイ日本電産. - FY2016First statedAnnual report
「NIDEC procures aluminum, rare earths, and other raw materials, as well as assembled components such as electronic circuits, magnets, and connectors, from external suppliers. If these raw materials and assembled components cannot be procured in sufficient quantities due to price increases, NIDEC's production capacity will be constrained.」
It cites the prices of raw materials and parts, suppliers' financial condition, and conflict-minerals regulations as procurement risks.