Rising Manufacturing Costs Due to Soaring Raw Material Prices
First written in FY2017. 7 of 21 entries say "Mitigated", first in FY2023-Q2. Latest entry: 2026-10-30.
The whole theme swung hardest in 2022: 124 of 167 companies on the "Worse" side.
- FY2026MitigatedAnnual report
「Regarding profit and loss, operating profit was ¥3,748 million, up 11.2% year on year, and ordinary profit was ¥3,988 million, up 11.1%, due to higher sales and price revisions implemented for certain products in response to rising material costs.」
The impact of higher raw material prices continues to be disclosed, but price revisions in response to rising material costs and higher sales resulted in year-on-year increases in operating profit and ordinary profit. - FY2026-H1MaterialisedAnnual report
「Regarding profit and loss, operating profit was ¥1,280 million, down 2.7% year on year, and ordinary profit was ¥1,361 million, down 0.3%, due to surging raw material prices and higher labor costs. Interim net profit attributable to owners of the parent was ¥844 million, down 11.5%.」
In addition to surging raw material prices, higher labor costs were identified as factors affecting profit. Operating profit declined 2.7% year on year, and interim net profit attributable to owners of the parent declined 11.5%. - FY2025-H1MitigatedAnnual report
「Regarding profit and loss, operating profit was ¥1,315 million, up 56.6% year on year, and ordinary profit was ¥1,365 million, up 27.8%, due to higher sales and price revisions implemented for certain products in response to rising material costs, among other factors.」
Price revisions were implemented for certain products in response to rising material costs, and operating profit and ordinary profit increased year on year. - FY2024-Q3RestatedAnnual report
「Regarding profit and loss, operating profit was ¥1,872 million, up 92.8% year on year, and ordinary profit was ¥2,095 million, up 63.9%, due to higher sales and price revisions implemented for certain products in response to rising material costs.」
Material costs continued to rise, but price revisions for certain products and higher sales resulted in year-on-year increases in operating profit and ordinary profit. - FY2024-Q2MitigatedAnnual report
「Regarding profit and loss, operating profit was ¥840 million, up 106.3% year on year, and ordinary profit was ¥1,068 million, up 47.2%, due to higher sales and price revisions implemented for certain products in response to rising material costs, among other factors.」
Material costs continued to rise, but price revisions were implemented for certain products, and together with higher sales, this resulted in year-on-year increases in operating profit and ordinary profit. - FY2024-Q1MaterialisedAnnual report
「Sales of distribution automation remote terminal units for electric utilities declined because delays in the arrival of components for certain products affected production.」
Delays in the arrival of components actually affected production and resulted in lower sales of distribution automation remote terminal units for electric utilities. - FY2023RestatedAnnual report
「However, sharp price increases for raw materials, fuel, logistics and other costs could pressure profit and affect our business performance.」
The risk of profit pressure from sharp increases in fuel and logistics costs, in addition to raw material prices, continues to be disclosed. Price revisions in response to rising material costs were also implemented for certain products. - FY2023-Q3RestatedAnnual report
「Regarding profit and loss, operating profit was ¥971 million, up 11.0% year on year, and ordinary profit was ¥1,278 million, up 21.1%, due to higher sales and price revisions implemented for certain products in response to rising material costs.」
Material costs continued to rise, but price revisions for certain products and higher sales resulted in year-on-year increases in operating profit and ordinary profit. - FY2023-Q2MitigatedAnnual report
「Regarding profit and loss, operating profit was ¥407 million, up 12.4% year on year, and ordinary profit was ¥725 million, up 50.9%, due to higher sales and price revisions implemented for certain products in response to rising material costs.」
Material costs continued to rise, but price revisions were implemented for certain products, and operating profit and ordinary profit increased year on year. - FY2023-Q1MaterialisedAnnual report
「Regarding profit and loss, operating profit was ¥116 million, down 40.2% year on year, while ordinary profit was ¥304 million, up 20.9%, due to the impact of surging raw material prices and other factors.」
Surging raw material prices were identified as an actual factor reducing operating profit, which declined 40.2% year on year. - FY2022WorsenedAnnual report
「Our Group is working to reduce costs by, among other measures, producing electromagnetic switches and high-voltage switches at overseas subsidiaries, thoroughly standardizing operations in the development division, and promoting TPW (Togami group Production Way) in the manufacturing division. However, rising prices for raw materials, fuel, logistics and other costs could pressure profit and affect our business performance.」
The disclosure now explicitly includes higher fuel and logistics costs in addition to raw material prices, broadening the range of factors pressuring profit. In actual results, operating profit declined 4.6% year on year due to surging raw material prices. - FY2022-Q3RestatedAnnual report
「Regarding profit and loss, operating profit was ¥874 million, down 18.4% year on year, and ordinary profit was ¥1,056 million, down 20.3%, due to surging raw material prices and difficulties procuring electronic components such as semiconductors, which affected the production and sales of certain products.」
Surging raw material prices and continued difficulties procuring electronic components such as semiconductors affected the production and sales of certain products and contributed to declines in operating profit and ordinary profit. - FY2022-Q2MaterialisedAnnual report
「In terms of profit and loss, soaring raw-material prices and difficulties procuring electronic components, including semiconductors, affected the production and sales of some products. Operating profit was ¥362 million, down 41.2% year on year, and ordinary profit was ¥481 million, down 33.2%.」
Surging raw material prices, previously disclosed as a risk, actually affected the production and sales of certain products, together with difficulties procuring electronic components such as semiconductors, and resulted in lower profit. - FY2022-Q1WorsenedAnnual report
「During the first quarter of the current consolidated cumulative period, the Japanese economy remained in extremely severe conditions due to stagnant capital investment and other activity resulting from the impact of COVID-19, as well as the global semiconductor shortage and surging raw material prices.」
Surging raw material prices were again explicitly identified as a factor contributing to the deterioration of the economic environment, indicating the severity of the conditions surrounding the risk of higher manufacturing costs. - FY2019MaterialisedAnnual report
「However, the Company was unable to avoid the effects of lower capacity utilization resulting from the decline in net sales, soaring raw-material prices and changes in the product mix. Operating profit was ¥1,725 million, down 11.7% year on year, and ordinary profit was ¥1,887 million, down 7.9%.」
Rising raw material prices were identified as an actual factor affecting profit, and operating profit declined 11.7% year on year. - FY2018RestatedAnnual report
「Our Group is working to reduce costs by, among other measures, producing electromagnetic switches and high-voltage switches at overseas subsidiaries, thoroughly standardizing operations in the development division, and promoting TPW (Togami group Production Way) in the manufacturing division. However, depending on trends in raw material prices, manufacturing costs could rise and affect our business performance.」
The risk of higher manufacturing costs due to rising raw material prices and cost-reduction measures through overseas production, standardization and TPW continue to be disclosed. - FY2017First statedAnnual report
「Our Group is working to reduce costs by, among other measures, producing electromagnetic switches and high-voltage switches at overseas subsidiaries, thoroughly standardizing operations in the development division, and promoting TPS (Togami Production System) in the manufacturing division. However, depending on trends in raw material prices, manufacturing costs could rise and affect our business performance.」
While promoting cost reductions through overseas production, standardization and TPS, the Group identifies rising manufacturing costs resulting from trends in raw material prices as a risk.