Higher Costs and Lower Margins Due to Soaring Raw Material and Transportation Costs
First written in FY2022-Q1. 5 of 7 entries say "Materialised", first in FY2022-Q1. Latest entry: FY2026.
Teac 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 2019: 10 of 16 companies on the "Worse" side.
4 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Regarding U.S. trade policy, the company avoided a significant impact by selling inventory that its U.S. sales subsidiary had purchased in advance and passing on higher prices for newly received products.」
As a response to U.S. trade policy, the company proceeded with sales of inventory purchased in advance and passed on higher prices for newly received products, and reported that there was no significant impact. - 2026-05-13MaterialisedEarnings
「Supply was constrained by changes to production plans in response to U.S. trade policy and the implementation of shipment restrictions, preventing us from fully meeting demand.」
Changes to production plans and shipment restrictions in response to U.S. trade policy emerged as supply constraints affecting results. - FY2026-H1MitigatedAnnual report
「Regarding U.S. trade policy, the company avoided a significant impact by selling inventory that its U.S. sales subsidiary had purchased in advance and passing on higher prices for newly received products.」
It was reported that the company addressed the impact of U.S. trade policy by selling inventory purchased in advance and passing on higher prices for newly received products, thereby avoiding a significant impact. - FY2024-Q2MaterialisedAnnual report
「During the first half of the current consolidated cumulative period, revenue and operating profit declined year on year. The factors included the contraction of the industrial optical drive business classified under Other, declining demand in the semiconductor equipment market, which had performed well in the previous fiscal year, higher costs due to yen depreciation, and investment in human capital and marketing activities.」
The impact of the yen's depreciation in raising costs was identified as an actual performance factor, while investment in human capital and marketing activities was also cited as a factor behind the decline in operating profit. - FY2023MaterialisedAnnual report
「Premium audio equipment (TEAC brand) reported lower revenue overall after inflationary pressures and higher resource prices stemming from the Ukraine crisis affected consumer sentiment through concerns about an economic downturn in both the Japanese and overseas markets, resulting in lower sales of mass-market products.」
Inflationary pressures, higher resource prices and the Ukraine crisis actually emerged in the form of weaker consumer sentiment and lower sales of mass-market products. - FY2023-Q2MaterialisedAnnual report
「The increase in manufacturing costs caused by the sharp depreciation of the yen and difficulty procuring components was addressed by reviewing shipping prices, and the division as a whole consequently reported higher revenue year on year.」
It was reported that higher manufacturing costs caused by the sharp depreciation of the yen and difficulty procuring components actually occurred and were addressed by reviewing shipping prices. - FY2022-Q1MaterialisedAnnual report
「Although the music production and professional audio equipment business as a whole reported higher revenue, segment operating profit was roughly unchanged from the previous year because rising raw material and transportation costs increased the cost base and reduced margins.」
Higher raw material and transportation costs actually affected segment performance through increased costs and lower margins.