Risk of fluctuations in the prices of materials such as copper, steel and resins
First written in FY2016. 7 of 21 entries say "Worsened", first in FY2022. Latest entry: 2026-11-06.
Sansha Electric Manufacturing moved to the "Worse" side of this theme in 2018, 3 years before the typical company in this theme (2021).
The whole theme swung hardest in 2021: 34 of 64 companies on the "Worse" side.
19 other companies' latest entry also says "Materialised".
- FY2027-H1WorsenedAnnual report
「Although segment profit benefited from higher revenue, the cost of sales increased as a result of higher material costs and increased subcontracted processing costs, causing the gross profit margin to decline. In addition, higher fixed costs, mainly due to increased personnel expenses, resulted in a loss of ¥100 million, compared with a loss of ¥264 million in the same period of the previous year.」
In the semiconductor business, higher revenue resulting from the recovery in demand provided a benefit, but the gross profit margin declined due to increases in material costs, subcontracted processing costs and personnel expenses, resulting in a segment loss of ¥100 million. Earnings continue to be pressured by cost fluctuations. - 2026-07-31WorsenedFinancial results presentation materials
「原材料費の高騰と外注加工費上昇により限界利益率が低下し、前年同期比赤字幅拡大」
半導体事業で原材料費と外注加工費の上昇が限界利益率を押し下げ、前年同期より赤字幅が拡大した。素材・材料コスト変動の影響が当四半期にも現れている。 - FY2026WorsenedAnnual report
「Factor causing deterioration in the gross margin ratio: ▲¥229 million」
In the power equipment business, higher sales and fixed-cost reductions pushed up profit, while deterioration in the gross margin ratio reduced profit by ¥229 million, bringing pressure from materials and costs into the reported results. - FY2026-H1WorsenedAnnual report
「Segment profit was ¥333 million, down 36.9% year on year, due in part to soaring material costs compared with the same period of the previous year.」
Soaring material costs reduced profit in the power equipment business, and segment profit decreased 36.9% year on year. The impact of fluctuations in material prices and material costs has emerged in the results. - FY2024MitigatedAnnual report
「In addition to the impact of higher sales, the increase in the sales mix of relatively high-value-added products improved the gross margin ratio, offsetting factors that reduced profit, including higher fixed costs and foreign exchange effects. Operating profit improved by ¥2,016 million from the previous fiscal year to ¥3,135 million.」
While pressure on earnings from materials, costs and foreign exchange remained, the increase in the proportion of high-value-added products improved the gross margin ratio and led to a recovery in profit in the power equipment business. - FY2024-Q3RestatedAnnual report
「During the cumulative third quarter of the consolidated fiscal year, uncertainty in the global economy continued due to persistently high resource prices, inflation and yen depreciation associated with monetary policy in Europe and the United States, and deterioration in China's real estate market. In Japan, economic and social activity normalized following the reclassification of COVID-19 to Category 5, but energy prices and overall prices continued to rise.」
The business environment of persistently high resource prices and continued increases in energy prices and overall prices has been reconfirmed. - FY2024-Q2MitigatedAnnual report
「In terms of profit, in addition to the benefit from higher sales, the gross margin ratio improved as a result of changes in the sales mix, the promotion of cost-reduction models and reviews of selling prices. Operating profit also increased because production was brought forward in preparation for large projects in the second half.」
The company explained that the gross margin ratio improved through an improved sales mix, the promotion of cost-reduction models and reviews of selling prices, indicating measures to address pressure on profit from higher material and other costs. - FY2024-Q1RestatedAnnual report
「On the production side, component shortages were moving toward resolution, but lead times for procuring raw materials had not yet shortened, while persistently high energy prices and transportation costs continued to pressure earnings.」
While component shortages were moving toward resolution, prolonged raw material procurement times and persistently high energy prices and transportation costs continued to pressure earnings. The risk of fluctuations in material and procurement costs remains. - FY2023MaterialisedAnnual report
「Factor causing deterioration in the gross margin ratio: ▲¥147 million」
Higher raw material prices, electricity charges and transportation costs actually lowered the gross margin ratio and profit. In the semiconductor business, the impact of the deterioration in the gross margin ratio on operating profit was analyzed as ¥147 million. - FY2023-Q2RestatedAnnual report
「Although orders remained solid, raw material procurement continued to take time, while soaring material and energy prices and higher transportation costs put continued pressure on earnings.」
Although orders remained solid, prolonged raw material procurement times and higher material and energy prices and transportation costs continued to pressure earnings. - FY2023-Q1WorsenedAnnual report
「Although orders for our Group's business remained solid from the previous consolidated fiscal year, raw material procurement continued to take time, while soaring material and energy prices and higher transportation costs also began to affect profit.」
While demand and orders remained solid, soaring energy prices and transportation costs were added to higher material prices as sources of pressure on profit, broadening the scope of cost fluctuation risk. - FY2022WorsenedAnnual report
「The business environment surrounding our Group improved as capital investment in manufacturing recovered, supporting solid demand related to machine tools, while demand for automobiles, semiconductors and electronic components expanded significantly. At the same time, shortages of raw materials and soaring material prices began to affect corporate earnings.」
While demand expanded, shortages of raw materials and soaring material prices developed into factors affecting corporate earnings, indicating a deterioration in the risk from material price fluctuations. - FY2022-Q3MaterialisedAnnual report
「Although sales increased, segment profit was ¥39 million, down 67.9% year on year, as production volume declined and production efficiency fell due to delays in procuring raw materials, while higher material prices also exerted pressure.」
Higher material prices emerged as an actual source of pressure on segment profit in the power equipment business, and profit decreased 67.9% year on year. - FY2022-Q2MaterialisedAnnual report
「Although higher production costs to meet strong customer demand were a source of pressure, the effect of higher sales was significant, resulting in segment profit of ¥209.04 million, up ¥271 million year on year.」
Higher production costs associated with meeting strong demand became an actual source of pressure on segment profit in the semiconductor business. - FY2021RestatedAnnual report
「If material market conditions fluctuate sharply, the time required from inquiries through order receipt and delivery may delay the pass-through to product prices, which may affect operating results.」
The risk of fluctuations in the prices of materials such as copper, steel and resins, and delayed price pass-through due to the time required from order receipt to delivery, has been reconfirmed. - FY2019-Q3MaterialisedAnnual report
「Segment profit was ¥480 million, down 0.2% year on year, due in part to the impact of higher raw material prices.」
Higher raw material prices pressured segment profit in the semiconductor business, and profit decreased 0.2% year on year. The impact of the risk of material price fluctuations also emerged during the quarter. - FY2019-Q2MaterialisedAnnual report
「Segment profit was ¥350 million, up 45.4% year on year. Rising raw material prices became a source of pressure in the second quarter, but this was offset by higher sales and the impact of foreign exchange, among other factors.」
Higher raw material prices were recognized as an actual source of pressure on segment profit in the semiconductor business, bringing the risk of material price fluctuations to the fore. Meanwhile, profit increased 45.4% year on year. - FY2017RestatedAnnual report
「A sharp fluctuation in material market conditions may affect operating results if the increase cannot be passed through to product prices promptly.」
The risks of fluctuations in the prices of materials such as copper, steel and resins, and delays in passing them through to product prices, are reiterated. - FY2016First statedAnnual report
「Because we use many components made from materials such as copper, steel and resins, a sharp fluctuation in material market conditions may affect operating results if the increase cannot be passed through to product prices promptly.」
The delay in passing through material price increases in the power equipment business, where the period from order receipt to delivery is long, is identified as a risk.