Concern over Higher Costs Due to Rising Crude Oil Prices and Labor Costs
First written in FY2018. 10 of 20 entries say "Worsened", first in FY2019-Q2. Latest entry: 2026-11-12.
Nkk Switches 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 2022: 80 of 122 companies on the "Worse" side.
47 other companies' latest entry also says "Worsened".
- 2026-11-12WorsenedResults
「Meanwhile, continued attention is required regarding the possibility of demand adjustments resulting from a backlash from advance ordering, in addition to elevated raw material prices and logistics costs, and the Group recognizes that this warrants continued monitoring.」
原材料価格・物流費の高騰に加え、先行発注の反動による需要調整の可能性を新たに併記している。 - FY2027-H1RestatedAnnual report
「Meanwhile, continued attention is required regarding the possibility of demand adjustments resulting from a backlash from advance ordering, in addition to elevated raw material prices and logistics costs, and the Group recognizes that this warrants continued monitoring.」
The disclosure continues to note the operating environment of persistently high raw material prices and logistics costs, as well as the need to remain alert to the possibility of demand adjustments. - 2026-08-06RestatedRevisions to earnings forecasts
「今後につきましては、引き続き堅調な需要を見込む一方、第３四半期以降は需要の調整局面を想定するとともに、原材料価格の高騰による利益圧迫も織り込み、通期連結業績予想を上記のとおり修正いたします。」
原材料価格の高騰が今後の利益を圧迫する可能性を、通期業績予想の前提として引き続き明記している。 - FY2026MaterialisedAnnual report
「Although the gross margin was affected by soaring raw material prices, labor costs, transportation costs and other factors, it increased by 2.6 percentage points from the previous consolidated fiscal year to 42.3% due to higher net sales and cost reduction initiatives.」
While higher raw material prices, labor costs, transportation costs and other expenses continued to occur, higher sales and cost reductions improved the gross margin to 42.3%. - FY2025MaterialisedAnnual report
「Although cost reduction initiatives were implemented, the gross margin decreased by 0.9 percentage points from the previous consolidated fiscal year to 39.7% due to the impact of soaring raw material prices, labor costs, transportation costs and other factors.」
Soaring raw material prices, labor costs, transportation costs and other expenses materialized as an actual decline in the gross margin, which fell by 0.9 percentage points to 39.7%. - FY2025-H1WorsenedAnnual report
「Although the employment and income environment improved and inbound demand expanded in Japan, uncertainty over the outlook increased further due to an unstable international situation, continued inflation caused by soaring raw material and energy prices and the weaker yen, and other factors.」
The Company cites improvements in the employment and income environment and inbound demand as positive factors, while stating that uncertainty increased further due to the continuing impact of rising prices caused by soaring raw material and energy prices and the weaker yen. - FY2024RestatedAnnual report
「Although the gross margin was affected by soaring raw material prices and other factors, it increased by 0.2 percentage points from the previous consolidated fiscal year to 40.6% due to cost reduction initiatives, the impact of the weaker yen and other factors.」
Although raw material and energy prices and other costs continued to rise, the gross margin increased by 0.2 percentage points to 40.6% due to cost reductions, the impact of the weaker yen and other factors. - FY2024-Q3WorsenedAnnual report
「Although private consumption and inbound demand in Japan continued to recover as the post-COVID trend accelerated, advance orders arising from semiconductor and raw material shortages since the previous year had leveled off globally, leaving market inventories elevated. In addition, the outlook remained uncertain due to the effects of globally soaring energy prices, rising prices and other factors.」
Amid continued increases in energy prices and rising prices, the Company documents the end of advance orders driven by semiconductor and raw material shortages and the buildup of market inventories, making cost and demand environment concerns more concrete. - FY2024-Q2WorsenedAnnual report
「Although economic activity in Japan was moving toward normalization under the “with-COVID” policy and private consumption and inbound demand continued to recover, advance orders arising from semiconductor and raw material shortages since the previous year had leveled off. The outlook remained uncertain due to the effects of globally soaring energy prices, rising prices and other factors.」
While acknowledging the recovery in economic activity and private consumption, the Company identifies the end of advance orders driven by semiconductor and raw material shortages, soaring energy prices and rising prices as new concerns. - FY2024-Q1WorsenedAnnual report
「Although private consumption and inbound demand in Japan were on a recovery trend against the backdrop of eased restrictions following the reclassification of COVID-19 as a Class 5 infectious disease, advance orders arising from semiconductor and raw material shortages since the previous year had leveled off. The outlook remained uncertain due to rising prices caused by globally soaring raw material prices, monetary tightening and other factors.」
While acknowledging the recovery in private consumption and inbound demand, the Company identifies the end of advance orders driven by raw material shortages, soaring raw material prices, rising prices and monetary tightening as new concerns. - FY2023-Q3WorsenedAnnual report
「Although social and economic activity in Japan showed signs of recovery as restrictions related to COVID-19 were eased, the outlook remained uncertain, with the slowdown in overseas economies posing a downside risk to the economy amid continued global monetary tightening, along with soaring energy prices, rising prices and supply chain disruptions.」
The Company identifies soaring energy prices, rising prices and supply chain disruptions, as well as downside risks to the economy from monetary tightening and a slowdown in overseas economies. - FY2023-Q2WorsenedAnnual report
「Although Japan saw moves toward reopening social and economic activity while implementing measures to prevent COVID-19 infections, the outlook remained uncertain due to the impact on the economy of the rapid depreciation of the yen and soaring raw material prices, among other factors.」
In addition to soaring raw material prices, the Company cites the economic impact of the rapid depreciation of the yen, with cost and economic environment concerns continuing. - FY2023-Q1WorsenedAnnual report
「While the Japanese economy showed signs of recovery from the slowdown caused by COVID-19, the outlook remained uncertain due to increasing inflationary pressure resulting from soaring energy and raw material prices, among other factors.」
Continued increases in crude oil, energy and raw material prices, together with mounting inflationary pressure, have sustained and concretized concerns over higher costs. - FY2022MitigatedAnnual report
「Although the gross margin was affected by soaring raw material prices, it increased by 2.4 percentage points from the previous consolidated fiscal year to 42.4% as a result of expense reductions and other initiatives.」
Amid continued increases in raw material prices, expense reductions and other measures lifted the gross margin by 2.4 percentage points to 42.4%. - FY2021MitigatedAnnual report
「Although raw-material costs continued to rise, the gross profit margin was 40.0%, almost unchanged from the previous consolidated fiscal year, owing to the large-scale consolidation and elimination of products, the first since the Company’s founding, efforts to strengthen a lean operating structure, and cost reductions.」
The Company states that it maintained the gross margin at 40.0% through product consolidation, lean operations and expense reductions amid continued increases in raw material costs. - FY2020MitigatedAnnual report
「Although raw material costs continued to rise, the gross margin increased by 3.7 percentage points to 39.9% due to product price revisions, cost reductions resulting from production transfers and expense reductions from reviewing operations.」
Although raw material costs continued to rise, product price revisions, production transfers and expense reductions from reviewing operations improved the gross margin by 3.7 percentage points, with the results documenting measures taken to address the impact of higher costs. - FY2019WorsenedAnnual report
「The gross margin decreased by 4.0 percentage points to 36.3% due to soaring raw material costs, higher labor costs in China and Japan, persistently high expenses associated with the construction of the Mactan plant, the recognition of inventory valuation losses and disposal losses resulting from a review of inventories as part of efforts to strengthen profitability, and the impact of escalating trade friction, among other factors.」
Raw material costs, labor costs, Mactan plant construction costs, inventory valuation and disposal losses, and trade friction affected the actual decline in the gross margin, making the risk of higher costs apparent. - FY2019-Q3RestatedAnnual report
「However, this period presented numerous cost-related challenges, including soaring raw material costs, higher labor costs in China and Japan, persistently high expenses associated with the construction of the Mactan plant, and the impact of escalating trade friction.」
The Company continues to disclose cost-related challenges involving raw material costs, labor costs, Mactan plant construction costs and trade friction. Soaring raw material costs, higher labor costs and persistently high construction costs actually occurred. - FY2019-Q2WorsenedAnnual report
「However, this period presented numerous cost-related challenges, including soaring raw material costs, higher labor costs in China and Japan, persistently high expenses associated with the construction of the Mactan plant, and the impact of escalating trade friction.」
In addition to the previous concerns over rising crude oil prices and labor costs, the Company identifies soaring raw material costs, persistently high Mactan plant construction costs and the impact of trade friction as specific cost-related challenges during the period. - FY2018First statedAnnual report
「In addition, economic conditions are expected to remain uncertain, including concerns over higher costs resulting from rising crude oil prices and labor costs.」
The Company has explicitly identified higher costs resulting from rising crude oil prices and labor costs as a business environment risk for the first time.