Soaring Raw Material Prices, Supply Shortages and Quality Issues
First written in FY2016. 11 of 29 entries say "Materialised", first in FY2017-Q2. Latest entry: 2026-10-21.
Fdk moved to the "Worse" side of this theme in 2016, 5 years before the typical company in this theme (2021).
The whole theme swung hardest in 2021: 34 of 52 companies on the "Worse" side.
13 other companies' latest entry also says "Mitigated".
- FY2026-H1WorsenedAnnual report
「The Group is advancing initiatives under its medium-term business plan, R2, whose final year is the current consolidated fiscal year, focused on accelerating profitable growth in core businesses and launching and developing new businesses. It worked to strengthen resilience to rising utility costs, logistics costs, prices and labour costs through cost reductions using value engineering and thorough expense reductions, while also acquiring, developing and deepening new businesses.」
In addition to raw material prices, increases in utility costs, logistics costs, prices and labour costs were identified as areas requiring action, indicating that supply and cost pressures continue. Responses through value engineering and expense reductions were also cited. - FY2025-H1WorsenedAnnual report
「Strengthening resilience to higher raw material prices, utility costs and logistics costs through cost reductions using value engineering and thorough expense reductions」
In addition to raw material prices and utility costs, higher logistics costs were explicitly identified as areas requiring action, indicating that supply and cost pressures continue. Higher costs are also affecting the battery business's earnings. - FY2024Some improvement, but levels remain highAnnual report
「Although COVID-19 was reclassified as a Class 5 infectious disease under the Infectious Diseases Control Law in May, and there were signs of a recovery in capital investment as economic activity normalised, signs of a recovery in production, and some improvement in material procurement and raw material prices, raw material prices remain high, in addition to」
Although some improvement was indicated in material procurement and raw material prices, raw material prices remained high and continued to weigh on battery business earnings. - FY2024-Q3Some improvement, but levels remain highAnnual report
「Although some improvement was seen in material procurement and raw material prices, raw material prices remain high, in addition to」
Although some improvement was reported in material procurement and raw material prices, raw material prices remain high and continue to weigh on earnings in the battery business. - FY2024-Q2Some improvement, but levels remain highAnnual report
「Although some improvement was seen in material procurement and raw material prices, they remained at high levels, in addition to,」
Although some improvement was reported in material procurement and raw material prices, raw material prices remain high and continue to weigh on earnings in the battery business. - FY2024-Q1WorsenedAnnual report
「In some areas, in addition to prolonged difficulty procuring materials, raw material and utility costs soared,」
Difficulty procuring materials has continued for an extended period, and soaring utility costs, in addition to raw material prices, were explicitly noted, indicating persistent supply- and cost-related risk factors. In the battery business, soaring raw material and utility costs had a significant impact and became a factor contributing to lower profit. - FY2023WorsenedAnnual report
「The main reason for the decrease in current assets was a decline in notes and accounts receivable, despite an increase in inventories, including raw materials, supplies, and work in process, due to production delays caused by difficulty obtaining materials, soaring raw material prices, and strategic advance procurement associated with difficulty procuring electronic and resin components.」
Production delays caused by difficulty obtaining materials, soaring raw material prices, and difficulty procuring electronic and resin components continued, and the impact emerged in actual results as an increase in inventories associated with advance procurement and other measures. - FY2023-Q3WorsenedAnnual report
「The main reason for the increase in current assets was the ¥980 million increase in inventories, including raw materials, supplies, and work in process, due to production delays caused by difficulty obtaining materials, soaring raw material prices, and strategic advance procurement associated with difficulty procuring electronic and resin components.」
Production delays caused by difficulty obtaining materials, soaring raw material prices, and difficulty procuring electronic and resin components continued, resulting in a ¥980 million increase in inventories through advance procurement and other measures. The supply- and cost-related risks have been quantified to a greater extent than in the previous quarter. - FY2023-Q2WorsenedAnnual report
「The main reason for the increase in current assets was the ¥207 million increase in inventories, including work in process, raw materials, and supplies, due to production delays caused by incomplete material supplies, soaring raw material prices, and strategic advance procurement associated with difficulty procuring electronic and resin components.」
Production delays caused by incomplete material supplies, difficulty procuring electronic and resin components, and soaring raw material prices actually occurred, resulting in a ¥207 million increase in inventories through advance procurement and other measures. The supply- and cost-related risks have been quantified. - FY2023-Q1WorsenedAnnual report
「The main reason for the increase in current assets was the ¥738 million increase in inventories, including raw materials, due to advance procurement and production delays caused by incomplete material supplies associated with difficulty procuring electronic and resin components, as well as soaring raw material prices.」
Difficulty procuring electronic and resin components, production delays caused by incomplete material supplies, and soaring raw material prices actually occurred, resulting in a ¥738 million increase in inventories. The supply- and cost-related risks have been quantified. - FY2022WorsenedAnnual report
「Conditions remained uncertain as difficulty procuring electronic and resin components, soaring raw material prices, and chronic logistics disruptions, including container shortages and port congestion, persisted.」
The company stated that difficulty procuring electronic and resin components, soaring raw material prices, and chronic logistics disruptions caused by container shortages and port congestion had become entrenched, indicating that supply- and cost-related risks continue and are expanding. - FY2022-Q3WorsenedAnnual report
「Conditions remained uncertain as difficulty procuring electronic and resin components, soaring raw material prices, and chronic logistics disruptions, including container shortages and port congestion, persisted.」
The company stated that difficulty procuring electronic and resin components, soaring raw material prices, and chronic logistics disruptions caused by container shortages and port congestion had become entrenched, indicating continued supply- and cost-related risk factors. - FY2022-Q2WorsenedAnnual report
「Difficulty procuring electronic and resin products, soaring prices, and logistics disruptions caused by container shortages and port congestion」
In addition to the previously noted difficulty procuring electronic components and logistics disruptions, difficulty procuring resin products, soaring prices, and port congestion were specifically noted, broadening the supply- and cost-related risk factors. - FY2022-Q1MaterialisedAnnual report
「Difficulty procuring electronic components and logistics disruptions caused by container shortages」
Regarding the risk of supply shortages and procurement difficulties, difficulty procuring electronic components and logistics disruptions caused by container shortages were cited as actual business conditions. - FY2020-Q1MitigatedAnnual report
「The loss in the electronics business narrowed due to improved earnings through a focus on selected businesses and the smaller impact of soaring raw material prices compared with the first quarter of the previous consolidated fiscal year.」
Although the impact of soaring raw material prices continues to be noted, it was smaller year on year in the electronics business and contributed to the narrowing of the loss. - FY2019MaterialisedAnnual report
「Despite the impact of lower sales and soaring raw material prices, operating profit increased by ¥157 million from the previous consolidated fiscal year to ¥823 million due to technical value engineering, cost reductions, company-wide expense reductions, and foreign-exchange effects.」
The company stated that the negative impact of soaring raw material prices on operating profit was absorbed through technical value engineering, cost reductions, and expense reductions, among other measures. - FY2019-Q3MaterialisedAnnual report
「In terms of earnings, despite the impact of soaring raw material prices, operating profit increased by ¥399 million from the first three quarters of the previous consolidated fiscal year to ¥1,037 million, due to higher sales, cost reductions, and foreign-exchange effects.」
Although soaring raw material prices actually emerged as a negative factor affecting operating profit, operating profit exceeded the year-earlier period due to higher sales, cost reductions, and foreign-exchange effects. - FY2019-Q2MaterialisedAnnual report
「In terms of earnings, despite the impact of soaring raw material prices, operating profit increased by ¥85 million from the first two quarters of the previous consolidated fiscal year to ¥220 million, due to higher sales, cost reductions, and foreign-exchange effects.」
Although soaring raw material prices actually emerged as a negative factor affecting operating profit, operating profit exceeded the year-earlier period due to higher sales, cost reductions, and foreign-exchange effects. - FY2019-Q1MaterialisedAnnual report
「In terms of earnings, profit in the battery business declined due to lower sales of nickel-metal hydride and lithium batteries and the impact of soaring raw material prices for alkaline and lithium batteries.」
Soaring raw material prices, together with lower sales of nickel-metal hydride and lithium batteries, actually emerged as factors contributing to lower profit in the battery business. - FY2018MaterialisedAnnual report
「Nickel, zinc, lithium, and rare earths, which are key materials for the Group's battery products, are subject to significant price fluctuations due to supply-demand balances and speculative factors, substantially affecting material costs. Although the battery business was affected by lower sales of alkaline and nickel-metal hydride batteries and soaring raw material prices, it secured profit at the same level as in the previous consolidated fiscal year through higher sales of lithium batteries and energy storage systems and cost reductions.」
The risk of price fluctuations in key materials was reiterated, and soaring raw material prices actually emerged as a factor affecting earnings in the battery business for the fiscal year. - FY2018-Q3MaterialisedAnnual report
「In terms of earnings, the Batteries business posted higher profit despite lower sales of alkaline and nickel-metal hydride batteries and the impact of soaring raw-material prices, due to increased sales of lithium batteries and energy-storage systems, cost reductions and the effect of the yen's depreciation.」
Although soaring raw material prices continued to be an actual negative factor affecting earnings in the battery business, profit increased due to higher sales of other products and cost reductions. - FY2018-Q2MaterialisedAnnual report
「In terms of earnings, the Batteries business posted higher profit despite the impact of soaring raw-material prices, due to increased sales of nickel-metal hydride and lithium batteries and the effect of the yen's depreciation.」
Soaring raw material prices were cited as an actual factor affecting earnings in the battery business. - FY2017MaterialisedAnnual report
「The loss in the electronics business widened due to a substantial decline in sales and rising material prices.」
Rising material prices, together with the decline in electronics business sales, actually emerged as a factor widening the loss. - FY2017-Q3MaterialisedAnnual report
「Despite higher material prices, a substantial decline in sales in the Electronics business and a significant foreign exchange impact from the yen's appreciation, the Company returned to profitability in the third quarter of the consolidated fiscal period.」
Rising material prices, together with the decline in electronics business sales and the foreign-exchange impact of yen appreciation, continue to be actual factors affecting earnings. - FY2017-Q2MaterialisedAnnual report
「Operating loss was ¥376 million due to yen appreciation, rising material prices, and a substantial decline in sales in the electronics business.」
Rising material prices, along with yen appreciation and the decline in electronics business sales, actually emerged as factors contributing to the operating loss. - FY2016First statedAnnual report
「The Group's business performance and financial condition may be adversely affected if, for example, soaring material prices, supply shortages, and quality-control problems occur simultaneously.」
Although the Group seeks to ensure stable procurement through multiple suppliers, it indicates the risk of simultaneous deterioration in prices, supply, and quality.