Risk of Rising Purchase Prices for Aluminum Foil, Heavy Fuel Oil and Other Inputs
First written in FY2016. 6 of 13 entries say "Worsened", first in FY2021. Latest entry: FY2026.
The whole theme swung hardest in 2022: 122 of 167 companies on the "Worse" side.
- FY2026WorsenedAnnual report
「Geopolitical tensions arising from armed conflicts between nations, represented by the conflict in Ukraine and the situation in Iran, have materialized as ongoing procurement risks. In addition, production discontinuations (EOL) due to efforts to improve the profitability of unprofitable products have been increasing, and the Group is working to strengthen its supply chain, making stable procurement an urgent priority.」
In addition to surging raw-material prices and supply shortages, the Group added the materialization of procurement risks due to geopolitical tensions, including the situation in Iran, and an increase in EOL products. - FY2026-H1MaterialisedAnnual report
「Due in part to increased demand for aluminum electrolytic capacitors in the ICT market, net sales amounted to ¥61,873 million, up 7.3% year on year, while segment profit amounted to ¥927 million, down 44.7% year on year, due in part to surging raw-material prices.」
The risk of higher raw-material prices has materialized in the results, with surging raw-material prices identified as a factor behind the 44.7% year-on-year decline in segment profit in the capacitor business. - FY2024WorsenedAnnual report
「The sharp recent depreciation of the yen, together with surging logistics and labor costs, has placed significant upward pressure on the prices of materials procured particularly in Japan. Our Group's performance and financial condition may be affected by the impact of higher costs resulting from increases in the purchase prices of raw materials, including aluminum foil and heavy fuel oil, as well as delays in product shipments due to difficulties procuring raw materials and other items.」
Regarding raw-material price and supply risks, the Group explicitly identified, in addition to previously cited surging prices and procurement difficulties, the sharp depreciation of the yen, surging logistics and labor costs, and upward price pressure on materials procured in Japan. - FY2024-Q1RestatedAnnual report
「Surging raw-material and energy prices due to the prolonged situation in Ukraine」
Surging raw-material and energy prices continue to be identified as cost factors in the business environment. - FY2023WorsenedAnnual report
「New procurement risks have materialized due to U.S. economic-security regulations, including the Uyghur Forced Labor Prevention Act and sanctions against Russia. In addition, production discontinuations (EOL) due to efforts to improve the profitability of unprofitable products have been increasing, and the Group is working to strengthen its supply chain, making stable procurement an urgent priority.」
In addition to the previous risks of surging prices and supply shortages, the Group stated that new procurement risks had materialized due to U.S. economic-security regulations and an increase in production discontinuations (EOL). - FY2023-Q3RestatedAnnual report
「Surging raw-material and energy prices due to the prolonged situation in Ukraine」
In addition to higher raw-material prices against the backdrop of the prolonged situation in Ukraine, surging energy prices continue to be identified as a cost factor. - FY2023-Q2RestatedAnnual report
「During the cumulative second quarter under review, the global economy remained generally firm, although some weakness was observed amid progress in reconciling COVID-19 countermeasures with economic activity around the world, due in part to surging resource prices resulting from the prolonged situation in Ukraine and other factors.」
Surging resource prices against the backdrop of the situation in Ukraine and other factors continue to be identified as a cost factor in the economic environment. - FY2023-Q1WorsenedAnnual report
「During the cumulative first quarter under review, the global economy saw progress in reconciling COVID-19 countermeasures with economic activity in various parts of the world. However, logistics remained severely disrupted and resource prices rose further due to the prolonged situation in Ukraine and lockdowns in major Chinese cities.」
Regarding the risk of higher raw-material and resource prices, the Group stated that resource prices rose further against the backdrop of the situation in Ukraine and lockdowns in China, while logistics disruptions continued. Risks related to price increases, supply and logistics have persisted and expanded. - FY2022MaterialisedAnnual report
「In 2022, soaring procurement prices for raw materials and other items and supply issues became apparent as a result of Russia's invasion of Ukraine and lockdowns in China. The company is working to strengthen its supply chain, identifying stable procurement as an urgent priority.」
The previously identified risks of potential price increases and procurement difficulties are described as having materialized in the form of surging raw-material prices and supply problems. - FY2022-Q3WorsenedAnnual report
「Meanwhile, uncertain conditions continue, including the spread of COVID-19 variants, the impact of tight semiconductor supply and demand, surging raw-material prices, and rising logistics costs.」
In addition to the previous risk of higher raw-material purchase prices, surging raw-material prices were explicitly identified, and rising logistics costs were listed as a new cost factor. - FY2021WorsenedAnnual report
「Our Group's performance and financial condition may be affected by the impact of higher costs resulting from increases in the purchase prices of raw materials, including aluminum foil and heavy fuel oil, as well as delays in product shipments due to difficulties procuring raw materials and other items.」
In addition to the previous risk of higher purchase prices, the Group explicitly identified difficulties procuring raw materials, delays in product shipments, and widespread shortages caused by disasters and other factors. - FY2018RestatedAnnual report
「Our Group may be affected by higher costs resulting from increases in the purchase prices of raw materials, including aluminum foil and heavy fuel oil.」
The possibility of higher costs resulting from increases in the purchase prices of aluminum foil, heavy fuel oil and other materials has been reiterated. - FY2016First statedAnnual report
「Our Group may be affected by higher costs resulting from increases in the purchase prices of raw materials, including aluminum foil and heavy fuel oil.」
The Group cites promoting local procurement and reducing costs through higher productivity as measures to mitigate the risk, but the possibility remains that it could be affected by a sudden surge in prices.