Foreign Exchange Risk Associated with Overseas Sales and Domestic Manufacturing Facilities
First written in FY2016. 10 of 28 entries say "Worsened", first in FY2018-Q2. Latest entry: FY2026.
Kawasaki Heavy Industries moved to the "Worse" side of this theme in 2016, 2 years before the typical company in this theme (2018).
The whole theme swung hardest in 2025: 13 of 16 companies on the "Worse" side.
0 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The Group's earnings outlook incorporates a certain degree of foreign exchange risk. In particular, the situation in the Middle East could not only increase short-term volatility in foreign exchange markets but also have a long-term impact on foreign exchange markets through higher crude oil prices.」
The Company newly identified the possibility that the situation in the Middle East could lead both to short-term foreign exchange fluctuations and to long-term effects through crude oil prices. - FY2026-H1WorsenedAnnual report
「A moderate economic recovery led by domestic demand is continuing in Japan, supported by favorable employment and income conditions, recovering personal consumption, and expanding capital investment. However, continued attention is required regarding the economic effects of future policy developments, downside risks to external demand resulting from US tariff policies, and fluctuations in financial and capital markets.」
In addition to monitoring fluctuations in financial and capital markets, including foreign exchange markets, the Company explicitly identified downside risks to external demand resulting from US tariff policies as a concern regarding the domestic economy and overseas sales. - FY2025-H1WorsenedAnnual report
「In Japan, a moderate economic recovery led by domestic demand is expected to continue, supported by favorable employment and income conditions, expanding capital investment, increasing inbound demand, and a recovery in personal consumption accompanying improvements in real wages. However, attention is required regarding the economic effects of downside risks to overseas economies, additional interest rate hikes by the Bank of Japan, and the resulting foreign exchange fluctuations.」
The Company explicitly identified additional interest rate hikes by the Bank of Japan and the resulting foreign exchange fluctuations as new factors requiring attention in relation to the domestic economy and the foreign exchange environment. - FY2024-Q2WorsenedAnnual report
「In Japan, the recovery is continuing, with real GDP exceeding pre-pandemic levels due to favorable employment conditions, increased capital investment and inbound demand, among other factors. However, close attention is required regarding price increases resulting from soaring energy prices and the prolonged depreciation of the yen.」
While describing the recovery of the domestic economy, the Company explicitly identified soaring energy prices and price increases resulting from the prolonged depreciation of the yen as concerns regarding the foreign exchange and cost environment. - FY2024-Q1RestatedAnnual report
「Meanwhile, close attention is required regarding the outlook for the domestic economy and the global economy, including increasing downside risks to economic activity resulting from the sluggish real estate market in China and the effects of uncertain foreign exchange markets.」
Uncertainty in foreign exchange markets continues to be described as a factor affecting the domestic economy and the global economy. - FY2023WorsenedAnnual report
「The depreciation of the yen, driven by factors including the widening interest rate differential between Japan and the United States and Japan's trade deficit, is currently benefiting sales while increasing costs through higher procurement and energy prices. Foreign exchange fluctuations have widened due to the effects of monetary policy in Japan and the United States, concerns over the financial system, and emerging geopolitical risks, increasing uncertainty regarding foreign exchange risk.」
The Company described both the benefits to sales from the depreciation of the yen and the cost burden from higher procurement and energy prices, and stated that uncertainty regarding foreign exchange risk had increased due to monetary policy, concerns over the financial system, and other factors. - FY2023-Q3MitigatedAnnual report
「In Japan, the historic depreciation of the yen is beginning to ease, and developments in the economic outlook require continued monitoring.」
The Company indicated that the historic depreciation of the yen was beginning to ease, describing a shift in the foreign exchange environment from continued yen depreciation toward partial improvement. At the same time, it continued to state that developments require monitoring. - FY2023-Q2WorsenedAnnual report
「In Japan, the economy continues to recover, led by domestic demand such as service consumption and capital investment as the seventh wave of COVID-19 infections subsides. However, prices are rising due to the historic depreciation of the yen and higher raw material prices, and developments require continued monitoring.」
The Company explicitly identified price increases caused by the historic depreciation of the yen and higher raw material prices as factors worsening the foreign exchange and cost environment. - FY2023-Q1RestatedAnnual report
「Business profit declined by ¥2.0 billion year on year to ¥12.8 billion, despite higher sales and the yen remaining weaker year on year, due to higher raw-material and logistics costs and increased fixed costs.」
The depreciation of the yen contributed to higher sales, while increased costs, including soaring raw material and logistics costs, put pressure on earnings. The effects of foreign exchange fluctuations were evident on both the sales and cost sides. - FY2022MitigatedAnnual report
「The rapid depreciation of the yen resulting from the widening interest rate differential between Japan and the United States is currently benefiting sales, while costs are being affected by higher procurement and energy prices.」
The Company disclosed both sides of the impact of the rapid depreciation of the yen, namely benefits on sales and higher procurement and energy prices on costs, and continued measures including foreign exchange forwards, passing costs on to prices, and overseas procurement. - FY2022-Q3MitigatedAnnual report
「Operating income increased by ¥27.8 billion year on year to ¥29.6 billion, due to higher sales and the yen remaining weaker year on year.」
In the motorcycle and engine business, the foreign exchange environment, in which the yen was weaker than in the same period of the previous year, was reflected in results as a factor behind a significant improvement in operating income. - FY2022-Q1MitigatedAnnual report
「Operating income improved by ¥20.7 billion year on year to ¥14.8 billion, due to higher sales, the yen remaining weaker year on year, and reductions in promotional expenses.」
In the motorcycle and engine business, the foreign exchange environment, in which the yen was weaker than in the same period of the previous year, was reflected in results as a factor improving operating income and loss. - FY2021-Q3MaterialisedAnnual report
「Consolidated net sales decreased by ¥4.6 billion from the same period of the previous year to ¥225.5 billion, due to a significant decline in motorcycle sales in emerging markets and the yen exchange rate remaining stronger than in the same period of the previous year, despite an increase in four-wheel vehicle sales in North America.」
The appreciation of the yen, together with lower motorcycle sales in emerging markets, was reflected in results as a ¥4.6 billion factor behind the decline in sales in the motorcycle and engine business. - FY2021-Q2WorsenedAnnual report
「In addition to lower sales, operating income deteriorated by ¥1.8 billion year on year, resulting in an operating loss of ¥5.1 billion, due mainly to the yen remaining stronger year on year against the US dollar and emerging-market currencies.」
The appreciation of the yen, together with lower sales of motorcycles and other products in emerging markets, was reflected in results as an expansion of the operating loss in the motorcycle and engine business. - FY2021-Q1MaterialisedAnnual report
「In addition to lower sales, operating income deteriorated by ¥3.0 billion year on year, resulting in an operating loss of ¥5.9 billion, due mainly to the yen remaining stronger year on year against the US dollar, euro and emerging-market currencies.」
The appreciation of the yen was reflected in results as an expansion of the operating loss in the motorcycle and engine business. - FY2020-Q3MaterialisedAnnual report
「Despite higher sales, operating income deteriorated by ¥4.4 billion year on year, resulting in an operating loss of ¥4.5 billion, due mainly to the yen remaining stronger year on year against the euro and US dollar and higher manufacturing costs caused by the stronger Thai baht.」
The increase in manufacturing costs resulting from the appreciation of the yen and the Thai baht was reflected in results as a deterioration in the operating loss of the motorcycle and engine business. - FY2020-Q2WorsenedAnnual report
「The domestic economy is recovering moderately, affected by a gradual increase in capital investment and improvements in corporate earnings, but the deterioration in corporate earnings resulting from US-China trade friction is becoming apparent. Moderate overall growth is expected going forward, but attention is required regarding further deterioration in corporate earnings resulting from the economic policies of the United States and other countries and developments in foreign exchange markets.」
The Company described the emerging deterioration in corporate earnings resulting from US-China trade friction, as well as further deterioration in corporate earnings resulting from the economic policies of various countries and developments in foreign exchange markets, as areas requiring attention. - FY2020-Q1WorsenedAnnual report
「The domestic economy is recovering moderately, affected by a gradual increase in capital investment and improvements in corporate earnings. Moderate overall growth is expected going forward, but attention is required regarding the deterioration of corporate earnings resulting from the economic policies of the United States and other countries and developments in foreign exchange markets.」
In addition to foreign exchange markets, the Company explicitly identified deterioration in corporate earnings resulting from the economic policies of various countries as an area requiring attention. - FY2019-Q3RestatedAnnual report
「The domestic economy is recovering moderately, affected by a gradual increase in capital investment and improvements in corporate earnings. Moderate overall growth is expected going forward, but close attention to foreign exchange markets remains necessary, as the yen may appreciate due to the economic policies of the United States and other countries.」
The Company continued to describe the possibility of yen appreciation resulting from the economic policies of various countries and the need to monitor foreign exchange markets. - FY2019-Q2RestatedAnnual report
「Moderate overall growth is expected going forward, but close attention to foreign exchange markets remains necessary, as the yen may appreciate due to the economic policies of the United States and other countries.」
The Company continued to describe the possibility of yen appreciation resulting from the economic policies of various countries and the need to monitor foreign exchange markets. - FY2019-Q1SoftenedAnnual report
「The domestic economy is recovering moderately, affected by a gradual increase in capital investment and improvements in corporate earnings. Moderate overall growth is expected going forward, but close attention to foreign exchange markets remains necessary, as the yen may appreciate due to the economic policies of the United States and other countries.」
The scope of the discussion of foreign exchange risk was narrowed from the previous wording concerning sharp and significant fluctuations to the possibility of yen appreciation resulting from the economic policies of various countries. - FY2018-Q3RestatedAnnual report
「The domestic economy is recovering moderately, affected by a recovery in inbound demand and improvements in corporate earnings. Moderate overall growth is expected going forward, but close attention to foreign exchange markets remains necessary, as exchange rates may fluctuate sharply and significantly due to the economic policies of the United States and other countries and growing geopolitical risks in the Korean Peninsula and elsewhere.」
The Company continued to describe the possibility of sharp and significant foreign exchange fluctuations against the backdrop of the economic policies of various countries and geopolitical risks in the Korean Peninsula and elsewhere. - FY2018-Q2WorsenedAnnual report
「The domestic economy is recovering moderately, affected by a gradual recovery in personal consumption and a rebound in capital investment. Moderate overall growth is expected going forward due to steady improvements in income and employment conditions. However, close attention to foreign exchange markets remains necessary, as exchange rates may fluctuate sharply and significantly due to the economic policies of the United States and other countries and growing geopolitical risks in the Korean Peninsula and elsewhere.」
The Company explicitly noted the possibility of sharp and significant foreign exchange fluctuations against the backdrop of the economic policies of various countries and geopolitical risks in the Korean Peninsula and elsewhere. - FY2018-Q1MitigatedAnnual report
「In terms of earnings, operating income declined overall due to lower income in the aerospace, motorcycle and engine, and marine and offshore businesses, among others, while ordinary income was at the same level as in the same period of the previous year due to the effect of foreign exchange gains and other factors.」
The Company recorded foreign exchange gains in the current quarter, compared with foreign exchange losses in the same period of the previous year, reducing the adverse effect of foreign exchange factors on ordinary income. - FY2017-Q3MaterialisedAnnual report
「Consolidated orders received decreased by ¥36.1 billion from the same period of the previous year to ¥148.8 billion, due mainly to the appreciation of the yen and a decrease in workshare-manufactured products for commercial aircraft. Consolidated net sales decreased by ¥12.4 billion to ¥238.1 billion, due mainly to the appreciation of the yen, despite an increase in sales to the Ministry of Defense.」
The appreciation of the yen continued to be reflected in results as a factor behind the decline in orders received and net sales in the aerospace business. - FY2017-Q2MaterialisedAnnual report
「In terms of earnings, operating income declined due to deterioration in the marine and offshore business and lower income in the aerospace and gas turbine and machinery businesses, among others, while ordinary income and quarterly net income attributable to owners of the parent were losses.」
Due in part to lower earnings resulting from the appreciation of the yen, ordinary income was a loss of ¥1.7 billion and quarterly net income attributable to owners of the parent was a loss of ¥200 million. Foreign exchange losses also increased from ¥4.5 billion in the same period of the previous year to ¥10.7 billion. - FY2017-Q1MaterialisedAnnual report
「The rapid appreciation of the yen since the beginning of the year has raised concerns over downward pressure on corporate earnings, particularly at export-oriented companies, and the resulting deterioration in business sentiment.」
The Company stated that, in addition to the rapid appreciation of the yen, foreign exchange losses increased from ¥276 million in the same period of the previous year to ¥11,382 million, resulting in lower ordinary income and lower quarterly net income attributable to owners of the parent. - FY2016First statedAnnual report
「During the consolidated fiscal year, overseas sales accounted for 58% of the Group's consolidated net sales, and there were many transactions denominated in foreign currencies, including US dollars and euros.」
The Company also described measures to mitigate risk, including increasing the proportion of costs denominated in foreign currencies and using foreign exchange forwards.