Risk of rising raw material and equipment prices
First written in FY2016. 15 of 33 entries say "Restated". Latest entry: 2026-08-06.
Namura Shipbuilding moved to the "Worse" side of this theme in 2018, 1 year before the typical company in this theme (2019).
The whole theme swung hardest in 2021: 13 of 28 companies on the "Worse" side.
8 other companies' latest entry also says "Mitigated".
- 2026-08-06MitigatedEarnings
「Company-wide cost-reduction efforts, including a review of the supply chain, produced results that exceeded the impact of soaring materials prices and labor costs.」
Cost reductions absorbed the impact of soaring materials prices and labor costs, resulting in a 71.8% year-on-year increase in operating profit in the newbuilding business. - FY2026MitigatedAnnual report
「Despite the significant impact of higher material, equipment and labor costs, revenue and profit increased year on year as the company continued to make handy-size bulk carriers, which had contributed significantly to earnings in the previous period, its main product, while smoothly transitioning to a product-mix construction structure that includes larger vessels such as large bulk carriers, for which substantial replacement demand is expected, together with the effects of group-wide cost reduction efforts in design, manufacturing and procurement and the continued weaker-yen trend.」
Although higher equipment and materials prices and labor costs have actually occurred, their impact was absorbed through measures including the construction of vessels with a low steel-cost ratio and coordination among procurement, design and manufacturing. - FY2026-H1MaterialisedAnnual report
「Although revenue and profit declined year on year due to higher material costs resulting from inflation and other factors, as well as higher labor costs, progress is in line with the initial plan.」
Higher material and labor costs have actually emerged as factors behind declines in revenue and profit in the newbuilding business. Cost-reduction initiatives are in place, but cost pressures continue. - FY2025MitigatedAnnual report
「The company absorbed the substantial increases in prices for materials and equipment, including steel, and labor costs through the consecutive construction of handy-size bulk carriers, which have a low steel-cost ratio in manufacturing costs, higher operating volumes, stronger negotiating power from bulk purchases through its international procurement network, and group-wide cost reduction efforts involving design, manufacturing, procurement and other functions, achieving substantial increases in both revenue and profit.」
Although equipment and labor costs continued to rise, the Company absorbed the impact through vessel-type selection, expanded operating volumes, international procurement, bulk purchasing and cost reductions. - FY2025-H1MitigatedAnnual report
「The company absorbed the substantial increases in prices for materials and equipment, including steel, and labor costs through the consecutive construction of handy-size bulk carriers, which have a low steel-cost ratio in manufacturing costs, higher operating volumes, stronger negotiating power from bulk purchases through its international procurement network, and group-wide cost reduction efforts involving design, manufacturing, procurement and other functions, achieving substantial increases in both revenue and profit.」
Although equipment and labor costs continued to rise, the Company absorbed the impact through vessel-type selection, expanded operating volumes, international procurement and cost reductions. - FY2024RestatedAnnual report
「During the consolidated fiscal year, despite the impact of soaring material costs, including steel, revenue and profit increased substantially year on year due to the weaker yen, a recovery in operating volume, improved vessel prices and the effects of cost reduction efforts covering labor hours, material costs and other expenses in cooperation with Hakodate Dock Co., Ltd.」
While higher material costs, including steel, continue to pressure earnings, the Company explains the mitigating effects of cost reductions and other measures. - FY2024-Q3RestatedAnnual report
「As domestic prices for materials and equipment, which account for more than half of manufacturing costs, continued to rise and the gap between domestic and overseas prices widened, the effects of Group-wide cost reduction activities, including supply chain restructuring and internationalization, value-engineered design and improvements in production management, began to emerge.」
While domestic prices for equipment continue to remain high, the Company explains the mitigating effects of supply chain restructuring and internationalization, design rationalization, and improved production management. - FY2024-Q1RestatedAnnual report
「Although soaring prices for equipment, particularly steel, substantially increased material costs, which account for more than half of manufacturing costs,」
While soaring prices for equipment, including steel, and higher material costs continue to pressure earnings, the Company also explains the mitigating effects of cost-reduction efforts. - FY2023-Q3RestatedAnnual report
「Although soaring prices for equipment, particularly steel, forced a substantial increase in manufacturing costs,」
While soaring prices for equipment, particularly steel, continue to drive up manufacturing costs, the Company also explains the mitigating effects of cost-reduction efforts and yen depreciation. - FY2023-Q2RestatedAnnual report
「Although the Company was adversely affected by soaring domestic steel prices, the impact was eased by cost-reduction efforts and the continued depreciation of the yen,」
While soaring domestic steel prices continue to pressure earnings, the impact on earnings was eased by cost reductions and yen depreciation. [quantified=false, materialized=true] - FY2022-Q3RestatedAnnual report
「The Company was forced to address the significant earnings pressure caused by unexpectedly large increases in steel prices.」
Unexpectedly large increases in steel prices continue to pressure earnings in the newbuilding business. - FY2022-Q2WorsenedAnnual report
「Steelmakers forced through unexpectedly large price increases due to a global supply shortage caused by lower steel production and export restrictions resulting from China's environmental measures ahead of the Winter Olympics, increased steel demand accompanying the economic recovery in Europe and the United States, and other factors, substantially increasing the construction costs of newbuildings already ordered,」
Against the backdrop of lower steel production, export restrictions and supply shortages caused by increased demand, steelmakers implemented unexpectedly large price increases, substantially raising the construction costs of vessels already ordered. - FY2022-Q1WorsenedAnnual report
「However, Japanese shipbuilders have recently been suddenly asked by domestic steelmakers to reduce supplies of shipbuilding steel and accept unprecedentedly large price increases, citing tight domestic steel supply and demand in both China and South Korea due to a sharp increase in newbuilding volumes, export restrictions imposed by the governments of both countries, and soaring steelmaking raw material costs,」
Against the backdrop of tight steel supply and demand in China and South Korea, export restrictions and higher steelmaking raw material costs, demands arose for reduced supplies of shipbuilding steel and unprecedentedly large price increases. This led to a review of estimated costs for all vessels already ordered and an expected impact of more than ¥7.5 billion. - FY2021WorsenedAnnual report
「Recently, upward pressure on steel prices, the primary material for newbuildings, has intensified due to a sharp increase in demand in China and the recovery of production in Japan's automotive industry, among other factors.」
While disruption in the equipment procurement environment has eased, upward pressure on steel prices has intensified, making the risk from raw material prices clear again. - FY2021-Q3RestatedAnnual report
「Vessel prices remained under pressure, and the Company recorded an operating loss during the cumulative third quarter of the consolidated fiscal year.」
While pressure on construction costs from higher equipment prices and other factors continued, the cost ratio improved, although the impact of vessels ordered at low prices remained. - FY2021-Q2MaterialisedAnnual report
「Operating profit was ¥126 million, down 16.1% year on year, due mainly to sluggish earnings from marine equipment handled by Sasebo Heavy Industries Co., Ltd. as a result of higher material costs.」
Higher material costs led to sluggish earnings from marine equipment and a 16.1% year-on-year decline in operating profit, and the impact of higher raw material prices also materialized during the period. - FY2021-Q1RestatedAnnual report
「Due to the continued construction and delivery of vessels ordered at low prices and persistently high material costs, the operating loss was ¥2,223 million (the same period of the previous year saw an operating loss of ¥5,663 million),」
Persistently high material costs continue to be cited as a factor behind the operating loss. The impact of higher prices continues, but this filing does not indicate any additional increase in prices. - FY2020-Q3WorsenedAnnual report
「Although vessel prices are gradually improving, they have not fully covered construction costs, which have risen due to steel price increases that have continued for several years and the application of new rules.」
While vessel prices are trending higher, the situation in which higher steel prices and construction costs resulting from new rules cannot be fully absorbed continues. - FY2020-Q1WorsenedAnnual report
「A substantial increase in estimated costs for all vessels in the order backlog, based on higher steel prices and increased outsourcing costs to address high operating levels」
In addition to surging steel prices, increased outsourcing costs to address high operating levels were a major factor behind the substantial increase in estimated costs, leading to an increase in the provision for loss on construction contracts. - FY2019MaterialisedAnnual report
「Profitability in the newbuilding business remains difficult due to higher costs resulting from compliance with new regulations and surging steel prices.」
Surging steel prices continue to drive higher costs and deteriorating profitability in the newbuilding business. - FY2019-Q3MaterialisedAnnual report
「Conditions remained difficult for shipyards.」
Higher steel prices increased construction costs, and the impact of steel price hikes emerged as an actual factor behind the operating loss. - FY2019-Q2MaterialisedAnnual report
「Against the backdrop of a substantial increase in manufacturing costs due to global steel price hikes, shipyards have been forced to seek further improvements in vessel prices from shipowners, and contract volumes have recently stagnated.」
Global steel price hikes have materialized as a substantial increase in manufacturing costs, contributing to the operating loss during the quarter and stagnating contract volumes. - FY2019-Q1RestatedAnnual report
「The deterioration in profitability caused by sharp increases in shipbuilding steel prices has also slowed the pace of orders in both countries,」
Sharp increases in shipbuilding steel prices and deteriorating profitability continue to be cited as external factors. - FY2018MaterialisedAnnual report
「In addition to weak newbuilding prices, substantial increases in steel prices finalized in the fourth quarter and yen appreciation」
The substantial increase in steel prices finalized in the fourth quarter led to revisions to estimated costs and an increase in the provision for loss on construction contracts. The risk of higher raw material and equipment prices has materialized. - FY2018-Q2RestatedAnnual report
「There are significant variables, including equipment prices and foreign exchange rates, and profitability fluctuates accordingly.」
The structure whereby fluctuations in equipment prices and foreign exchange rates affect profitability continues to be disclosed. - FY2017RestatedAnnual report
「In addition, significant increases from current prices for raw materials and equipment may adversely affect earnings.」
The risk that higher raw material and equipment prices may affect earnings continues to be disclosed. - FY2017-Q3RestatedAnnual report
「In addition, there are significant variables, including equipment prices and foreign exchange rates, and profitability fluctuates accordingly.」
The risk that fluctuations in equipment prices and foreign exchange rates may affect profitability continues to be disclosed. - FY2017-Q2RestatedAnnual report
「The core newbuilding business bases its operations on a product mix under which it orders and builds multiple vessel types, including bulk carriers, tankers and LPG carriers, in order to respond promptly and appropriately to changes in the market.」
The structure whereby fluctuations in equipment prices and foreign exchange rates affect profitability continues to be explained. - FY2017-Q1RestatedAnnual report
「There are significant variables, including equipment prices and foreign exchange rates, and profitability tends to fluctuate accordingly.」
The risk that fluctuations in equipment prices may affect profitability continues to be disclosed. - FY2016First statedAnnual report
「In addition, significant increases from current prices for raw materials and equipment may adversely affect earnings.」
The risk that higher raw material and equipment prices may affect earnings continues to be disclosed.