Market Price Volatility Risk for Materials and Equipment
First written in FY2016. 10 of 23 entries say "Worsened", first in FY2017. Latest entry: 2026-11-05.
Naikai Zosen moved to the "Worse" side of this theme in 2021, the same year as the typical company in this theme.
The whole theme swung hardest in 2021: 31 of 60 companies on the "Worse" side.
22 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「In addition, the escalating situation in the Middle East has led to higher costs for paint, thinner and related materials, as well as longer delivery times. The company is responding by placing orders with paint manufacturers at an early stage.」
In addition to the existing increases in steel and equipment prices, it newly describes higher costs and longer delivery times for paint, thinner and other items due to the situation in the Middle East. - FY2026-H1RestatedAnnual report
「In addition, although manufacturing costs have risen with higher materials and equipment prices and labor costs, freight and charter rates have not reached compatible levels. Moreover, because shipyards' near-term berth capacity is full, more vessels are scheduled for delivery more than 3 years out, and both shipyards and shipowners are taking a cautious stance toward placing orders.」
Manufacturing costs continue to rise due to higher materials and equipment prices and labor costs, while freight and charter rates remain mismatched. Meanwhile, interim-period profit improved through productivity gains and other measures, and no new deterioration in the price volatility risk itself is described. - FY2025-H1MaterialisedAnnual report
「Profit declined from the previous year because vessels with low profitability accounted for a larger proportion of revenue, due to the impact of higher materials and equipment prices and labor costs.」
Higher materials and equipment prices and labor costs have materialized in actual profit and loss through the revenue mix of low-profitability vessels and lower profit year on year. - FY2024-Q3WorsenedAnnual report
「In terms of earnings, revenue from vessels generating foreign-currency-denominated sales improved due to yen depreciation. However, for domestic vessels, costs estimated when orders were accepted have increased substantially due to sharp rises in steel and equipment prices and higher labor costs resulting from labor shortages, and the challenging situation continues.」
It states that estimated costs at the time of accepting orders have increased substantially due to sharp rises in steel and equipment prices, compounded by higher labor costs resulting from labor shortages. - FY2024-Q2WorsenedAnnual report
「In terms of earnings, newbuild contract prices rose temporarily but have not reached levels sufficient to cover higher construction costs caused by soaring prices for materials and equipment and persistently high steel prices. Excluding the benefit of yen depreciation, earnings remain challenging for both domestic vessels and oceangoing vessels contracted in foreign currencies, including US dollars.」
Higher construction costs due to soaring materials and equipment prices and persistently high steel prices cannot be absorbed through vessel prices, continuing to pressure earnings. - FY2023MitigatedAnnual report
「At present, the company is working to reduce the risk of substantial steel price increases and the resulting rise in equipment prices through measures including reviewing specifications and quantities, improving material yield, placing equipment orders in lots and sourcing overseas.」
Although the risk of higher materials and equipment prices continues, specific measures have been identified, including reviewing specifications and quantities, improving material yield, placing orders in lots and overseas sourcing. - FY2023-Q3RestatedAnnual report
「Although soaring prices for materials and equipment, including steel, put pressure on profit, earnings from foreign-currency-denominated projects increased due to yen depreciation」
While soaring materials and equipment prices continue to put pressure on profit, increased earnings from foreign-currency-denominated projects due to yen depreciation are mitigating the impact. - FY2023-Q2RestatedAnnual report
「Although soaring prices for materials and equipment, including steel, put pressure on profit, earnings from foreign-currency-denominated projects increased due to yen depreciation, resulting in operating profit of ¥248 million, up 29.2% year on year.」
While soaring materials and equipment prices continue to put pressure on profit, increased earnings from foreign-currency-denominated projects due to yen depreciation lifted profit above the same period of the previous year. No reduction in the underlying materials and equipment price risk is described. - FY2023-Q1WorsenedAnnual report
「In addition, compared with the vessels that generated revenue in the same quarter of the previous year, earnings on individual vessels deteriorated due to soaring materials and equipment prices. Operating profit was ¥75 million, down 50.9% year on year, ordinary profit was ¥79 million, down 45.7%, and quarterly net profit attributable to owners of the parent was ¥62 million, down 3.9%.」
Soaring materials and equipment prices led to deterioration in earnings on individual vessels, and operating profit, ordinary profit and profit attributable to owners of the parent were below the same quarter of the previous year. - FY2022-Q3RestatedAnnual report
「However, vessel prices have not reached levels sufficient to absorb cost increases such as substantial steel price hikes and higher equipment prices, and this has directly led to deteriorating earnings on vessels already under contract. Earnings therefore remain extremely challenging.」
It continues to recognize that increases in steel and equipment prices cannot be absorbed through vessel prices and are directly causing deterioration in earnings on vessels already under contract. - FY2022-Q2RestatedAnnual report
「However, vessel prices have not reached levels sufficient to absorb cost increases such as substantial steel price hikes and higher equipment prices, and this has directly led to deteriorating earnings on vessels already under contract. Earnings therefore remain extremely challenging.」
It continues to recognize that increases in steel and equipment prices cannot be absorbed through vessel prices and are directly causing deterioration in earnings on vessels already under contract. - FY2022-Q1WorsenedAnnual report
「However, vessel prices have not reached levels sufficient to absorb cost increases such as substantial steel price hikes and higher equipment prices, and this has directly led to deteriorating earnings on vessels already under contract. Earnings therefore remain extremely challenging.」
It states that increases in steel and equipment prices cannot be absorbed through vessel prices and are directly causing deterioration in earnings on vessels already under contract, making the impact of materials and equipment price risk increasingly concrete. - FY2021MaterialisedAnnual report
「Although the company secured a certain volume of work amid a challenging order environment, rising materials and equipment prices and other factors led to the recognition of a ¥882 million provision for losses on construction contracts.」
Higher materials and equipment prices put pressure on project earnings, materializing in profit and loss through the recognition of a ¥882 million provision for losses on construction contracts. - FY2020-Q3RestatedAnnual report
「In addition, although materials and equipment prices were trending upward, the recovery in vessel prices was delayed by excess newbuild vessel supply, resulting in challenging profitability.」
It continues to recognize that rising materials and equipment prices and the delayed recovery in vessel prices are affecting profitability. - FY2020-Q2RestatedAnnual report
「In addition, although materials and equipment prices were trending upward, the delayed recovery in vessel prices resulted in challenging profitability.」
It continues to recognize that rising materials and equipment prices and the delayed recovery in vessel prices are affecting profitability. - FY2020-Q1WorsenedAnnual report
「The delayed recovery in vessel prices and higher materials and equipment prices are putting pressure on project earnings, resulting in challenging profitability.」
It states that higher materials and equipment prices are actually putting pressure on project earnings, indicating that the previously identified price volatility risk has materialized in profitability. - FY2018RestatedAnnual report
「In the group's core newbuild vessel business, materials and equipment account for a high proportion of manufacturing costs, so market price volatility for these items has a significant cost impact and may affect business performance and financial position.」
It continues to state the risk that fluctuations in materials and equipment prices may affect business performance and financial position, along with the policy of hedging this risk by reflecting prices in new orders. - FY2017WorsenedAnnual report
「The situation is expected to remain one requiring close attention to downside risks to the outlook, including concerns over yen appreciation and higher steel prices.」
It explicitly identifies concerns over higher steel prices in addition to the existing risk of volatility in materials and equipment prices. - FY2016First statedAnnual report
「Because materials and equipment account for a high proportion of manufacturing costs, market price volatility for these items has a significant cost impact and may affect business performance and financial position.」
It states that the company reflects the latest prices of materials and equipment when accepting orders and hedges market volatility risk.