Rising Raw Material and Component Prices
First written in FY2016. 8 of 9 entries say "Worsened", first in FY2023-Q1. Latest entry: FY2026.
The whole theme swung hardest in 2022: 122 of 167 companies on the "Worse" side.
- FY2026WorsenedAnnual report
「The business environment going forward is expected to remain subject to considerable uncertainty, including developments in geopolitical risks, higher raw material and logistics costs, and prolonged inflation.」
Regarding the risk of higher raw material and parts prices, higher raw material and logistics costs and prolonged inflation were indicated as likely to continue alongside geopolitical risks. - 2026-05-08WorsenedRevision of earnings forecasts
「In addition to uncertainty over the outlook for the situation in the Middle East, the business environment is expected to remain challenging due to risks in materials procurement, higher raw-material and logistics costs, and the impact on demand of prolonged inflation.」
Materials procurement, raw-material and logistics costs, and the impact of prolonged inflation on demand continued to be cited as factors affecting the business environment in the following fiscal year. - FY2026-H1WorsenedAnnual report
「Against this backdrop, the sales environment surrounding the company remains challenging, as higher costs and delayed demand recovery have added to the difficulties.」
Higher costs and delayed demand recovery continued to be identified as factors making the sales environment more difficult, alongside price competition and geopolitical uncertainty. - FY2025WorsenedAnnual report
「From the second half onward, the Thai baht, which is a cost currency for the Group, strengthened on its own, and foreign exchange also became a negative factor. Despite the challenging conditions, we steadily converted higher unit sales, led by new models, into earnings while thoroughly reducing expenses, resulting in a full-year outcome above the outlook revised in February 2025.」
Regarding cost pressures, the foreign exchange impact of the stronger Thai baht and the cost burden were identified as factors weighing on full-year results. - FY2024WorsenedAnnual report
「Full-year operating profit was ¥191.0 billion, up ¥0.5 billion year on year, as improvements in selling prices resulting from a better sales mix and favourable foreign exchange rates offset sluggish overall demand in some ASEAN regions, intensified competition as vehicle supply constraints eased, and higher material and transportation costs.」
Higher material and transportation costs appeared in the results as a burden on operating profit alongside weak ASEAN demand and intensified competition. It was explained that these factors were offset by improved selling prices and favourable foreign exchange rates. - FY2024-Q2WorsenedAnnual report
「The first half of fiscal 2023 was marked by a challenging operating environment, including shortages of shipping capacity and semiconductors, declining total demand centered on ASEAN, and persistently high material costs caused by inflation.」
Persistently high material costs caused by inflation and other factors were identified as a burden on the business environment alongside semiconductor shortages and weaker demand. - FY2023-Q3WorsenedAnnual report
「Going forward, the surge in material costs and semiconductor shortages do not appear likely to ease in the short term, and are expected to continue affecting production and sales volumes.」
Material costs and semiconductor shortages are not expected to ease in the short term, and their impact on production and sales volumes is expected to continue. - FY2023-Q1WorsenedAnnual report
「Although all countries assume that the recovery trend in demand will continue, uncertainty remains, including the impact on consumer purchasing appetite of higher crude oil prices and inflation triggered by the worsening situation in Ukraine, as well as production constraints caused by parts shortages. While monitoring these developments, we will pursue sales initiatives in each country.」
Regarding the external environment for raw material and parts prices, higher crude oil prices and inflation triggered by the situation in Ukraine, together with production constraints caused by parts shortages, were identified as sources of uncertainty for demand and sales. - FY2016First statedAnnual report
「If the manufacturing costs of our products rise due to changes in demand and market conditions, this could have a material impact on the Group's results of operations or financial condition.」
Rising manufacturing costs due to changes in demand for raw materials and parts and in market conditions are identified as a risk.