Higher procurement costs due to rising steel prices in China
First written in FY2019-Q1. 4 of 10 entries say "Worsened", first in FY2019-Q3. Latest entry: FY2025-H1.
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- FY2025-H1MitigatedAnnual report
「Higher sales in Thailand, together with lower raw material prices than in the same period of the previous year, among other factors, resulted in revenue of ¥584 million, up 5.7% year on year, and segment profit of ¥30 million, compared with a loss of ¥122 million in the same period of the previous year.」
In Thailand, raw material prices fell from the same period of the previous year, easing the pressure on profitability from soaring raw material prices. - FY2024-Q3RestatedAnnual report
「While sales in Thailand remained broadly flat, the continuing impact of higher raw material prices, among other factors, resulted in revenue of ¥770 million, down 1.0% year on year, and a segment loss of ¥115 million, compared with a loss of ¥152 million in the same quarter of the previous year.」
The impact of soaring raw material prices continued in Thailand, but the segment loss narrowed from the same period of the previous year. - FY2023WorsenedAnnual report
「The company also passed higher raw material and logistics costs, as well as higher import costs resulting from the weaker yen, through to selling prices, while working to strengthen its competitiveness through productivity improvements and cost reductions.」
The impact of soaring raw material prices continued in China, Thailand and elsewhere. Profit in China fell 64.2% despite higher revenue, while Thailand swung from profit to a loss of ¥244 million. It was stated that the group was responding by passing costs on to selling prices and through other measures. - FY2023-Q3Expansion of the impact of soaring raw material pricesAnnual report
「During the nine months ended 31 December of the current fiscal year, our group proceeded with the development of electrification-related products, including electric water pumps, mainly in South Korea, while sales of overseas aftermarket parts remained strong. Although we worked to strengthen competitiveness through productivity improvements and cost reductions, we were affected by soaring raw material prices and persistently high global logistics costs, as well as higher import costs in Japan due to the weaker yen.」
Pressure from soaring raw material prices emerged as a factor behind segment losses in Thailand as well as China and was explicitly identified as a factor affecting the group’s overall performance. - FY2023-Q2RestatedAnnual report
「At 3 consolidated subsidiaries serving as manufacturing sites and 1 consolidated subsidiary serving as a procurement and logistics site, sales of water pumps in the new-vehicle parts market increased, but the results were affected by soaring raw material prices, among other factors. As a result, revenue was ¥2,515 million (up 14.1% year on year) and segment profit was ¥18 million (down 94.7%).」
Soaring raw material prices continued to drive a sharp decline in profit in China despite higher revenue. - FY2023-Q1WorsenedAnnual report
「At 3 consolidated subsidiaries serving as manufacturing sites and 1 consolidated subsidiary serving as a procurement and logistics site, sales of water pumps in the new-vehicle parts market increased, but the results were affected by soaring raw material prices, among other factors. As a result, revenue was ¥1,465 million (up 30.1% year on year) and segment profit was ¥12 million (down 93.2%).」
Procurement cost pressure was explicitly described in terms of soaring raw material prices, rather than the previously cited rise in steel prices in China. Profit in China fell 93.2% despite higher revenue. Similar effects were also reported in Thailand. - FY2019WorsenedAnnual report
「In addition to sluggish sales of OEM parts in South Korea and China and aftermarket parts in the United States, the company was affected by fluctuations in unit prices for OEM parts in South Korea, rising steel prices in China, deteriorating profitability in export transactions in China and Thailand and in the highly competitive US market, and an increase in retirement benefit expenses at a South Korean subsidiary due to actuarial effects on retirement benefit obligations.」
The increase in procurement costs due to rising steel prices continued in the China segment and was explicitly identified as a factor driving the deterioration in full-year performance. - FY2019-Q3WorsenedAnnual report
「Although exports of OEM parts in Europe increased, sales of water pumps in overseas aftermarket parts markets, including Southeast Asia, declined. In addition, as a result of higher procurement costs due to rising steel prices and other factors, net sales amounted to ¥10,767 million, up 2.4% from the same quarter of the previous year, and segment profit amounted to ¥420 million, down 23.6%.」
The increase in procurement costs due to rising steel prices, which had continued in the China segment, was also explicitly identified as a performance factor in the Japan segment, expanding the scope of its impact. - FY2019-Q2RestatedAnnual report
「At 3 consolidated subsidiaries serving as manufacturing sites and 1 consolidated subsidiary serving as a procurement and logistics site, sales of valve spools and water pumps for China's new-vehicle parts market decreased. In addition, profitability deteriorated on the stronger dollar and weaker yuan in dollar-denominated export transactions, and procurement costs increased due to higher steel prices, among other factors. As a result, revenue was ¥1,723 million (down 15.3% year on year) and segment profit was ¥17 million (down 95.4%).」
Higher procurement costs due to rising steel prices in China continued to be reported as a performance factor, along with lower sales and deteriorating foreign-exchange profitability. - FY2019-Q1MaterialisedAnnual report
「In addition to lower sales of valve spools and water pumps for China's new-vehicle parts market, profitability deteriorated on the stronger dollar and weaker yuan in dollar-denominated export transactions, and procurement costs increased due to higher steel prices, among other factors. As a result, revenue was ¥805 million (down 37.4% year on year) and the segment posted a loss of ¥32 million (compared with profit of ¥264 million in the same quarter of the previous year).」
Higher procurement costs due to rising steel prices in China were reported for the first time as an actual driver of segment losses.