Profit margin deterioration due to lower selling prices

「Against this backdrop, in addition to structural reforms, progress in establishing sustainable selling prices and other factors resulted in revenue of ¥201,635 million, up 5.7% year on year, and operating profit of ¥10,917 million, up 145.5% year on year.」

「In addition to structural reforms, progress in establishing sustainable selling prices and other factors resulted in revenue of ¥142,998 million, down 3.7% year on year, and operating profit of ¥3,256 million, up 440.6% year on year.」

「Although the Group worked to establish sustainable selling prices, revenue amounted to ¥190,745 million, down 5.4% year on year, and operating profit amounted to ¥4,447 million, down 18.1% year on year, mainly due to a substantial decline in sales volumes of undercarriage components for construction machinery, a decline in sales volumes of passenger car wheels owing to the impact of certification misconduct issues at domestic automakers, and lower sales volumes at overseas bases.」

「The spread against ferrous scrap prices, the raw material, narrowed due to lower selling prices resulting from stagnant demand and other factors. As a result, Group revenue amounted to ¥51,517 million, down 5.1% year on year, and operating profit amounted to ¥2,782 million, down 39.7% year on year.」

「Against this backdrop, the Group worked to establish appropriate steel material selling prices. In addition to the wider spread over steel scrap prices, its main raw material, the Group optimized its product mix with a focus on profitability. As a result, net sales were ¥83,018 million, up 5.7% year on year, and operating profit was ¥7,679 million, up 27.4%.」

「Against this backdrop, the Group worked to establish appropriate steel material selling prices. In addition to the wider spread over the purchase price of steel scrap, its main raw material, the Group optimized its product mix with a focus on profitability. As a result, net sales were ¥54,262 million, up 8.2% year on year, and operating profit was ¥4,614 million, up 59.4%.」

「Against this backdrop, the Group worked to establish appropriate steel material selling prices. In addition to the wider spread over the purchase price of steel scrap, its main raw material, the Group optimized its product mix with a focus on profitability. As a result, net sales were ¥27,699 million, up 5.0% year on year, and operating profit was ¥2,432 million, up 1,119.5%.」

「Against this backdrop, the Group adjusted steel product selling prices to reflect the costs of ferrous scrap, electricity, auxiliary materials and other items, and pursued orders with a focus on profitability. As a result, revenue amounted to ¥78,555 million, up 18.8% year on year, and operating profit amounted to ¥6,026 million, compared with an operating loss of ¥323 million in the same period of the previous year.」

「Against this backdrop, the Group worked to optimize steel material selling prices in line with the costs of steel scrap, energy, auxiliary materials and other items and pursued orders with a focus on profitability. As a result, net sales were ¥50,144 million, up 18.4% year on year, and operating profit was ¥2,895 million, compared with an operating loss of ¥38 million in the same period of the previous fiscal year.」

「As a result of adjusting steel product selling prices to reflect the costs of ferrous scrap, energy, auxiliary materials and other items, and promoting sales of higher-margin products, revenue amounted to ¥26,387 million, up 75.0% year on year, and operating profit amounted to ¥199 million, compared with an operating loss of ¥493 million in the same period of the previous year.」

「However, the company was unable to pass the increased costs resulting from higher ferrous scrap and energy prices through to steel product selling prices quickly enough, resulting in an operating loss of ¥323 million, compared with operating profit of ¥944 million in the same period of the previous year.」

「However, the company was unable to pass the increased costs resulting from higher ferrous scrap prices through to steel product selling prices quickly enough, resulting in an operating loss of ¥38 million, compared with operating profit of ¥671 million in the same period of the previous year.」

「Although the company worked to improve steel product selling prices, it was unable to pass the increased costs resulting from higher ferrous scrap prices through to selling prices quickly enough, resulting in an operating loss of ¥493 million, compared with operating profit of ¥671 million in the same period of the previous year.」

「Although the company worked to reduce costs through emergency earnings improvement measures, operating profit was affected by the rise in ferrous scrap prices, which preceded the improvement in selling prices, and amounted to ¥944 million, down 73.5% year on year.」

「However, as steel scrap prices rose, selling prices remained weak, resulting in net sales of ¥32,825 million, down 11.2% year on year, and operating profit of ¥671 million, down 68.6%.」

「Against this backdrop, the Group implemented cost reductions through emergency profit improvement measures and offset the decline in domestic demand with exports, but steel product selling prices fell and the spread against scrap steel purchase prices narrowed.」

「However, the spread between steel material selling prices and steel scrap purchase prices widened, and efforts to secure sales volume and continue cost improvements resulted in operating profit of ¥4,142 million, up 84.3% from the previous fiscal year.」

「Against this backdrop, the Group maintained sales volume year on year, but lower selling prices resulted in net sales of ¥56,104 million, down 5.7% year on year. However, the spread between selling prices and steel scrap prices widened, and continued cost improvements resulted in operating profit of ¥3,560 million, up 558.2% year on year.」

「Against this backdrop, lower sales volume and other factors resulted in net sales of ¥36,975 million, down 9.8% year on year. However, maintaining selling prices widened the spread over steel scrap prices, and continued cost improvements resulted in operating profit of ¥2,139 million, up 65.0% year on year.」

「Against this backdrop, the Group increased sales volumes and worked to improve selling prices, resulting in net sales of ¥40,996 million, up 23.6% year on year.」

「Against this backdrop, the Group worked to improve selling prices amid expanding demand for steel materials. As a result, the spread over steel scrap prices widened, and net sales were ¥33,164 million, up 9.6% year on year, while operating profit was ¥1,676 million, up 58.8%.」

「In addition to the wider spread between selling prices and scrap steel prices, increased demand for steel products used in undercarriage components for construction machinery supplied to the automotive and industrial machinery components business resulted in operating profit of ¥1,092 million, up 87.1% year on year.」

「In addition, as the spread between selling prices and scrap steel prices narrowed, operating profit was ¥2,449 million, down 30.8% year on year.」

「In addition, as the spread between selling prices and scrap steel prices narrowed, operating profit was ¥1,055 million, down 33.7% year on year.」

「However, as selling prices declined and the spread against scrap steel narrowed, operating profit was ¥584 million, down 35.9% year on year.」

「The Group operates in highly competitive markets for steel and automotive and industrial machinery components. Although the Group seeks to secure profits through procurement efforts and productivity improvements, selling price declines exceeding those efforts could result in margin deterioration.」