Insufficient Pass-Through of Rising Raw Material and Component Prices
First written in FY2016. 4 of 7 entries say "Worsened", first in FY2022-Q3. Latest entry: FY2023-Q3.
The whole theme swung hardest in 2022: 122 of 167 companies on the "Worse" side.
- FY2023-Q3WorsenedAnnual report
「In Japan as well, the outlook for the economy remains difficult to assess and forecasting the future is challenging, owing to rising prices accompanying sharp exchange-rate fluctuations, production adjustments caused by semiconductor supply shortages, and higher logistics costs resulting from labor shortages.」
The risks related to rising raw material and component prices and supply constraints continue to identify rising prices caused by sharp exchange-rate fluctuations, customers' production adjustments caused by semiconductor shortages, and higher logistics costs resulting from labor shortages as factors affecting the operating environment. - FY2023-Q2WorsenedAnnual report
「During the cumulative second quarter of the fiscal year, the global economy showed signs of recovery as efforts to prevent the spread of COVID-19, vaccination programs and the easing of restrictions on activity progressed. At the same time, however, uncertainty has continued, with concerns about an economic downturn remaining difficult to dispel because of soaring energy resource prices resulting from heightened geopolitical risks and monetary policies in various countries aimed at addressing accelerating inflation. In Japan as well, the outlook for the economy remains difficult to assess and forecasting the future is challenging, owing to rising prices accompanying the rapid depreciation of the yen and higher logistics costs resulting from labor shortages.」
The risks related to rising raw material and component prices specifically identify soaring energy resource prices, inflation, rising prices caused by the depreciation of the yen, and higher logistics costs resulting from labor shortages as factors affecting the operating environment. - FY2023-Q1RestatedAnnual report
「Downside risks also materialized, including surging raw material prices, semiconductor supply shortages, and the prolonged worsening of the situation in Ukraine.」
The previously identified supply and price-increase risks, including surging steel and other raw material prices and semiconductor shortages, remain evident, but no new deterioration from the prior filing is noted. - FY2022WorsenedAnnual report
「The global spread of COVID-19 continued to affect economic activity through successive resurgences driven by variants, while downside risks also materialized, including surging raw material prices, particularly steel, semiconductor shortages, logistics disruptions caused by a lack of containers, and the worsening situation in Ukraine.」
In addition to the previously identified risks of rising raw material prices and insufficient pass-through, surging steel prices, semiconductor shortages, and logistics disruptions caused by a lack of containers are explicitly identified as actual downside factors in the operating environment. - FY2022-Q3WorsenedAnnual report
「Meanwhile, the outlook remains uncertain due to the spread of variants and increases in crude oil and raw material prices.」
In connection with the previously identified risk of insufficient pass-through of raw material price increases, increases in crude oil and raw material prices are explicitly identified as current factors contributing to uncertainty. - FY2017RestatedAnnual report
「The prices of procured raw materials and other inputs are significantly affected by international commodity markets. If increases in the prices of raw materials and other inputs cannot be sufficiently reflected in the Company's selling prices, ... this could materially affect business performance.」
The increase in raw material and component prices and insufficient pass-through to selling prices continue to be identified as risks. - FY2016First statedAnnual report
「The prices of procured raw materials and other inputs are significantly affected by international commodity markets. If increases in the prices of raw materials and other inputs cannot be sufficiently reflected in the Company's selling prices, or if reductions in selling prices cannot be sufficiently reflected in the prices of raw materials and components, this could materially affect business performance.」
The disclosure identifies fluctuations in procurement prices due to international commodity markets and insufficient pass-through to selling prices as risks.