Raw Material Price Volatility and Supply Security Risk
First written in FY2016. 5 of 19 entries say "Restated". Latest entry: 2026-08-07.
Daido Metal moved to the "Worse" side of this theme in 2026, 3 years after the typical company in this theme (2023).
The whole theme swung hardest in 2018: 3 of 15 companies on the "Worse" side.
1 other company's latest entry also says "Materialised".
- 2026-08-07MaterialisedResults briefing materials
「Although approximately ¥1.42 billion in factors reducing profit arose from higher material and labor costs, we secured approximately ¥1.60 billion in higher profit through the effects of passing higher material and labor costs through to prices and strengthening profitability management.」
Higher material and labor costs emerged as factors reducing operating profit, while the effects of passing those costs through to prices and strengthening profitability management were also reported. - FY2026WorsenedAnnual report
「The Group purchases raw materials such as steel and nonferrous materials, including copper, aluminum, tin and resin materials, which are the principal materials used in bearings. If their prices fluctuate unpredictably due to changes in supply and demand, or if inventory must be secured as a result of tighter Chinese export restrictions, the Group's operating results and financial position may be affected.」
As a highest-priority risk, explicitly identifies the risk of having to secure inventory due to tighter Chinese export restrictions, in addition to conventional price and supply-demand volatility. - FY2026-H1MitigatedAnnual report
「Operating profit was ¥3,891 million, up 43.7% from the previous interim cumulative consolidated period, due mainly to ongoing cost improvement activities in the Powertrain and Life businesses, profit improvement from selling price adjustments, and reduced losses in the Frontier business.」
States that cost improvement activities and selling price adjustments continued in response to higher raw material costs and contributed to profit improvement. quantified is false, materialized is false. - FY2025RaisedAnnual report
「(2) Risk from instability in the supply and demand environment for raw materials (previous fiscal year: highest-priority risk)」
The risk of instability in the supply and demand environment for raw materials was again described as a highest-priority risk, changed from a priority risk in the previous fiscal year. In addition to promoting the principle of ordering from two suppliers, the company continues negotiations with customers to revise prices in response to soaring raw material and fuel prices. - FY2025-H1MitigatedAnnual report
「Adjustments to selling prices and profit improvements from price increases for unprofitable products contributed」
States that adjustments to selling prices and price increases for unprofitable products were pursued in response to rising costs and contributed to profit improvement. - FY2024Risk priority changed from highest priority to priorityAnnual report
「(2) Risk from instability in the supply and demand environment for raw materials (previous fiscal year: highest-priority risk)」
The risk of instability in the supply and demand environment for raw materials continued, but its risk classification changed from "highest-priority risk" in the previous fiscal year to "priority risk." - FY2024-Q3RestatedAnnual report
「During the third quarter cumulative consolidated period, the global economy remained uncertain, including because raw material and energy prices stayed high amid the prolonged situation in Ukraine.」
Persistently high raw material and energy prices and the resulting uncertain cost environment continued. - FY2024-Q2RestatedAnnual report
「During the second quarter cumulative consolidated period, the global economy remained uncertain, with continued concerns over an economic slowdown caused by the prolonged situation in Ukraine and interest rate hikes to curb inflation, as well as persistently high raw material and energy prices.」
Persistently high raw material and energy prices continued, maintaining a cost environment that could affect operating results. - FY2024-Q1RestatedAnnual report
「During the first quarter cumulative consolidated period, the global economy remained uncertain, with concerns over an economic slowdown caused by the prolonged situation in Ukraine and interest rate hikes to curb inflation, as well as soaring raw material and energy prices and sharp exchange-rate fluctuations.」
Reconfirmed the risk environment of continued elevated raw material and energy prices. - FY2023-Q3RestatedAnnual report
「In the Group's operating results, although efforts have been made across the Group to pass higher raw material prices through to selling prices, results were affected by a further increase in raw material and energy costs.」
Higher raw material and energy costs and efforts to pass them through to selling prices continue to affect operating results. - FY2023-Q2WorsenedAnnual report
「In the Group's operating results, although efforts have been made across the Group to pass higher raw material prices through to selling prices, results were affected by a further increase in raw material and energy costs.」
Raw material and energy costs continued to rise, and although the company is advancing price pass-through, the impact on operating results has continued. - FY2023-Q1WorsenedAnnual report
「In the Group's operating results, although efforts have been made across the Group to pass higher raw material prices through to selling prices, results were affected by a further increase in raw material and energy costs.」
Raw material and energy costs increased further and affected operating results. The company also states that it is advancing the pass-through of these costs to selling prices. - FY2021RestatedAnnual report
「The Group will work to reduce costs and secure stable supplies by further reducing material consumption, such as improving yield, strictly implementing the principle of ordering from two suppliers, and strengthening cooperation with suppliers to avoid risks.」
Continuing measures for stable procurement through reduced material consumption, the principle of ordering from two suppliers, and stronger cooperation with suppliers. - FY2020MitigatedAnnual report
「If stable procurement of raw materials is disrupted, timely procurement may become difficult and production activities may be affected, potentially resulting in similar effects. The Group's response will include further reductions in material consumption, such as improving yield, strict implementation of ordering from two suppliers in principle, stronger cooperation with suppliers to avoid risks and secure stable supplies, and efforts to reduce costs.」
As a response to raw material risks, specifies improving yield and, in principle, placing orders with two suppliers, thereby detailing measures for stable procurement. - FY2018MaterialisedAnnual report
「In terms of profit, negative factors included higher material prices and one-time expenses incurred at the two companies, Iino Holdings Co., Ltd. and ATA Casting Technology Japan Co., Ltd.」
States that higher material prices actually emerged as a negative factor for full-year profit. The policy of reducing material consumption and strengthening cooperation with suppliers remains in place. - FY2018-Q3MaterialisedAnnual report
「In terms of profit, although cost improvements from stabilizing operations at North American production sites were achieved, the cost of sales ratio deteriorated due to higher material costs and one-time expenses at the two acquired companies.」
Material costs continued to rise and, despite cost improvements in North America, emerged in actual results as a factor behind the deterioration in the cost of sales ratio. - FY2018-Q2MaterialisedAnnual report
「In terms of profit, in addition to increases in selling, general and administrative expenses associated with higher sales and other factors, operating profit was ¥2,163 million, down 25.3% from the same quarter of the previous year, due in part to material cost increases exceeding expectations and one-time expenses incurred at the two companies referred to above, which joined the Group in the previous consolidated fiscal year, and their Group companies.」
Higher-than-expected material costs emerged in actual results as one factor behind the 25.3% year-on-year decline in operating profit. In addition to the existing policy of reducing material consumption and strengthening cooperation with suppliers, the impact of price increases has become apparent. - FY2017MitigatedAnnual report
「The Group will work to reduce costs and secure stable supplies by further reducing material consumption and strengthening cooperation with suppliers to avoid risks.」
Specifies reductions in material consumption and stronger cooperation with suppliers as measures to address raw material price and procurement risks. - FY2016First statedAnnual report
「The Group purchases raw materials such as steel and nonferrous materials, including copper, aluminum, tin and resin materials, which are the principal materials used in bearings. If the prices of these materials fluctuate unpredictably due to changes in supply and demand, the Group's operating results and financial position may be affected.」
Identifies both price volatility and supply disruptions as risks to operating results and financial position.