Surging Labor, Processing and Other Costs
First written in FY2024-Q2. 4 of 9 entries say "Mitigated", first in FY2025. Latest entry: FY2027-H1.
3 other companies' latest entry also says "Mitigated".
- FY2027-H1MitigatedAnnual report
「In terms of earnings, in addition to passing on cost increases for materials, labor and other items through prices, we worked to reduce costs and expenses. As a result, operating profit was ¥375 million, up 72.6% year on year, and ordinary profit was ¥307 million, up 96.2%.」
Although cost increases for materials, labor and other items have continued, operating profit and ordinary profit exceeded the levels recorded in the same period of the previous year as a result of price pass-through, cost reductions and expense cuts. The impact of high costs on earnings shifted toward mitigation during the interim period. - FY2026WorsenedAnnual report
「Wages and other expenses are also expected to continue rising in the future.」
The company expects high labor, processing and other costs to continue. Although it advanced cost pass-through and cost reductions, operating income fell 26.7% from the previous fiscal year. - FY2026-H1MitigatedAnnual report
「In terms of profit and loss, the company worked to reduce costs and expenses and passed higher material and labor costs and other cost increases through to selling prices, resulting in operating income of ¥217 million, up 199.1% year on year, and ordinary income of ¥156 million, up 294.6% year on year.」
Although material and labor costs have continued to rise, cost reductions, expense cuts and passing on higher costs enabled both operating income and ordinary income to exceed the prior-year period. The impact of higher costs on results has consequently begun to ease. - FY2025MitigatedAnnual report
「The company worked to pass higher material and labor costs and other cost increases through to selling prices and to reduce costs, resulting in operating income of ¥505 million (an operating loss of ¥422 million in the previous consolidated fiscal year) and ordinary income of ¥435 million (an ordinary loss of ¥448 million in the previous consolidated fiscal year).」
Although high material and labor costs have continued, passing on higher costs and reducing costs caused both operating and ordinary income to turn from losses in the previous fiscal year to profits, easing the impact on results for the current fiscal year. - FY2025-H1RestatedAnnual report
「In the automotive industry to which our group belongs, raw-material and energy prices remain elevated and labor costs continue to rise, while production cuts due to certification issues, natural disasters and other factors, as well as declining sales by Japanese automakers in the Chinese market, have left the outlook uncertain.」
Rising labor costs continue to be cited as a factor making the automotive industry environment uncertain. Meanwhile, the company has worked to pass on higher costs and reduce costs, securing operating income for the interim period. - FY2024-Q3MaterialisedAnnual report
「In terms of profit and loss, because passing higher raw material and energy prices, processing costs and other cost increases through to selling prices has taken time, and because sales to Japanese customers in China declined, among other factors, the company posted an operating loss of ¥296 million (an operating loss of ¥86 million in the same quarter of the previous year) and an ordinary loss of ¥302 million (an ordinary loss of ¥148 million in the same quarter of the previous year).」
Higher raw-material, energy and processing costs, together with delays in passing costs on to customers, have materialized in the company's results as operating and ordinary losses. - FY2024-Q2First statedAnnual report
「Although parts-supply constraints caused by semiconductor shortages have eased and automotive production is recovering, the outlook remains uncertain due to persistently high raw-material and energy prices, rising labor costs and the delayed recovery in sales by Japanese automakers in China.」
The company identified rising labor costs for the first time as a factor making the operating environment uncertain even as automotive production recovers. It also stated that higher processing and other costs and delays in passing those costs on to customers affected operating losses.