Surging Metal Element Prices and Difficulty Passing Costs Through to Product Prices
First written in FY2016. 6 of 17 entries say "Mitigated", first in FY2024-Q1. Latest entry: 2026-10-27.
Fuji Oozx moved to the "Worse" side of this theme in 2022, the same year as the typical company in this theme.
The whole theme swung hardest in 2018: 3 of 6 companies on the "Worse" side.
2 other companies' latest entry also says "Mitigated".
- FY2026MaterialisedAnnual report
「Although revenue increased, operating profit decreased due to higher costs associated with preparing for increased production, the effects of tariffs, higher labor costs, and surging prices for various materials.」
Costs for various materials, labor, and tariffs actually increased, and operating profit decreased by ¥110 million from the previous fiscal year even as revenue increased. - 2026-05-13WorsenedEarnings
「増産対応に向けた費用の増加、関税の影響、労務費の増加、諸資材価格の高騰等により、営業利益は減益となりました。」
費用増加、関税、労務費、諸資材価格の高騰が営業利益の減少要因として実績化した。 - FY2026-H1MitigatedAnnual report
「In addition to higher sales as described above, operating profit and ordinary profit increased year on year as a result of continued negotiations to pass through higher labor costs resulting from wage increases to selling prices, along with ongoing cost-reduction activities.」
Continued cost-reduction activities and negotiations to pass through higher labor costs to selling prices are described as measures addressing rising costs and as factors contributing to increases in operating profit and ordinary profit. - FY2025MitigatedAnnual report
「In addition to higher sales as described above, progress was made in cost improvement activities through continued thorough fixed-cost reductions and in passing higher labor costs resulting from wage increases through to selling prices. Operating profit and ordinary profit increased year on year.」
It is stated that, in response to rising costs, cost improvements through fixed-cost reductions and the passing through to selling prices of higher labor costs have progressed. The risk of surging raw material and energy prices itself continues to be listed under business and other risks. - FY2025-H1MitigatedAnnual report
「Progress has been made in cost improvement activities through continued, thorough reductions in fixed costs and in passing through to selling prices the increase in labor costs resulting from wage increases.」
It is stated that, in response to rising costs, cost improvements through fixed-cost reductions and the passing through to selling prices of higher labor costs have progressed. - FY2024-Q1MitigatedAnnual report
「As a result of the effect of passing through increases in raw material and energy prices, an initiative pursued since the previous fiscal year, domestic sales increased 15.3% year on year, while overseas sales decreased 15.4%. Combined domestic and overseas sales increased 5.6%.」
Passing through increases in raw material and energy prices is described as a factor improving sales and profit, indicating progress in addressing the effects of difficulty passing through price increases. However, elevated costs themselves have continued. - FY2023MaterialisedAnnual report
「As procurement costs continued to rise last year, a six-month sliding gap occurred before the increases were reflected in prices, resulting in lower profitability.」
Increases in raw material and energy costs and delays in passing them through to prices actually occurred, resulting in lower profitability due to a six-month sliding gap. It is stated that the Company gained the understanding of many customers in negotiations on passing through price increases. - FY2023-Q3MaterialisedAnnual report
「Although we continue to pursue measures to improve profitability, including cost improvement activities through thorough reductions in fixed costs, profit decreased year on year due to lower overseas sales and increases in raw material and energy costs.」
Raw material and energy costs actually increased, and although measures such as fixed-cost reductions were implemented, profit decreased year on year. - FY2023-Q2MaterialisedAnnual report
「We continued to implement measures to improve earnings, including cost improvement through continued thorough reductions in fixed costs, but profit declined year on year due to lower sales and increases in raw material and energy costs.」
Raw material and energy costs actually increased, and although measures such as fixed-cost reductions were implemented, profit decreased year on year. - FY2023-Q1MaterialisedAnnual report
「We continued to implement measures to improve earnings, including cost improvement through continued thorough reductions in fixed costs, but profit declined year on year due to lower sales and increases in raw material, energy and transportation costs.」
Raw material costs, energy costs, and transportation costs actually increased, and although measures such as fixed-cost reductions were implemented, profit decreased year on year. - FY2022ReframedAnnual report
「Risks from surging raw material and energy prices: The Group purchases the raw materials it uses, primarily steel products, from its parent group's companies, but a risk may arise that significant price increases will affect operations due to delays in passing the increases through to customers. In addition, a significant rise in energy prices, including electricity prices, may create a risk of affecting the Group's management and financial position.」
The former risk related to metal prices has been reorganized to include energy prices such as electricity and delays in passing through price increases, in addition to steel prices. Countermeasures including a surcharge system, electricity contracts, and solar power generation are also described. - FY2019DroppedAnnual reportThe 8 items listed under business and other risks for FY2019 do not contain a specific description concerning surging metal prices and difficulty passing costs through to product prices.
- FY2018RestatedAnnual report
「The Group's products contain large amounts of metal elements whose prices are heavily influenced by international market prices. If the prices of these metal elements surge, the resulting increase in raw material prices may deteriorate performance to the extent that the increase cannot be passed through to product prices.」
The risk of deteriorating performance due to surging metal prices and difficulty passing costs through to product prices is reiterated. - FY2017RestatedAnnual report
「The Group's products contain large amounts of metal elements whose prices are heavily influenced by international market prices. If the prices of these metal elements surge, the resulting increase in raw material prices may deteriorate performance to the extent that the increase cannot be passed through to product prices.」
The risk of deteriorating performance due to surging metal prices and difficulty passing costs through to product prices continues to be noted. - FY2016First statedAnnual report
「The Group's products contain large amounts of metal elements whose prices are heavily influenced by international market prices. If the prices of these metal elements surge, the resulting increase in raw material prices may deteriorate performance to the extent that the increase cannot be passed through to product prices.」
The difference between raw material prices and product prices is identified as a risk that may affect performance.