Margin decline due to manufacturers’ price increases and rising logistics and labor costs
First written in FY2019. 8 of 18 entries say "Restated". Latest entry: 2026-08-21.
Onoken moved to the "Worse" side of this theme in 2019, 2 years before the typical company in this theme (2021).
The whole theme swung hardest in 2022: 68 of 108 companies on the "Worse" side.
30 other companies' latest entry also says "Materialised".
- FY2026RestatedAnnual report
「In terms of earnings, in addition to the impact of lower revenue, higher depreciation expenses associated with capacity expansion and other factors resulted in operating income of ¥4.740 billion, down 30.4% from the previous fiscal year, and ordinary income of ¥4.711 billion, down 31.7%.」
Higher depreciation expenses associated with capacity expansion materialized as a factor behind lower earnings, together with the decline in revenue, in the full-year results. - FY2026-H1RestatedAnnual report
「In terms of earnings, selling, general and administrative expenses increased due to higher personnel expenses associated with an increase in headcount and base-pay increases, as well as higher costs and depreciation expenses related to capital investment,」
Higher personnel expenses due to increased headcount and base-pay increases, together with higher capital investment costs and depreciation expenses, were identified as factors continuing to push up selling, general and administrative expenses. - FY2025-H1RestatedAnnual report
「In terms of earnings, selling, general and administrative expenses increased due to higher personnel expenses associated with an increase in headcount and base-pay increases, as well as higher costs and depreciation expenses related to capital investment for the development of operating locations,」
Higher personnel expenses due to increased headcount and base-pay increases, together with higher capital investment costs and depreciation expenses related to the development of operating locations, were identified as factors continuing to push up selling, general and administrative expenses. - FY2024-Q3RestatedAnnual report
「In terms of earnings, revenue increased as sales in the steel products sales business and the construction contracting business rose. However, higher freight charges due to soaring fuel costs, higher personnel expenses due to increases in headcount and wages, and higher depreciation expenses due to capacity expansion caused selling, general and administrative expenses to increase, resulting in operating income of ¥6.088 billion, down 17.1% year on year, and ordinary income of ¥6.178 billion, down 17.3%.」
Continued increases in freight charges due to soaring fuel costs, personnel expenses due to increases in headcount and wages, and depreciation expenses due to capacity expansion became factors behind declines in operating and ordinary income despite higher revenue. - FY2024-Q2WorsenedAnnual report
「Selling, general and administrative expenses increased due to higher personnel expenses associated with an increase in headcount and base-pay increases, as well as higher costs for capital investment related to the development of operating locations, resulting in operating income of ¥4.220 billion, down 20.3% year on year, and ordinary income of ¥4.349 billion, down 19.1%.」
In addition to the previous increases in personnel and facilities-related expenses, the increase in headcount, base-pay increases and capital investment costs related to the development of operating locations were explicitly identified as factors behind higher selling, general and administrative expenses, resulting in a wider decline in earnings. - FY2024-Q1MaterialisedAnnual report
「In terms of earnings, increases in the unit prices of merchandise inventories and in freight charges, personnel expenses and other selling, general and administrative expenses resulted in operating income of ¥2.212 billion, down 24.1% year on year, ordinary income of ¥2.314 billion, down 21.8%, and quarterly net income attributable to owners of the parent of ¥1.529 billion, down 21.4%.」
Higher unit prices of merchandise inventories and increases in freight charges, personnel expenses and other costs materialized as deteriorating profit margins and earnings, with operating income down 24.1% year on year. - FY2023-Q3WorsenedAnnual report
「In the steel products sales business, profit margins declined as higher procurement unit prices weighed on earnings while steel market prices remained high, and the decline in margins continued as market prices gradually weakened. As a result, profit decreased substantially. In addition, selling, general and administrative expenses increased due to higher freight charges resulting from soaring fuel costs, higher personnel expenses due to an increase in headcount, and higher depreciation expenses due to capacity expansion, resulting in operating income of ¥7.348 billion, down 26.7% year on year.」
In addition to lower profit margins due to higher procurement unit prices and weakening market conditions, freight charges rose because of soaring fuel costs, personnel expenses increased due to a larger workforce, and depreciation expenses rose due to capacity expansion, resulting in a 26.7% year-on-year decline in operating income. - FY2023-Q2MaterialisedAnnual report
「In terms of earnings, sales volumes in the steel products sales business declined from the same period of the previous year. Amid persistently high market prices, profit margins declined, particularly on sales of inventory, as higher unit procurement prices raised inventory unit costs. In addition, higher selling, general and administrative expenses, mainly due to increased personnel expenses, resulted in operating income of ¥5.294 billion, down 22.8% year on year, and ordinary income of ¥5.373 billion, down 23.2%.」
Higher procurement and inventory unit costs and increased selling, general and administrative expenses, mainly due to higher personnel expenses, materialized as lower profit margins and declines in operating and ordinary income. - FY2023-Q1MaterialisedAnnual report
「In terms of earnings, increases in personnel expenses, taxes and dues, and depreciation expenses within selling, general and administrative expenses resulted in operating income of ¥2.914 billion, down 5.2% year on year, ordinary income of ¥2.960 billion, down 6.1%, and quarterly net income attributable to owners of the parent of ¥1.945 billion, down 4.5%.」
Increases in personnel expenses, taxes and dues, and depreciation expenses led to higher selling, general and administrative expenses and became factors behind the decline in operating income and other earnings. - FY2022RestatedAnnual report
「Against this backdrop, in the steel products sales business, amid continued increases in steel product market prices, our group worked to pass these increases through to selling prices and actively expanded processing facilities at each location, including the establishment and expansion of locations, to increase value added, thereby pursuing higher sales volumes and earnings through the use of inventory products.」
The company has reaffirmed its policy of working to pass higher procurement prices on to selling prices. - FY2022-Q3RestatedAnnual report
「In the steel products sales business, amid continued increases in steel product market prices, we worked to reflect these increases in selling prices while actively expanding processing facilities to increase value added, thereby pursuing higher sales volumes and earnings.」
In response to the cost environment resulting from rising steel market prices, efforts are being made to reflect higher costs in selling prices. Passing on costs continues to be identified as an issue requiring action. - FY2022-Q2RestatedAnnual report
「In our steel products sales business, we are working to reflect higher procurement costs resulting from rising market prices under manufacturer-led conditions in selling prices,」
Higher procurement costs resulting from rising steel market prices have continued, and efforts are being made to reflect them in selling prices. Passing on costs continues to be identified as a challenge. - FY2022-Q1WorsenedAnnual report
「In our steel products sales business, we are focusing on passing on higher procurement costs, resulting from rising steel product market prices under manufacturer-led conditions, to selling prices,」
Higher procurement costs resulting from rising steel market prices materialized, and passing these costs on to selling prices was identified as a challenge. Unlike the decline in profit margins caused by manufacturers' price increases and rising logistics and labor costs, the risk of passing on procurement costs has become concrete. - FY2019MaterialisedAnnual report
「Although net sales increased, manufacturers' pricing pressure intensified, while rising logistics and labor costs, as well as an increase in the provision for doubtful accounts, caused profit margins to decline.」
Manufacturers' pricing pressure and increases in logistics costs and labor costs, together with an increase in the provision for doubtful accounts, resulted in a full-year decline in profit margins and lower earnings.