Rising Raw Material and Processing Costs

「On the production side, while the effects of higher raw material prices and processing fees at domestic factories continued, the company steadily advanced cost-reduction measures, including reducing overseas logistics costs and increasing the overseas production ratio.」

「As a result, although the company advanced measures to improve margins, including shifting production overseas and revising prices, it was unable to contain rising costs, and the gross profit margin fell 3.3 percentage points year on year to 39.5%.」

「Regarding earnings, the company sought to reduce costs by shifting production from Japan to overseas, but higher costs from the weaker yen, raw material price revisions, and increases in domestic labor and logistics costs resulted in a gross profit margin of 39.8%, down 3.4 percentage points year on year.」

「As in the previous year, the company was significantly affected by surging raw material prices following repeated price revisions for materials. Domestic production was also affected by higher labor costs following an increase in the minimum wage.」

「Regarding earnings, higher raw material costs, increased domestic processing fees, and exchange rates significantly weaker against the yen than in the same period of the previous year increased costs, although」

「Although higher raw material costs, increased processing fees at domestic factories, and exchange rates significantly weaker against the yen than in the same period of the previous year increased costs, the shift effect from a higher overseas production ratio and sales price revisions resulted in a gross profit margin of 43.2%, up 0.3 percentage points year on year.」

「Regarding production, although higher raw material costs, increased processing fees at domestic factories, and exchange rates that were weaker against the yen than in the same period of the previous year increased costs, the shift effect from a higher overseas production ratio and sales price revisions resulted in a gross profit margin of 44.0%, up 1.2 percentage points year on year.」

「On the production side, the company was affected by higher prices for raw materials, including petroleum-derived materials, in both domestic and overseas production. Domestic production was also affected by higher labor costs following an increase in the minimum wage.」

「Regarding earnings, the company was significantly concerned about the impact of sharp changes in the external environment on costs. However, profitability improved through a higher overseas production ratio, stabilization from forward foreign-exchange contracts, improvements in overseas logistics conditions, and product price revisions, bringing the gross profit margin for the cumulative consolidated second quarter to 42.9%. In the cumulative consolidated third quarter, continued efforts to improve profitability resulted in a margin of 43.8%, down 0.9 percentage points year on year.」

「Regarding earnings, the initial outlook for the current fiscal year anticipated significant cost pressures from such factors as a sharp rise in raw material prices due to surging crude oil prices, higher logistics and labor costs, and rapid yen depreciation caused by major changes in the external environment. The gross profit margin for the cumulative consolidated second quarter was therefore planned at 41.5%, but profitability improved through a higher overseas production ratio, stabilization from forward foreign-exchange contracts, easing overseas logistics conditions, and product price revisions, resulting in a margin of 42.9%, down 1.8 percentage points year on year.」

「Regarding production, higher raw material costs, increased processing fees at domestic factories, and exchange rates that were weaker against the yen than in the same period of the previous year resulted in a gross profit margin of 42.8%, down 2.6 percentage points year on year.」

「Regarding production, major changes in the external environment, including a sharp rise in raw material prices due to surging crude oil prices, higher logistics and labor costs, and the rapid depreciation of the yen in foreign-exchange markets, are expected to have a significant impact on costs.」

「Although the company arranged forward foreign-exchange contracts to mitigate the impact, the yen's sharp depreciation resulted in a gross profit margin of 44.7% for the cumulative consolidated third quarter, down 1.3 percentage points year on year.」

「Although the yen depreciated sharply, the company arranged forward foreign-exchange contracts to mitigate the impact. As a result, the gross profit margin for the cumulative consolidated second quarter fell 1.4 percentage points year on year to 44.7%.」

「Regarding production, higher processing fees at domestic factories and exchange rates that were weaker against the yen than in the same period of the previous year resulted in a gross profit margin of 45.4%, down 1.1 percentage points year on year.」

「On the production side, the company faced a challenging operating environment, including a sharp increase in sales volume due to timing differences and sudden changes in the products sold. To address these issues, it used small-lot, multi-product production in Japan and emergency imports of products manufactured overseas, while also being affected by disruptions to ocean transportation and surging freight rates stemming from the global container shortage that began last autumn.」

「In response to higher overseas logistics costs caused by the global container shortage and reduced shipping services, the company diversified its logistics operations and implemented measures to minimize the impact. As a result, the gross profit margin for the cumulative consolidated second quarter fell 0.2 percentage points year on year to 46.1%.」

「The gross profit margin fell 0.9 percentage points year on year to 45.8%, as profit from emergency domestic production declined, while higher costs resulting from increases in general raw material prices, including fabric, and domestic labor costs weighed on results.」

「Although favorable forward exchange contracts had a positive effect, gross margin was affected by the expansion of domestic production at short notice to support production of COVID-19-related isolation gowns and meet the surge in demand for surgical wear, as well as higher overall raw material costs, including fabric, and higher domestic labor costs. As a result, gross margin declined 0.7 percentage points year on year to 46.0%.」

「Gross margin benefited from being able to arrange relatively favorable forward exchange contracts amid volatile currency markets and from cost reductions through a higher proportion of overseas production. However, higher overall raw material costs, including fabric, and higher domestic labor costs drove up costs, resulting in a 0.3 percentage-point year-on-year decline in gross margin to 46.3%.」

「Although the currency environment is expected to provide benefits from yen appreciation through future forward exchange contracts, higher raw material costs and delays in shifting production overseas caused gross margin to decline 0.8 percentage points year on year to 46.2%.」

「Although depreciation expense associated with the new factory (sewing center), real estate acquisition tax and higher processing costs due to rising overseas labor costs increased costs, the benefits of shifting production overseas and arranging forward exchange contracts during periods of yen appreciation helped contain the increase. As a result, gross margin was 46.7%.」

「Gross margin was maintained at the previous year's level as the impact of higher overseas labor costs was offset by the stronger yen effect from forward exchange contracts and the increased proportion of overseas production. However, special-factor costs associated with the establishment of a new factory increased costs by 0.3%, resulting in a 0.3 percentage-point year-on-year decline in gross margin to 46.7%.」

「Gross margin benefited from being able to arrange forward exchange contracts at a stronger yen rate than initially assumed and from cost reductions through a higher proportion of overseas production. However, higher overseas labor costs, increased depreciation expense associated with the establishment of a new factory and one-off real estate acquisition tax reduced gross margin by 0.2 percentage points year on year to 46.6%.」

「In production, costs increased owing to higher processing costs resulting from the sustained weakness of the yen and increased labor costs, as well as depreciation expense incurred following the establishment of a new sewing center, although」

「Although costs rose owing to increased overseas production costs resulting from the weaker yen in the cost-accounting exchange rate following a decline in forward bookings during periods of yen appreciation, and higher labor costs resulting from domestic labor shortages, the benefits of shifting production overseas and strong sales of new product lines helped offset the increase. As a result, gross margin was 47.0%.」

「Gross margin was affected by higher costs, including increased overseas production costs resulting from the weaker yen in the cost-accounting exchange rate following a decline in forward bookings during periods of yen appreciation, and higher labor costs resulting from domestic labor shortages, although」

「Gross margin declined 0.8 percentage points year on year to 46.8% owing to higher costs, including increased overseas production costs resulting from the weaker yen in the cost-accounting exchange rate following a decline in forward bookings during periods of yen appreciation, higher costs caused by delays in ramping up overseas production transfers for new products, and higher labor costs resulting from domestic labor shortages.」

「In production, the sustained weakness of the yen and higher processing costs resulting from increased labor costs drove up costs, reducing the gross margin by 0.6 percentage points year on year to 46.9%.」

「In production, the difficult conditions of recent years, including rising labor and processing costs at production sites in Japan and overseas, have continued. During the cumulative third quarter, additional factors drove up costs, including higher processing costs as part of efforts to strengthen the domestic production system and the sharp depreciation of the yen against the dollar.」

「Gross margin has remained under difficult conditions, reflecting the multi-year trend of rising labor and processing costs at production sites in Japan and overseas. During the cumulative second quarter, additional factors drove up costs, including higher processing costs as part of efforts to strengthen the domestic production system and the sharp depreciation of the yen against the dollar.」

「Although costs rose owing to the sharp depreciation of the yen from November onward and higher processing costs resulting from increased labor costs」

「Although raw material prices and processing costs continued to rise and the weaker yen had eased somewhat, cost increases remained unchecked, and the Company implemented partial product price revisions from February.」

「Although increases in various raw material and processing costs continued」