Raw material price increases and procurement and selling price revisions

「Procurement prices and manufacturing costs for important automotive products such as the Group's aluminum wheels may rise further due to soaring material prices.」

「海外においても、米国政策の動向や地政学的リスクの長期化が国際経済の不透明感を一段と高め、加えて円安の進行による輸入コストの増加が企業活動の重石となりました。」

「However, private consumption remains sluggish in some areas due to rising prices, while uncertainty over the outlook for U.S. trade policy is affecting the domestic economy as a whole. In addition, higher import costs due to the weaker yen are putting pressure on corporate activity.」

「Segment profit was ¥1,524 million, an increase of ¥146 million, or 10.6%, from the previous fiscal year, due to higher sales and the partial pass-through to selling prices of higher procurement prices resulting from the weaker yen and other factors.」

「Profit was ¥247 million, an increase of ¥112 million, or 83.8%, year on year, due to higher sales and the partial pass-through to selling prices of higher procurement prices resulting from the weaker yen and other factors.」

「Revenue from the automotive-related wholesale business was ¥20,224 million, a decrease of ¥1,632 million, or 7.5%, year on year. This was due to lower sales of the core aluminum wheels and automotive products. Segment profit also decreased by ¥450 million, or 26.0%, year on year to ¥1,283 million, as well as the decline in sales, due to higher procurement costs resulting from the continued depreciation of the yen and other factors.」

「Revenue from the automotive-related wholesale business was ¥9,727 million, a decrease of ¥1,184 million, or 10.9%, year on year. This was due to lower sales of the core aluminum wheels and automotive products. Segment profit also decreased by ¥352 million, or 72.4%, year on year to ¥134 million, as well as the decline in sales, due to higher procurement costs resulting from the continued depreciation of the yen and other factors.」

「Meanwhile, whether negotiations with customers on selling prices proceed smoothly often depends on market conditions, and this may adversely affect the Group's consolidated results and consolidated financial position.」

「Revenue from automotive-related wholesale was ¥4,578 million, up ¥3 million year on year (0.1%). This was because higher sales of the core aluminum wheels offset lower sales of automotive products and other items. Segment profit was ¥123 million, down ¥29 million year on year (19.5%), owing to higher procurement costs resulting from rising raw material prices, the weaker yen and other factors.」

「Meanwhile, segment profit was ¥1,033 million, down ¥197 million from the previous fiscal year, or 16.1%, due to higher procurement costs resulting from rising raw material prices, the weaker yen and other factors.」

「Meanwhile, operating profit was ¥1,257 million, down 9.3% year on year, due to higher procurement costs resulting from rising raw material prices and other factors. Ordinary profit was ¥1,263 million, down 11.9%, and profit attributable to owners of the parent was ¥768 million, down 15.9%.」

「Procurement prices and manufacturing costs for important automotive products such as the Group's aluminum wheels may rise further due to soaring material prices. In some cases it may be difficult to procure products unless we accept price increases, so for substantial price increases we have no choice but to proceed with contracts on the assumption that customers will be asked to revise their selling prices.」

「Revenue from automotive-related wholesale was ¥19,808 million, up ¥329 million year on year (1.7%). This was due to higher revenue from steel wheels, automotive products and other items, despite lower sales of the core aluminum wheels. Segment profit was ¥1,241 million, down ¥248 million year on year (16.7%), affected by customers' preference for lower prices and higher procurement costs resulting from surging raw material prices.」

「Meanwhile, operating profit was ¥351 million, down 31.5% year on year, due to sluggish sales particularly of premium and mid-range core aluminum wheel products, as well as higher costs resulting from price increases for raw materials and other inputs. Ordinary profit was ¥433 million, down 25.5%, and profit attributable to owners of the parent was ¥235 million, down 37.9%.」

「Meanwhile, operating profit decreased by ¥124 million to ¥129 million, a 49.1% decline year on year, as premium and mid-grade products among the core aluminum wheels struggled to gain traction, compounded by the impact of higher costs resulting from price increases for raw materials and other items.」

「Procurement prices and manufacturing costs may rise further due to soaring material prices. We are making persistent efforts to negotiate prices with manufacturers in a relationship of mutual trust and reduce procurement costs, but in some cases it may be difficult to procure products unless we accept price increases. Accordingly, for substantial price increases, we have no choice but to proceed with contracts on the assumption that customers will be asked to revise their selling prices.」

「Procurement prices and manufacturing costs for automotive products such as aluminum wheels may rise further due to soaring material prices. We are making persistent efforts to negotiate prices with manufacturers in a relationship of mutual trust and reduce procurement costs, but in some cases it may be difficult to procure products unless we accept price increases. Accordingly, for substantial price increases, we have no choice but to proceed with contracts on the assumption that customers will be asked to revise their selling prices.」