Risk of Higher Crude Oil Prices and Inability to Pass on Higher Raw Material Costs
First written in FY2016. 9 of 22 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2022: 121 of 167 companies on the "Worse" side.
- FY2026RestatedAnnual report
「In response, the Group is working to pass cost increases on to selling prices and reduce manufacturing costs promptly, while promoting multiple-source procurement by diversifying production regions and suppliers, including overseas sources.」
The Group continues to respond to the risk of rising crude oil and raw material prices by passing increases on to selling prices, reducing manufacturing costs and diversifying production regions and suppliers. - FY2025RestatedAnnual report
「In response, the Group is working to pass cost increases on to selling prices and reduce manufacturing costs promptly, while promoting multiple-source procurement by diversifying production regions and suppliers, including overseas sources.」
The Group has reconfirmed its response to the risk of rising raw material prices: passing increases on to selling prices, reducing manufacturing costs and diversifying production regions and suppliers. - FY2024-Q2RestatedAnnual report
「In the Company’s public-works business, deliveries of embankment reinforcement materials were delayed for some projects, while sales of materials for repairing and reinforcing concrete structures, river revetment materials and marine civil-engineering products remained firm. In terms of profit, performance remained strong as manufacturing costs were reduced and the pass-through of higher raw material prices to selling prices gradually progressed.」
Although the impact of surging raw material prices remains, manufacturing cost reductions and price pass-through have progressed, and profit in the public-works business has remained strong. - FY2023-Q4MitigatedAnnual report
「In terms of profit, performance progressed steadily against plan as the pass-through of higher raw material prices to selling prices gradually progressed and manufacturing costs were reduced.」
In response to surging raw material prices, price pass-through and manufacturing cost reductions progressed, and profit in the public-works business progressed steadily against plan. - FY2023-Q2MitigatedAnnual report
「In terms of profit, performance remained strong as the pass-through of higher raw material prices to selling prices gradually progressed and manufacturing costs were reduced.」
In response to surging raw material prices, price pass-through and manufacturing cost reductions progressed, improving profit in the public-works business. Although the Vietnam subsidiary was also affected by surging raw material prices, revenue and profit progressed steadily against plan as the product range was expanded. - FY2023-Q1RestatedAnnual report
「In terms of profit, gross margin improved as the pass-through of higher raw material prices to selling prices gradually progressed. At the overseas subsidiary MAEDA KOSEN VIETNAM CO., LTD., surging raw material prices were a factor weighing on profit.」
In the domestic public-works business, gross margin improved as price pass-through gradually progressed, while at the Vietnam subsidiary, surging raw material prices continued to weigh on profit. - FY2022-Q4Price Pass-Through Progresses While Overseas Profit Remains Under PressureAnnual report
「In terms of profit, gross margin improved as the pass-through of persistently high raw material prices to selling prices progressed. At the overseas subsidiary MAEDA KOSEN VIETNAM CO., LTD., surging raw material prices were a factor weighing on profit.」
In the domestic public-works business, gross margin improved as the pass-through to selling prices progressed, while at the Vietnam subsidiary, surging raw material prices continued to weigh on profit, producing different effects across the businesses. - FY2022-Q2WorsenedAnnual report
「Operating profit fell below the year-earlier level because rising raw material prices reduced the gross margin. At the overseas subsidiary MAEDA KOSEN VIETNAM CO., LTD., surging raw material prices were a factor weighing on profit.」
Surging raw material prices actually reduced the gross margin in the domestic public-works business and profit at the Vietnam subsidiary, indicating that the impact of higher costs has expanded. - FY2022-Q1MaterialisedAnnual report
「In the Company’s public-works business, sales of slope-disaster-prevention products and landscaping materials remained sluggish, but sales of repair and reinforcement materials for concrete structures and river revetment materials remained strong, resulting in sales above the year-earlier level. Operating profit fell below the year-earlier level because of surging raw material prices and the impact of certain low-gross-margin projects.」
Surging raw material prices, together with low-gross-margin projects, actually weighed on operating profit. - FY2020MitigatedAnnual report
「In response, the Group is working to pass cost increases on to selling prices and reduce manufacturing costs promptly, while promoting multiple-source procurement by diversifying production regions and suppliers, including overseas sources.」
The Group explicitly identifies passing on price increases, reducing manufacturing costs and procuring from multiple suppliers through diversification of production regions and suppliers as measures to address rising crude oil and raw material prices. - FY2020-Q3RestatedAnnual report
「Operating profit significantly exceeded the year-earlier level, owing to higher profit accompanying increased revenue, as well as cost reductions and the pass-through of increases in freight and other costs to selling prices.」
The Company has reconfirmed that it is addressing the pressure on profit from rising costs by reducing costs and passing increases in freight and other costs on to selling prices. - FY2020-Q2MitigatedAnnual report
「Operating profit exceeded the year-earlier level as a result of cost reductions and passing increases in freight and other costs on to selling prices.」
The Company addressed the pressure on profit from rising costs by reducing costs and passing increases in freight and other costs on to selling prices. - FY2019-Q3RestatedAnnual report
「At the overseas subsidiary MAEDA KOSEN VIETNAM CO., LTD., both revenue and profit increased as the range of products handled was expanded. However, gross margin fell below the year-earlier level because of surging raw material prices and lower utilisation following the start of production of new products.」
Surging raw material prices continue to be cited as an actual factor weighing on margins. - FY2019-Q2WorsenedAnnual report
「At subsidiary 未来コーセン株式会社, contract products for apparel struggled and the pass-through of some manufacturing cost increases was delayed, but in-house sales in the wiping-cloth business for manufacturing precision equipment remained strong, and the contract manufacturing business also remained firm, resulting in sales exceeding the year-earlier period. However, operating profit fell below the year-earlier period due to higher electricity and freight costs, as well as increased depreciation expense from the installation of additional false-twist machines and construction of a new factory building at the company's Kanazawa plant.」
In addition to delays in passing higher raw material and manufacturing costs on to selling prices, increases in electricity and freight costs have been reported, and cost pressures continue to weigh on profit. - FY2019-Q1RestatedAnnual report
「At the subsidiary 未来コーセン株式会社, the pass-through of part of the increase in manufacturing costs was delayed, although」
Delays in passing higher manufacturing costs on to selling prices continue to occur. - FY2018-Q3RestatedAnnual report
「At the subsidiary 未来コーセン株式会社, the pass-through of part of the increase in raw material costs was delayed, although」
Delays in passing higher raw material costs on to selling prices continue to be reported. - FY2018-Q2MaterialisedAnnual report
「At the subsidiary 未来コーセン株式会社, the pass-through of part of the increase in raw material costs was delayed, although」
The Company states that delays in passing higher raw material costs on to selling prices actually occurred in its business. - FY2018-Q1WorsenedAnnual report
「Although labour shortages resulting from improving employment conditions and rising raw material prices and transport costs are concerns, the economy remains on a moderate recovery trend, with capital expenditure showing signs of recovery as corporate earnings improve.」
In addition to the previously identified risk of rising raw material prices, rising transport costs are also cited as a concern. - FY2017RestatedAnnual report
「If rising crude oil prices, the main component of these raw materials, cause raw material prices to surge and the increase cannot be passed on to selling prices, the Group’s performance could be affected.」
The Group has reconfirmed the risk that rising crude oil prices could increase raw material costs and that the increase may not be passed on to selling prices. - FY2016First statedAnnual report
「If rising crude oil prices, the main component of these raw materials, cause raw material prices to surge and the increase cannot be passed on to selling prices, the Group’s performance could be affected.」
The Group identifies rising crude oil prices, a primary component of synthetic resins and synthetic fibres, and the inability to pass the increase on to selling prices as performance risks.