Volatility in Timber Prices and Import Costs
First written in FY2016. 10 of 15 entries say "Materialised", first in FY2019-Q1. Latest entry: FY2023.
R.C.Core moved to the "Worse" side of this theme in 2018, 3 years before the typical company in this theme (2021).
The whole theme swung hardest in 2018: 7 of 9 companies on the "Worse" side.
6 other companies' latest entry also says "Mitigated".
- FY2023MitigatedAnnual report
「Although the wood shock appears to be moving toward resolution, the company will continue to focus on cost reductions and work to improve its earnings structure.」
Although the increase in timber prices and procurement costs caused by the wood shock continues, the company indicates that conditions are moving toward resolution and is working to mitigate the impact through cost reductions. - FY2023-Q2MaterialisedAnnual report
「Sales and profit both declined due to lower royalty income accompanying the decline in orders and lower profitability on properties in the order backlog caused by higher material prices.」
Higher material prices actually resulted in lower profitability on properties in the order backlog and became a factor behind the decline in sales and profit. - FY2023-Q1MaterialisedAnnual report
「Meanwhile, the surge in material prices caused by the wood shock, which has been putting pressure on the company’s earnings since the previous fiscal year,」
The company states that the surge in material prices caused by the wood shock has continued to put pressure on earnings since the previous fiscal year. - FY2022-Q2MaterialisedAnnual report
「At the same time, for the company, whose principal business is log houses, the wood shock, consisting of timber supply shortages and higher market prices stemming from increased demand for timber in Europe, the United States and China, is a factor that puts pressure on earnings」
The wood shock, involving timber supply shortages and higher market prices, continues to be cited as an actual business factor putting pressure on earnings. - FY2022-Q1MaterialisedAnnual report
「At the same time, the impact of the wood shock is beginning to emerge, including higher procurement costs and delays in material deliveries and project completions, and the situation remains unpredictable.」
Higher procurement costs due to the wood shock and delays in material deliveries and project completions began to emerge as actual impacts on the business. - FY2021MaterialisedAnnual report
「Difficulty procuring timber and a sharp increase in material prices, known as the wood shock, have occurred due in part to major changes in the global supply-demand balance during the COVID-19 pandemic」
The company stated that difficulty procuring timber and a sharp increase in material prices actually occurred as the wood shock. - FY2020MitigatedAnnual report
「As initiatives for the current fiscal year, the company will first bring to an end the delivery delays stemming from difficulties procuring Canadian timber, an issue carried over from the previous fiscal year,」
The company worked to resolve the difficulties procuring Canadian timber and the resulting delivery delays that continued from the previous fiscal year, and states that their impact on results was gradually reduced. - FY2020-Q3MitigatedAnnual report
「Through the first quarter, results were affected by delivery delays stemming from difficulties procuring Canadian timber, an issue carried over from the previous fiscal year, and the burden of front-loaded expenses and other costs at 6 locations taken over by BP from sales companies that had fallen into financial difficulty due to businesses other than BESS. In the consolidated third quarter, as in the consolidated second quarter, the company worked to restore performance, including returning to profitability on a substantial year-on-year increase in revenue.」
The company identifies the impact of difficulties procuring Canadian timber and the resulting delivery delays as factors behind losses through the first quarter, and states that the consolidated third quarter returned to profitability. It does not assert that the procurement risk itself has been resolved, but indicates that its impact on results has diminished. - FY2020-Q2MaterialisedAnnual report
「In terms of profit, the main factors were delivery delays stemming from difficulties procuring Canadian timber, an issue carried over from the previous fiscal year, and the front-loaded operating expenses of 6 locations taken over by BP from sales companies that had fallen into financial difficulty due to businesses other than BESS. As a result, the consolidated operating loss was ¥212 million, compared with a loss of ¥350 million in the same period of the previous year,」
Delivery delays caused by difficulties procuring Canadian timber continued to be an issue in the quarter and were cited as a factor behind the operating loss. - FY2019MaterialisedAnnual report
「Consolidated net sales for the current fiscal year were ¥12.397 billion, down 8.0% year on year, due to the tendency toward longer construction periods and delays in the delivery of Canadian timber materials caused by the wildfires in Canada two years ago and other factors.」
Delivery delays for Canadian timber and longer construction periods actually occurred as factors behind the full-year decline in revenue. The company also disclosed measures including switching to domestic timber and launching new products. - FY2019-Q3MaterialisedAnnual report
「The company sincerely apologizes for the considerable inconvenience caused to customers and other stakeholders, including delivery delays, as it became difficult to secure in Canada the large-diameter, high-quality timber required for BESS Country Log Houses due to the sharp decline in log supply stemming from natural disasters in Canada two years ago, including wildfires and floods, and strong demand for timber in the United States and China.」
Difficulty securing large-diameter, high-quality timber and delivery delays arising from natural disasters and overseas demand also actually occurred in the third quarter. The company has also been informing customers about the option of switching to domestic timber. - FY2019-Q2MaterialisedAnnual report
「Due to the sharp decline in log supply stemming from natural disasters in Canada last year, including wildfires and floods, and the strong demand for timber in the United States and China, it has become difficult to secure the large-diameter, high-quality timber required for BESS Country Log Houses. This has caused considerable inconvenience to customers and other stakeholders, including delivery delays, for which the company sincerely apologizes.」
Difficulty securing large-diameter, high-quality timber and delivery delays continued into the second quarter. The company is working to secure materials, strengthen its production system and switch to domestic timber. - FY2019-Q1MaterialisedAnnual report
「Due to the sharp decline in log supply stemming from natural disasters in Canada last year, including wildfires and floods, and the strong demand for timber in the United States and China, it has become difficult to secure the large-diameter, high-quality timber required for BESS Country Log Houses. This has caused considerable inconvenience to customers and other stakeholders, including delivery delays, for which the company sincerely apologizes.」
The company states that securing large-diameter, high-quality timber for Country Log Houses became difficult against the backdrop of natural disasters and overseas demand, and that delivery delays actually occurred. - FY2018RestatedAnnual report
「Timber, the Group’s principal raw material, is a natural resource, and it is unavoidable that fluctuations in market prices will affect the Group’s purchase prices.」
The company has reconfirmed the risk to raw material and import costs from fluctuations in timber prices, crude oil prices, container supply and demand, and other factors. - FY2016First statedAnnual report
「Timber, the company’s principal raw material, is a natural resource, and it is unavoidable that fluctuations in market prices will affect the Group’s purchase prices.」
The company recognizes fluctuations in timber prices, crude oil prices and container supply and demand as risks.