Price Fluctuations and Procurement Risks for Wood and Stainless Steel
First written in FY2016. 4 of 15 entries say "Worsened", first in FY2022-Q1. Latest entry: FY2026-H1.
Wood One 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 2021: 39 of 72 companies on the "Worse" side.
28 other companies' latest entry also says "Restated".
- FY2026-H1RestatedAnnual report
「In response to repeated increases in materials procurement costs, the company continues to pursue cost reductions through productivity improvements and supply chain reinforcement, as well as revisions to the selling prices of flooring materials, interior finishing materials, and other products to secure appropriate earnings.」
The Group has reconfirmed its recognition that material procurement costs continue to rise, and its response through cost reductions, supply chain strengthening and price revisions. - FY2024RestatedAnnual report
「Regarding shortages and soaring prices of timber and wood products resulting from the sharp tightening of timber supply and demand in Europe, the United States and China, the peak of supply-demand tightness has passed and timber prices are trending downward. However, various costs, including auxiliary materials, electricity and fuel, continue to rise or remain persistently high.」
While timber prices and tight supply and demand have eased somewhat, the Group has reconfirmed that auxiliary material, electricity and fuel costs remain persistently high. - FY2024-Q3RestatedAnnual report
「Regarding shortages and soaring prices of timber and wood products resulting from the sharp tightening of timber supply and demand in Europe, the United States and China, the peak of supply-demand tightness has passed and timber prices are trending downward. However, various costs, including auxiliary materials, electricity and fuel, continue to rise or remain persistently high.」
While tight timber supply and demand and timber prices continue to ease somewhat, the Group has reconfirmed that auxiliary material, electricity and fuel costs remain persistently high. - FY2024-Q1MitigatedAnnual report
「Regarding shortages and soaring prices of timber and wood products resulting from the sharp tightening of timber supply and demand in Europe, the United States and China, the peak of supply-demand tightness has passed and timber prices are trending downward. However, various costs, including auxiliary materials, electricity, fuel and logistics freight, continue to rise or remain persistently high.」
As the peak of tight timber supply and demand has passed and timber prices are trending downward, some easing has been seen in the price risk of timber itself. Meanwhile, auxiliary material, energy and logistics costs remain persistently high. - FY2023MitigatedAnnual report
「Regarding shortages and soaring prices of timber and wood products resulting from the sharp tightening of timber supply and demand in Europe, the United States and China, the peak of supply-demand tightness has passed and timber prices are trending downward. However, various costs, including auxiliary materials, electricity, fuel and logistics freight, continue to rise or remain persistently high.」
The peak of tight timber supply and demand and timber prices has passed, with prices trending downward, while increases in auxiliary material, electricity, fuel and logistics costs remain. - FY2023-Q3MitigatedAnnual report
「Regarding shortages and soaring prices of timber and wood products resulting from the sharp tightening of timber supply and demand in Europe, the United States and China, the peak of supply-demand tightness has passed compared with before the COVID-19 pandemic and timber prices are trending downward. However, various costs, including auxiliary materials, electricity, fuel and logistics freight, continue to rise.」
The peak of the wood shock’s tightening of timber supply and demand has passed and timber prices have begun to trend downward. Meanwhile, auxiliary material, electricity, fuel and logistics costs continue to rise. - FY2023-Q2MitigatedAnnual report
「Regarding shortages and soaring prices of timber and wood products resulting from the recovery from the COVID-19 pandemic and Russia’s invasion of Ukraine, the peak of supply-demand tightness appears to have passed, but timber prices remain persistently high compared with before the pandemic.」
The peak of tight timber supply and demand is said to be passing, indicating some easing of the supply shortage risk. Meanwhile, timber prices remain persistently high compared with before the pandemic. - FY2023-Q1WorsenedAnnual report
「In addition, shortages and soaring prices of timber and wood products stemming from Russia’s invasion of Ukraine, the so-called “return of the wood shock,” have caused some businesses to experience shortages of construction materials and delivery delays. Delays in domestic construction starts and project schedules have become pronounced, leaving the outlook uncertain.」
As the “return of the wood shock,” shortages and soaring prices of timber and wood products have intensified, with shortages of construction materials, delivery delays, and delays in construction starts and project schedules becoming apparent. - FY2022WorsenedAnnual report
「However, gross profit margin declined 1.6 percentage points year on year due to the rapid depreciation of the yen from the second half of the fiscal year, soaring raw material and auxiliary material prices, and persistently high ocean freight rates.」
The weaker yen, soaring raw material and auxiliary material prices, and persistently high ocean freight rates emerged in performance as a 1.6-percentage-point decline in gross profit margin. - FY2022-Q3WorsenedAnnual report
「To address the recent surge in raw material prices and freight rates, we have pursued cost reductions through productivity improvements and strengthened the supply chain. However, due to the sharp expansion in raw material shortages since early autumn, disruptions to maritime transport and a further increase in material procurement costs, we have been forced to restrict orders for some wood products and raise selling prices for flooring, architectural woodwork and other products.」
Worsening raw material shortages, disruptions to maritime transport and higher procurement costs led to restrictions on orders for some wood products and price increases for flooring, architectural woodwork and other products. - FY2022-Q2RestatedAnnual report
「In addition, shortages and soaring prices of timber and wood products caused by expanding housing demand in the United States and strong timber demand in China, the so-called “wood shock,” have begun to manifest in delays to domestic construction starts and higher material prices, raising concerns that they may affect the Group’s performance going forward.」
The Group continues to recognise the risk that the wood shock’s shortages and soaring prices of timber and wood products, as well as delays in domestic construction starts, may affect performance. - FY2022-Q1WorsenedAnnual report
「Shortages and soaring prices of timber and wood products caused by expanding housing demand in the United States and strong timber demand in China, the so-called “wood shock,” have gradually begun to manifest in delays to domestic construction starts and soaring material prices, raising concerns that they may affect the performance of the Group going forward.」
Shortages and soaring prices of timber and wood products have materialised as the “wood shock,” spreading to delays in domestic construction starts and higher material prices. - FY2020-Q1MaterialisedAnnual report
「These promotional activities increased revenue in the residential building materials and equipment business year on year, although soaring unit prices for imported materials and other factors had a negative impact. However, net income increased, partly due to the effects of the overseas business restructuring carried out last fiscal year.」
Soaring unit prices for imported materials were specifically identified as a negative factor affecting the performance of the residential building materials and equipment business. - FY2019MaterialisedAnnual report
「Overseas operations also posted difficult earnings as the operating rates of overseas subsidiary plants declined due to overseas business restructuring, while various expenses increased, including raw material and electricity costs.」
Higher raw material costs were specifically identified as a factor behind deteriorating earnings at overseas subsidiaries, indicating that raw material price risk has materialised. - FY2016First statedAnnual report
「To mitigate procurement and price volatility risks for timber used in housing building materials, Juken New Zealand Ltd., our subsidiary in New Zealand, operates forestry businesses. However, if timber prices fluctuate due to market conditions and other factors, including changes in international timber prices, this may affect the performance of the housing building materials business. In addition, significant fluctuations in international market prices for the stainless steel used in housing equipment may affect performance.」
International timber prices and procurement, and stainless steel prices for residential equipment, are cited as raw material risks.