Higher costs for raw materials, logistics and overseas labor

「利益面では、営業利益は販売減少や生産コストの上昇などにより前回予想 1,800 百万円に対し 1,100 百万円減の 700 百万円となる見込みです。」

「In the materials processing business, revenue increased to ¥10,343 million, up 6.3% year on year, driven by the metals business, where semiconductor demand increased, and the acoustics business, where soundproof-room sales were strong. However, operating profit fell to ¥756 million, down 12.0%, due to higher material prices and changes in the product mix.」

「素材加工事業は、半導体需要が増えた金属事業や、防音室の販売が好調な音響事業などの影響により、売上高は 10,343百万円（前期比 613百万円増）となった一方、材料価格の高騰及び商品構成の変動により、営業利益は 756百万円（前期比 102百万円減益）となりました。」

「In the musical instrument education business, the reaction to stay-at-home demand during the spread of COVID-19 and deterioration in consumer sentiment amid rising prices resulted in net sales of ¥58,379 million, down 11.1% year on year. The impact of production cuts to optimize inventory levels and higher material costs resulted in an operating loss of ¥701 million, compared with operating profit of ¥2,353 million in the same period of the previous year.」

「In the musical instrument education business, the reaction to stay-at-home demand during the spread of COVID-19 and deterioration in consumer sentiment amid rising prices resulted in net sales of ¥29,382 million, down 12.9% year on year. The impact of production cuts to optimize inventory levels and higher material costs resulted in an operating loss of ¥647 million, compared with operating profit of ¥1,451 million in the same period of the previous year.」

「In the musical instrument education business, domestic sales of grand pianos, including “Shigeru Kawai,” remained strong, as in the previous fiscal year. However, the slowdown in China’s economic activity, the easing of stay-at-home demand to some extent and deterioration in consumer sentiment amid rising prices resulted in net sales of ¥49,715 million, down 8.4% year on year. Operating profit was ¥2,114 million, down 21.3% year on year, due to higher material costs and other factors.」

「In the musical instrument education business, domestic sales of grand pianos, including “Shigeru Kawai,” remained strong, as in the previous fiscal year. However, the suspension of economic activity following a sharp increase in COVID-19 infections in China at the beginning of the year, the easing of stay-at-home demand to some extent and deterioration in consumer sentiment amid rising prices resulted in net sales of ¥33,731 million, down 4.5% year on year. Operating profit was ¥1,451 million, down 17.8% year on year, due to higher material costs and other factors.」

「In the musical instrument education business, domestic sales of grand pianos, including “Shigeru Kawai,” remained strong, as in the previous fiscal year. However, economic activity in China was suspended following a sharp increase in COVID-19 infections at the beginning of the year, stay-at-home demand eased to some extent, and consumer sentiment deteriorated amid rising prices. As a result, net sales were ¥16,444 million, down 6.0% year on year, while operating profit was ¥649 million, down 18.0% year on year, due to higher material costs and other factors.」

「In the musical instrument education business, sales of keyboard instruments, including “Shigeru Kawai,” remained strong worldwide, as in the previous fiscal year. In our music schools and physical education classes, we worked to recruit students and hold events while taking measures to prevent the spread of COVID-19. As a result, net sales were ¥54,297 million, up 5.5% year on year, while operating profit was ¥2,685 million, down 23.4% year on year, due to changes in foreign exchange conditions, higher ocean freight and material costs, and other factors.」

「Operating profit was ¥2,436 million, down 27.0% year on year, due to changes in foreign exchange conditions, higher ocean freight and material costs, and other factors.」

「As a result, net sales for the first quarter of the current consolidated fiscal year were ¥20,766 million, up 1.1% year on year, while operating profit was ¥1,147 million, down 31.1% year on year, due to foreign exchange effects, higher ocean freight and material costs, and other factors,」

「Various cost increases, including higher raw material costs, higher logistics costs due to surging crude oil prices and other factors, and higher labor costs due to rising overseas labor costs, may affect the group’s business performance.」