Deteriorating Business Environment in the Transportation Industry Due to Soaring Energy Prices
First written in FY2023-Q2. 3 of 5 entries say "Worsened", first in FY2023. Latest entry: FY2026.
Sotetsu Holdings moved to the "Worse" side of this theme in 2026.
0 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The environment surrounding the Sotetsu Group is becoming increasingly challenging due to the declining birthrate and aging population, labor shortages, increases in various costs resulting from higher construction and commodity prices, rising interest rates, and an uncertain social environment, among other factors.」
Rising interest rates were also explicitly identified in addition to soaring energy and raw-material prices, broadening the factors driving cost increases. - FY2024RestatedAnnual report
「The environment surrounding the Sotetsu Group is becoming increasingly challenging due to the declining birthrate and aging population, market maturity and intensifying competition, as well as lifestyle changes resulting from COVID-19, rising energy prices and soaring raw-material prices.」
Rising energy prices and soaring raw-material prices were reiterated as factors contributing to the challenging business environment, together with the declining birthrate and aging population and post-pandemic changes. - FY2024-Q1WorsenedAnnual report
「In the railway business, revenue increased with the full opening of the Sotetsu Shin-Yokohama Line in March 2023 and the start of collecting railway station barrier-free fees, but the business environment remained challenging due to the entrenchment of the "new lifestyle" and prolonged soaring energy prices.」
The company stated that soaring energy prices were prolonged rather than a short-term factor, and their impact on the challenging business environment in the transportation business continued. - FY2023WorsenedAnnual report
「Changes in the economic and social structure resulting from COVID-19, recent soaring energy prices, and increases in the prices of various raw materials stemming from international conditions are having a significant impact on the performance of the Sotetsu Group, particularly in its transportation, hotel and retail businesses.」
In addition to soaring energy prices, increases in the prices of various raw materials stemming from international conditions were clarified as external risks affecting group performance. - FY2023-Q2First statedAnnual report
「In the railway business, although passenger numbers were recovering, the business environment remained challenging due to the impact of requests to refrain from going out and the spread of telework among companies following the COVID-19 pandemic, as well as soaring energy prices.」
While the Business and Other Risks section stated that there were no new risks, the analysis of operating results for the transportation business explicitly identified soaring energy prices for the first time as a factor affecting the challenging business environment in the railway business.