Deterioration in Corporate Earnings and Terms of Trade Due to Domestic and Overseas Economic Slowdowns and Exchange Rate Fluctuations
First written in FY2017-Q2. 11 of 32 entries say "Worsened", first in FY2019-Q2. Latest entry: 2026-10-08.
Eiwa moved to the "Worse" side of this theme in 2019, the same year as the typical company in this theme.
The whole theme swung hardest in 2020: 139 of 156 companies on the "Worse" side.
53 other companies' latest entry also says "Restated".
- FY2026-H1RestatedAnnual report
「Meanwhile, uncertainty remained amid persistently high raw material and energy prices, the prolonged geopolitical risks and heightened tensions in global affairs, including U.S. trade policy, and the worsening labor shortage.」
The disclosure continues to cite uncertainty from persistently high raw material and energy prices, geopolitical risks, U.S. trade policy, and labor shortages. - FY2025U.S. trade policy and other factors explicitly identified as matters of concernAnnual report
「Meanwhile, uncertainty persisted amid concerns that U.S. trade policy, expanding geopolitical risks, global inflation, and developments in financial and capital markets could exert downward pressure on the global and Japanese economies.」
In addition to the previous concerns about geopolitical risks, inflation, and financial markets, the disclosure explicitly identifies U.S. trade policy as a factor exerting downward pressure on the economy. - FY2025-H1Natural disasters, exchange rates, and share-price fluctuations added as factors of concernAnnual report
「During the interim consolidated accounting period (1 April 2024 to 30 September 2024), Japan's economy showed signs of a gradual recovery, supported by a recovery in personal consumption resulting from improvements in employment and income conditions and stronger inbound demand. However, uncertainty persisted amid concerns about the impact on the economy of prolonged geopolitical risks, soaring raw material and energy prices, natural disasters such as earthquakes and torrential rain, unstable exchange rates, and sharp fluctuations in share prices.」
While identifying personal consumption and inbound demand as recovery factors, the disclosure cites geopolitical risks, soaring raw material and energy prices, earthquakes and torrential rain, unstable exchange rates, and sharp share-price fluctuations as factors of concern for the economy. - FY2024-Q3RestatedAnnual report
「During the consolidated cumulative third quarter under review (1 April 2023 to 31 December 2023), Japan's economy maintained a gradual recovery trend as corporate earnings and employment conditions improved. However, the risk of an economic slowdown due to global geopolitical risks and monetary tightening associated with inflation remains high, and the operating environment remains uncertain in Japan, where the depreciation of the yen and persistently high raw material prices are also matters of concern.」
The disclosure continues to cite the coexistence of a gradual domestic recovery and concerns about an economic downturn due to geopolitical risks, inflation and monetary tightening, the depreciation of the yen, and persistently high raw material prices. - FY2024-Q2Domestic recovery coexists with global inflation and monetary-tightening risksAnnual report
「During the consolidated cumulative second quarter under review (1 April 2023 to 30 September 2023), Japan's economy maintained a gradual recovery trend as social and economic activity continued to normalize following the COVID-19 pandemic, with domestic demand serving as the main driver. However, uncertainty persisted as countries continued monetary-tightening policies in response to global inflationary pressures, requiring close attention to the impact on the economy of price trends, developments in international financial and capital markets, and geopolitical risks.」
While describing normalization following the COVID-19 pandemic and a recovery led by domestic demand, the disclosure continues to highlight risks from global inflation, monetary tightening in each country, financial markets, and geopolitical developments. - FY2024-Q1WorsenedAnnual report
「Meanwhile, the risk of an economic slowdown caused by global geopolitical risks and inflation remains high, while in the domestic market there are concerns about adverse effects on the economy from rising prices driven by persistently high raw material prices and the depreciation of the yen.」
In addition to the previously cited risks from international conditions and an economic slowdown, the disclosure identifies inflation, persistently high raw material prices, and rising prices driven by the depreciation of the yen as factors causing adverse effects. - FY2023-Q3WorsenedAnnual report
「During the consolidated cumulative third quarter under review (1 April 2022 to 31 December 2022), Japan's economy showed signs of a gradual recovery as economic activity began to pick up, supported by the easing of restrictions on movement and other factors, despite the continued impact of the COVID-19 pandemic. However, uncertainty persisted amid unstable conditions in Japan and overseas, including higher resource prices resulting from the prolonged deterioration of the situation in Ukraine and sharp exchange-rate fluctuations caused by monetary tightening to curb inflation in major countries.」
While noting recovery factors from the easing of restrictions on movement, the disclosure identifies the prolonged and worsening situation in Ukraine, higher resource prices, and sharp exchange-rate fluctuations associated with monetary tightening as new sources of instability. - FY2023-Q2RestatedAnnual report
「During the consolidated cumulative second quarter under review (1 April 2022 to 30 September 2022), Japan's economy showed a gradual recovery as countries worldwide shifted toward living with COVID-19, even as the impact of the COVID-19 pandemic continued. However, uncertainty persisted due to the impact on economic activity of rising prices driven by higher energy and raw material costs amid the prolonged situation in Ukraine, as well as the risk of an economic downturn resulting from the rapid depreciation of the yen.」
While noting recovery factors associated with living with COVID-19, the disclosure continues to cite the situation in Ukraine, soaring energy and raw material prices, inflation, and the risk of an economic downturn due to the rapid depreciation of the yen. - FY2023-Q1WorsenedAnnual report
「During the cumulative first quarter under review (from 1 April 2022 to 30 June 2022), Japan’s economy remained uncertain. Although efforts were made to balance infection control with economic activity amid the continuing impact of COVID-19, the prolonged Russian invasion of Ukraine brought together factors pushing up prices, including higher crude oil and other resource prices, rising raw material prices and a sharp depreciation of the yen.」
In addition to the impact of COVID-19, the company cites the prolonged invasion of Ukraine, rising resource and raw material prices, and the yen’s sharp depreciation as new factors of deterioration, with uncertainty about the outlook continuing. - FY2022WorsenedAnnual report
「However, the situation remained unpredictable, with the renewed spread of infections, together with Russia’s invasion of Ukraine, causing a sharp rise in international commodity markets, including crude oil, and turmoil in financial and capital markets.」
In addition to the renewed spread of infections, the company identifies the sharp rise in international commodity prices and turmoil in the financial and capital markets stemming from the invasion of Ukraine as new factors of deterioration. - FY2022-Q3Recovery factors alongside concerns about the renewed spread of variantsAnnual report
「Although the outlook for containing COVID-19 remained uncertain, the rising vaccination rate and lifting of the state of emergency eased restrictions on movement and behavior, and signs of an economic recovery emerged. However, concerns remained about the renewed spread of infections due to the emergence of new variants, and the uncertain outlook continued.」
While the spread of vaccines and easing of restrictions supported an economic recovery, concerns about the renewed spread of infections due to new variants and uncertainty about the outlook continued. - FY2022-Q2WorsenedAnnual report
「Although vaccination progressed, particularly in developed countries, and the global economy showed signs of a moderate recovery, the uncertain outlook continued. The impact of the renewed spread of infections on economic activity and developments in international affairs also needed to be closely monitored.」
While the spread of vaccines provided a recovery factor, the impact of renewed infections and international conditions on economic activity remained, and uncertainty about the outlook continued. - FY2022-Q1WorsenedAnnual report
「The impact of rising raw material prices is becoming increasingly apparent.」
In addition to the existing economic, foreign-exchange and trade issues, the company states that the impact of rising raw material prices is beginning to emerge in practice. - FY2021Recovery factors alongside continued uncertaintyAnnual report
「In the petrochemical, steel and other industries that are our group’s principal customer industries, demand declined amid the COVID-19 pandemic, but the production activities of related companies continued on a recovery trend as automobile demand recovered and semiconductor demand surged.」
While demand continued to decline amid the COVID-19 pandemic, the company states that the production activities of related companies moved onto a recovery trend against a backdrop of recovering automobile demand and a sharp increase in semiconductor demand. - FY2021-Q3Recovery signs alongside renewed spread of infectionsAnnual report
「While the gradual resumption of economic activity was accompanied by signs of improvement, including a gradual recovery in production and personal consumption, the spread of infections intensified again, and the uncertain outlook continued.」
While the resumption of economic activity and recovery in production and personal consumption are identified as easing factors, the renewed spread of infections and uncertainty about the outlook continue. - FY2021-Q2WorsenedAnnual report
「During the cumulative second quarter under review (from 1 April 2020 to 30 September 2020), corporate earnings continued to decline sharply in Japan due to the worldwide spread of COVID-19, while employment conditions and capital investment remained weak. After the state of emergency was lifted, economic activity was gradually restored, and exports, imports and production, which had fallen sharply, began to show signs of bottoming out. Although some recovery in the economy was expected, the uncertain outlook continued because the U.S.-China trade dispute was prolonged and the timing of the end of the COVID-19 pandemic remained unforeseeable.」
The company describes a sharp decline in corporate earnings, weakness in employment and capital investment, and the inability to foresee when the pandemic will end, indicating increasing economic slowdown and uncertainty about the outlook. - FY2021-Q1MaterialisedAnnual report
「During the cumulative first quarter under review (from 1 April 2020 to 30 June 2020), Japan’s economy deteriorated sharply due to the worldwide spread of COVID-19. A state of emergency was declared in Japan, and economic activity stagnated and personal consumption fell sharply as a result of requests to refrain from nonessential outings. Even after the state of emergency was lifted, concerns remained about a second wave, and the uncertain outlook continued.」
The company states that COVID-19 actually caused economic activity to stagnate, personal consumption to decline and the economy to deteriorate sharply. - FY2020WorsenedAnnual report
「The uncertain outlook continued, with concerns including a sharp slowdown in the domestic and global economies due to the worldwide spread of COVID-19.」
In addition to the existing trade issues, sluggish exports and natural disasters, the company cites concerns about a sharp slowdown in the domestic and global economies due to COVID-19. - FY2020-Q3Greater specificity and replacement of factors of concernAnnual report
「The prolonged U.S.-China trade dispute and geopolitical risks in the increasingly tense Middle East remain matters of concern, and the uncertain outlook continues.」
In addition to the prolonged U.S.-China trade dispute, the company identifies geopolitical risks in the increasingly tense Middle East as a specific factor of concern in place of the United Kingdom’s withdrawal from the EU. - FY2020-Q2WorsenedAnnual report
「The outlook remains uncertain, including the risk that uncertainty in overseas economies, such as the prolonged U.S.-China trade dispute and the United Kingdom’s withdrawal from the EU, will weigh on the domestic economy.」
In addition to the prolonged U.S.-China trade dispute, the company specifies the United Kingdom’s withdrawal from the EU as a source of uncertainty in overseas economies, and continues to cite the risk of downward pressure on the domestic economy and the lack of visibility into the outlook. - FY2020-Q1WorsenedAnnual report
「During the cumulative first quarter under review (from 1 April 2019 to 30 June 2019), Japan’s economy remained uncertain. Although employment and income conditions continued to improve, some weakening was seen in the corporate earnings that had driven the economy, and global economic conditions were also affected by developments in trade issues and heightened geopolitical risks.」
In addition to the previously cited concerns about unstable political developments overseas and geopolitical risks, the company explicitly mentions some weakening in corporate earnings and the impact of trade issues, reinforcing the lack of visibility into the outlook. - FY2019-Q3RestatedAnnual report
「During the cumulative third quarter under review (from 1 April 2018 to 31 December 2018), Japan’s economy remained on a moderate recovery trend. Although concerns remained about downside risks to the global economy from unstable political developments overseas and geopolitical risks, demand for capital investment continued against a backdrop of improving employment and income conditions and solid corporate earnings.」
While continuing to cite concerns about downside risks from unstable political developments overseas and geopolitical risks, the company describes the domestic economy, corporate earnings and demand for capital investment as being on a moderate recovery trend. - FY2019-Q2WorsenedAnnual report
「During the cumulative second quarter under review (from 1 April 2018 to 30 September 2018), Japan’s economy remained on a moderate recovery trend despite concerns including the impact of the intensifying U.S.-China trade friction and heightened geopolitical risks, supported by solid corporate earnings and improvements in employment and income conditions.」
Regarding overseas risks, the U.S.-China trade friction is described as intensifying and is cited, together with heightened geopolitical risks, as a factor of concern. Meanwhile, the domestic economy is described as being on a moderate recovery trend. - FY2018Greater specificity regarding overseas risk factorsAnnual report
「Overseas, the uncertain outlook continued due to factors including the impact of U.S. trade policy on exporting companies and heightened geopolitical risks, but conditions remained generally solid.」
Regarding uncertainty in overseas economies, the company specifically describes the impact of U.S. trade policy on exporting companies in addition to the previously cited geopolitical risks. At the same time, it describes overall conditions as solid. - FY2018-Q3RestatedAnnual report
「During the cumulative third quarter under review, Japan’s economy continued on a moderate recovery trend. Although concerns were raised about the impact of heightened geopolitical risks overseas, increased exports and expanded production against a backdrop of a strong overseas economy led to improved corporate earnings, and capital investment was expected to increase.」
While additionally mentioning geopolitical risks overseas as a factor of concern, the company describes overseas economies, exports, production and corporate earnings as being on a recovery trend. - FY2018-Q2MitigatedAnnual report
「In the petrochemical, steel, machinery manufacturing and other industries that constitute our group’s existing business areas, capacity utilization has remained high against a backdrop of solid domestic and overseas demand,」
Domestic and overseas demand is described as solid and capacity utilization as high, indicating that the previously cited uncertainty in the economic environment and impact on corporate earnings have eased. - FY2018-Q1RestatedAnnual report
「Uncertainty remains regarding the future course of emerging-market economies, including China, and Western economies, and the uncertain outlook therefore continues.」
The company continues to cite uncertainty regarding the direction of emerging-market economies and Western economies, as well as the lack of visibility into the outlook. - FY2017MaterialisedAnnual report
「In the petrochemical, steel, machinery manufacturing and other industries that constitute our group’s existing business areas, the impact of rising raw material costs and foreign-exchange fluctuations on corporate earnings has been observed,」
The disclosure states that the impact of rising raw material costs and foreign-exchange fluctuations on corporate earnings is already being observed. - FY2017-Q2First statedAnnual report
「In the petrochemical, steel, machinery manufacturing and other industries that constitute our group’s existing business areas, terms of trade are deteriorating as the yen appreciates,」
In addition to the previously noted risk of a halt or delay in demand for facility renewals, the company explicitly identifies deterioration in the group’s terms of trade due to yen appreciation. The preceding section also cites sluggish personal consumption, significant foreign-exchange fluctuations, slowing growth in emerging economies including China, and instability in the European economy as factors contributing to the uncertain outlook.