Estimates for Valuable Materials Such as Scrap and Market Fluctuations
First written in FY2017. 2 of 5 entries say "Restated". Latest entry: FY2022-Q3.
The whole theme swung hardest in 2025: 9 of 10 companies on the "Worse" side.
1 other company's latest entry also says "Restated".
- FY2022-Q3RestatedAnnual report
「In the plant decommissioning business, net sales from completed construction amounted to ¥3,481.922 million, up 46.5% year on year, as rising scrap prices at large-scale sites increased sales and construction projects subject to the percentage-of-completion method progressed steadily.」
The Company explained that rising scrap prices at large-scale sites boosted sales, resulting in a 46.5% year-on-year increase in net sales from completed construction. - FY2022-Q2RestatedAnnual report
「As a result of rising scrap prices and steady progress on construction projects subject to the percentage-of-completion method, net sales amounted to ¥2,335.510 million, up 42.7% year on year. On the profit side, operating profit amounted to ¥161.591 million, up 1,312.2%, ordinary profit amounted to ¥273.779 million, up 1,441.2%, and quarterly net profit attributable to owners of the parent amounted to ¥220.088 million, up 3,394.8%, owing to the boost from higher scrap prices and efforts to control selling, general and administrative expenses.」
The Company explained that rising scrap prices again boosted net sales, operating profit, ordinary profit and quarterly net profit attributable to owners of the parent during the quarter. - FY2022-Q1Rising market prices boosted performanceAnnual report
「As a result of rising scrap prices and steady progress on construction projects subject to the percentage-of-completion method, net sales amounted to ¥1,318.910 million, up 46.3% year on year. On the profit side, operating profit amounted to ¥198.317 million, up 1,210.4%, ordinary profit amounted to ¥196.000 million, up 1,111.9%, and quarterly net profit attributable to owners of the parent amounted to ¥132.825 million, up 2,131.7%, owing to the boost from higher scrap prices and efforts to control selling, general and administrative expenses.」
The Company explained that scrap prices surged during the quarter, contributing to higher net sales and profit. - FY2018DroppedAnnual report
「When accepting orders, the Company comprehensively estimates the value of saleable materials based on their material, quantity and prices, including market prices for iron, stainless steel and copper, negotiates accordingly, and determines the contract price.」
The method for estimating saleable materials remains in the business description, but the current risk list no longer explicitly identifies estimation errors and market fluctuations as risks to performance, as was done previously. - FY2017First statedAnnual report
「However, if the value of saleable materials cannot be estimated appropriately and the actual sale proceeds differ significantly from the estimated deduction, the profitability of construction projects, including proceeds from the sale of saleable materials, may decline. In addition, particularly in long-term, large-scale construction projects, estimates may be affected by fluctuations in market prices for saleable materials, increasing estimation risk and potentially affecting the Company's performance.」
Sale proceeds from saleable materials were disclosed as ¥570.525 million in the previous fiscal year and ¥268.973 million in the current fiscal year. The Company stated that market fluctuations increase estimation risk in long-term, large-scale construction projects.