Komori
Revision of earnings forecasts1786Oriental Shiraishi CorporationConstruction and Materials

Notice Regarding Recognition of an Extraordinary Loss Related to Construction Work by a Subsidiary and Revision of the Full-Year Earnings Forecast

For the full-year consolidated earnings forecast for the fiscal year ending March 2026, sales, operating income and ordinary income remain unchanged, while net income attributable to owners of the parent has been reduced by ¥550 million due to costs including the remanufacture and re-erection of structures resulting from defective construction by a subsidiary.

Worth reading
73In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Deterioration
Direction inferred from the company’s description.
Scale
-550
¥ million
Wording
Avoiding a definitive answer
How definitive the wording is.

Revised forecast

Fiscal year ending March 2026 · Full yearPrevious forecast published Announced on 13 February 2026
Net Sales66,000→66,000million
0.0%
Operating profit4,900→4,900million
0.0%
Ordinary income4,900→4,900million
0.0%
Profit attributable to owners of the parent3,250→2,700million
-16.9%
Net income per share21.15→20.87yen and sen
-1.3%

The bar length represents the relative magnitude of change, based on the item that changed the most in this document. The percentage change shown by the dotted line is calculated from the two reported figures because the company did not provide the rate.

Reason for the revision

Additional costs will be incurred by the relevant subsidiary. Approximately ¥230 million will be recorded as a provision for losses on construction contracts for expected future losses on construction contracts from the current fiscal year onward. Operating income and ordinary income are expected to remain in line with the previous forecast due to improved profitability in the construction business. However, approximately ¥770 million in costs related to re-erection and other expenses will be recorded as an extraordinary loss, reducing net income for the current fiscal year by a total of approximately ¥1,000 million.

Details and amount of extraordinary loss

Approximately ¥770 million in costs related to re-erection and other expenses will be recorded as an extraordinary loss. Approximately ¥230 million in expected future losses on construction contracts from the current fiscal year onward will be recorded as a provision for losses on construction contracts, bringing the total to approximately ¥1,000 million. The current estimate of total costs related to remanufacture, re-erection and other expenses is approximately ¥5.0 billion.

Previous-period resultsSales: ¥64,553 million; operating income: ¥5,434 million; ordinary income: ¥5,556 million; net income attributable to owners of the parent: ¥3,715 million; earnings per share: ¥28.07 (fiscal year ended March 2025)
Consolidated / non-consolidatedConsolidated
Revised forecast
ItemDetails
Net Sales¥66,000 million → ¥66,000 million(0.0%)
Operating profit¥4,900 million → ¥4,900 million(0.0%)
Ordinary income¥4,900 million → ¥4,900 million(0.0%)
Profit attributable to owners of the parent¥3,250 million → ¥2,700 million(-16.9%)
Net income per share21.15 yen and sen → 20.87 yen and sen
Fiscal Period CoveredFiscal year ending March 2026
Period CoveredFull year
Publication date of previous forecastAnnounced on 13 February 2026
Previous-period resultsSales: ¥64,553 million; operating income: ¥5,434 million; ordinary income: ¥5,556 million; net income attributable to owners of the parent: ¥3,715 million; earnings per share: ¥28.07 (fiscal year ended March 2025)
Reason for the revisionAdditional costs will be incurred by the relevant subsidiary. Approximately ¥230 million will be recorded as a provision for losses on construction contracts for expected future losses on construction contracts from the current fiscal year onward. Operating income and ordinary income are expected to remain in line with the previous forecast due to improved profitability in the construction business. However, approximately ¥770 million in costs related to re-erection and other expenses will be recorded as an extraordinary loss, reducing net income for the current fiscal year by a total of approximately ¥1,000 million.
Details and amount of extraordinary lossApproximately ¥770 million in costs related to re-erection and other expenses will be recorded as an extraordinary loss. Approximately ¥230 million in expected future losses on construction contracts from the current fiscal year onward will be recorded as a provision for losses on construction contracts, bringing the total to approximately ¥1,000 million. The current estimate of total costs related to remanufacture, re-erection and other expenses is approximately ¥5.0 billion.
Consolidated / non-consolidatedConsolidated
Items this document does not state (1)
Dividend forecast revision

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The nonconformity of products manufactured by Kanadevia Corporation, which had been commissioned by a consolidated subsidiary, requires the remanufacture and re-erection of a bridge, resulting in additional costs. Approximately ¥230 million will be recorded as a provision for losses on construction contracts, and approximately ¥770 million as an extraordinary loss. Operating income and ordinary income are expected to remain in line with the previous forecast due to improved profitability in the construction business.

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Notice Regarding Recognition of an Extraordinary Loss Related to Construction Work by a Subsidiary and Revision of the Full-Year Earnings Forecast | Oriental Shiraishi Corporation (1786) timely disclosure | Komori