Product and construction defects and unprofitable construction projects
First written in FY2016. 11 of 27 entries say "Mitigated", first in FY2017-Q2. Latest entry: FY2026.
No other company in this theme has enough history to compare yet.
- FY2026MitigatedAnnual report
「Change in provision for construction losses (△ indicates a decrease) △ 18,510 —」
The provision balance for construction losses fell from ¥18.51 million at the end of the previous fiscal year to zero, and the company stated that the continued effects of construction efficiency, cost management, and risk management had contained the deterioration in profitability of large projects. - 2026-05-13MitigatedResults
「工事損失引当金の増減額（△は減少） △18,510 －」
工事損失引当金の計上額は当期ゼロとなり、不採算工事リスクの財務上のエクスポージャーは前期より低下している。 - FY2025MitigatedAnnual report
「Provision for construction losses — thousand yen」
The provision for construction losses fell from ¥18,510 thousand at the end of the previous fiscal year to zero. The company described rigorous risk management based on past construction losses and prevention of declining project profitability as factors behind the improvement in profit. - FY2025-H1MitigatedAnnual report
「In terms of profit, in addition to higher revenue, the continued benefits of improved construction efficiency and stricter cost management reduced the deterioration in profitability of large projects seen in the same period of the previous year, resulting in operating profit of ¥1,878 million (up 22.0% year on year).」
The deterioration in profitability of large projects seen in the same period of the previous year declined, and the provision for construction losses fell from ¥18.51 million at the end of the previous fiscal year to zero. Exposure to loss-making construction project risk has declined. - FY2024MaterialisedAnnual report
「Provision for construction losses included in cost of completed construction contracts」
Construction losses arose in connection with large construction projects and other projects, and a provision for construction losses of ¥18,510 thousand was recorded. The risk of loss-making construction projects materialized in the full-year results. - FY2024-Q3MaterialisedAnnual report
「Operating profit was ¥1,693 million (down 22.2% year on year), mainly because construction losses and provisions for construction losses were recorded for some large construction projects.」
Construction losses and provisions for construction losses actually arose on some large construction projects. The provision for construction losses stood at ¥183,458 thousand. - FY2023-Q3MitigatedAnnual report
「Provision for construction losses 22,150 1,570」
The provision for construction losses decreased from ¥22.15 million at the end of the previous fiscal year to ¥1.57 million at the end of the third quarter, reducing the provision balance related to loss-making construction projects. - FY2023-Q2MitigatedAnnual report
「Provision for construction losses 22,150 3,260」
The provision for construction losses decreased from ¥22.15 million at the end of the previous fiscal year to ¥3.26 million at the end of the second quarter, reducing the provision balance related to loss-making construction projects. - FY2023-Q1WorsenedAnnual report
「Provision for construction losses 22,150 42,480」
The provision for construction losses increased from ¥22.15 million at the end of the previous fiscal year to ¥42.48 million at the end of the first quarter, increasing the provision balance related to loss-making construction projects. - FY2022WorsenedAnnual report
「Provision for construction losses 5,600 thousand yen 22,150 thousand yen」
The provision for construction losses increased from ¥5.6 million at the end of the previous fiscal year to ¥22.15 million, increasing the provision balance related to loss-making construction projects. - FY2022-Q3WorsenedAnnual report
「Provision for construction losses 5,600 37,740」
The provision for construction losses increased from ¥5.6 million at the end of the previous fiscal year to ¥37.74 million at the end of the third quarter, increasing the provision balance related to loss-making construction projects. - FY2022-Q2WorsenedAnnual report
「Provision for construction losses 5,600 40,510」
The provision for construction losses increased from ¥5.6 million at the end of the previous fiscal year to ¥40.51 million at the end of the second quarter, increasing the provision balance related to loss-making construction projects. - FY2022-Q1WorsenedAnnual report
「Provision for construction losses 5,600 36,120」
The provision for construction losses increased from ¥5.6 million at the end of the previous fiscal year to ¥36.12 million at the end of the first quarter, increasing the provision balance related to loss-making construction projects. - FY2021MaterialisedAnnual report
「Provision for construction losses — 5,600」
Against a zero provision for construction losses at the end of the previous fiscal year, ¥5.6 million was recorded at the end of the current fiscal year, indicating that a provision related to loss-making construction projects had arisen again. - FY2020-Q3MitigatedAnnual report
「Provision for construction losses 27,639 24,430」
The provision for construction losses decreased from ¥27.639 million at the end of the previous fiscal year to ¥24.430 million at the end of the third quarter, reducing the provision balance related to loss-making construction projects. - FY2020-Q2MitigatedAnnual report
「Provision for construction losses 27,639 26,000」
The provision for construction losses decreased from ¥27.639 million at the end of the previous fiscal year to ¥26.000 million at the end of the second quarter, reducing the provision balance related to loss-making construction projects. - FY2020-Q1WorsenedAnnual report
「Provision for construction losses 27,639 51,886」
The provision for construction losses increased from ¥27.639 million at the end of the previous fiscal year to ¥51.886 million at the end of the first quarter, increasing the provision balance related to loss-making construction projects. - FY2019WorsenedAnnual report
「Provision for construction losses 24,061 27,639」
The provision for construction losses increased from ¥24.061 million at the end of the previous fiscal year to ¥27.639 million, increasing the provision balance related to loss-making construction projects. - FY2019-Q3RestatedAnnual report
「Provision for construction losses 24,061 7,217」
The provision for construction losses decreased from ¥24,061 thousand at the end of the previous fiscal year to ¥7,217 thousand, maintaining the decline in the provision balance related to loss-making construction projects compared with the end of the previous fiscal year. - FY2019-Q2MitigatedAnnual report
「Provision for construction losses 24,061 6,990」
The provision for construction losses decreased from ¥24,061 thousand at the end of the previous fiscal year to ¥6,990 thousand at the end of the second quarter, indicating reduced exposure to loss-making construction projects in terms of the provision balance. - FY2019-Q1WorsenedAnnual report
「There were also low-margin projects and projects requiring provisions for construction losses, resulting in segment profit of ¥332 million (down 40.8% year on year).」
Low-margin projects and projects requiring provisions for construction losses arose, and segment profit in the equipment construction business fell 40.8% from the same quarter of the previous year. - FY2018-Q3WorsenedAnnual report
「Provision for construction losses — 2,820」
The provision for construction losses, which was zero at the end of the previous fiscal year, was ¥2,820 thousand at the end of the third quarter. The provision related to loss-making construction projects had increased from the previous disclosure. - FY2018-Q2MaterialisedAnnual report
「Provision for construction losses — 270」
The provision for construction losses, which was zero at the end of the previous fiscal year, was ¥270 thousand at the end of the second quarter. This indicates that a provision related to a loss-making construction project had arisen, although it was not described as a large-scale loss-making construction project. - FY2017MitigatedAnnual report
「There were no large loss-making construction projects such as those incurred in the previous fiscal year, resulting in operating profit of ¥1,746 million (up 10.9% year on year).」
No large loss-making construction projects such as those in the previous fiscal year occurred, and the provision for construction losses was also zero at the end of the fiscal year. This indicates that the incidence of loss-making construction project risk had declined. - FY2017-Q3RestatedAnnual report
「There were also no large loss-making construction projects such as those incurred in the same quarter of the previous year, resulting in operating profit of ¥1,479 million (up 24.9% year on year), ordinary profit of ¥1,553 million (up 30.3%), and net profit attributable to owners of the parent of ¥1,062 million (up 33.1%).」
The company continues to explain that the large loss-making construction project incurred in the same quarter of the previous year did not occur in the current quarter, reconfirming the reduced level of risk. - FY2017-Q2MitigatedAnnual report
「In addition, there were no major unprofitable construction projects such as those that occurred in the same quarter of the previous year, and the gross profit margin exceeded that of the same quarter of the previous year,」
The company explained that the large loss-making construction project incurred in the same quarter of the previous year did not occur in the current quarter, indicating that the incidence of loss-making construction project risk has declined. - FY2016First statedAnnual report
「If a defect occurs that could result in significant warranty obligations or product liability claims, the Company may incur damages. In addition, if an unprofitable construction project arises due to unexpected additional costs during construction, it may affect the performance of the Group.」
The risks identified are damages arising from defects and unprofitable construction projects caused by additional costs during construction.