Profit growth from domestic branches and domestic subsidiaries

「Operating profit declined by ¥67 million year on year to ¥142 million because the construction profit margin fell after unexpected costs were incurred for the treatment of discharged slurry on a pile construction project in the Tokyo metropolitan area.」

「In terms of profit, results in Japan fell below the prior fiscal year because some branches were severely affected by declining revenue.」

「In Japan, despite the impact of postponed construction starts, steady progress on major highway repair work in Hokkaido resulted in revenue of ¥9.388 billion, up ¥685 million year on year, and operating profit of ¥569 million, up ¥34 million year on year.」

「In Japan, revenue declined to ¥8,703 million, down ¥585 million year on year, due to delays in construction awards and the impact of price competition. Operating profit was also very weak.」

「In terms of profit, results in Japan significantly exceeded the plan because expressway repair projects in Hokkaido progressed steadily.」

「In Japan, delays in project starts, intensified competition for orders, and the completion of power-related projects in the Tokyo metropolitan area resulted in revenue of ¥14,441 million, down ¥1,865 million year on year, and operating income of ¥732 million, down ¥149 million.」

「As a result, the Company posted non-consolidated ordinary income of ¥1,132 million, exceeding the initial plan.」

「As large-scale mechanized construction in urban areas, energy-related projects, and railway-related projects performed steadily, orders and project execution overall exceeded the initial plan, and the Company posted non-consolidated ordinary income of ¥800 million.」

「In Japan, although performance varied among branches due to factors including delays in project starts, orders and project execution overall exceeded the initial plan, and the Company posted non-consolidated ordinary income of ¥455 million.」

「In terms of profits, domestic results exceeded plan as productivity improved through large-scale heavy-equipment projects, including obstacle-removal work related to urban redevelopment, while energy-related projects and expressway repair projects also progressed smoothly.」

「In terms of earnings, improved productivity through mechanized construction centered on heavy machinery contributed to performance, enabling the Company to exceed the plan.」

「In terms of profits, the company was able to secure profits by improving the efficiency of mechanized construction centered on heavy equipment.」

「Although strong orders and project execution by its domestic branches resulted in ordinary income of ¥254 million on a non-consolidated basis,」

「However, efforts to improve construction profit margins and the effect of reducing indirect costs enabled the Company to exceed its profit plan.」

「At domestic branches, orders were in line with the plan, but completed construction revenue fell short of the plan because progress on some projects was delayed. However, profits exceeded the plan as a result of efforts to improve construction margins and the effect of reducing indirect costs.」

「In terms of profit, productivity in mechanical construction was improved, mainly through obstacle-removal work related to urban redevelopment, large heavy-equipment projects, and thermal power and energy-related projects. In addition, successful negotiations over settlements and other matters related to the Chuo Shinkansen enabled the Company to add to profit throughout the fiscal year.」

「At domestic branches, although completed construction revenue was affected by delays in starting some projects, the effects of efforts to reduce unprofitable construction projects became apparent. The cost ratio improved by 3.8 percentage points year on year, contributing to higher profits.」

「Although some construction orders at domestic branches were deferred, the smooth progress of major projects enabled the company to increase profits.」

「The Company was able to steadily generate profit as a result of strong orders and project progress at its domestic branches.」

「Although unprofitable construction projects in Tokyo resulted in substantial losses, profits were increased in the second half of the consolidated fiscal year through highly profitable large-scale heavy machinery projects, including obstacle-removal work related to urban redevelopment, as well as thermal energy-related projects and additional heavy machinery projects related to the Chuo Shinkansen around major metropolitan areas.」

「Although unprofitable construction projects in Tokyo occurred in the second quarter, construction progressed smoothly from the second half onward. Together with increased profits at domestic branches and subsidiaries, this improved earnings, enabling the Company to secure ordinary income of ¥567 million, an increase of ¥123 million year on year.」

「Although the Company posted ordinary income of ¥198 million on strong orders and project execution by its domestic branches,」

「In terms of profit, in addition to large domestic projects, including reconstruction-related projects in the Tohoku region, increased urban redevelopment projects and heavy-equipment work related to the Chuo Shinkansen in areas surrounding major cities drove profit growth, enabling the Company to add to profit in the second half of the fiscal year.」

「Progress on projects in hand at domestic branches exceeded expectations, resulting in net sales of ¥16,847 million, up ¥2,114 million from the same quarter of the previous year. In terms of earnings, despite delays in construction progress at JAFEC USA, the U.S. subsidiary, increased profits at domestic branches and subsidiaries resulted in operating income of ¥317 million, compared with an operating loss of ¥443 million in the same quarter of the previous year, and ordinary income of ¥443 million, compared with an ordinary loss of ¥270 million, representing a significant improvement.」