Delays in repair work progress due to schedule delays in large carried-over construction projects

「Consolidated gross profit declined by ¥114 million, although the gross profit margin increased by 0.1 percentage points. The main reasons for the decline were the profit impact of lower revenue and the occurrence of additional costs due to rework in the steel-frame construction field of the building materials manufacturing and sales business.」

「During the fiscal year, work on projects won during the period progressed steadily, but the volume of projects completed declined as opening orders decreased. In addition, increases for additional work were not approved for some major projects.」

「Although profitability improved through selective order-taking, higher costs on projects delayed by work stoppages resulted in operating profit increasing by ¥79 million from the previous fiscal year and by ¥98 million versus the initial forecast.」

「During the nine months ended the third quarter, revenue increased because construction progress on projects won during the period was steady. The company also worked to secure profit through increases and improved profit margins on projects progressing as scheduled, resulting in higher profit.」

「During the three months ended the first quarter, projects under construction required redesign and design revisions, delaying the schedule. However, the company worked to secure profit through increases and improved profit margins on projects progressing as scheduled. As a result, this business reported revenue of ¥441 million, down 29.9% year on year, and operating profit of ¥54 million, down 4.6%.」

「During the fiscal year, progress on some major projects recovered and increases for additional work arising in contracted projects were approved. However, higher construction costs, including those attributable to projects delayed by schedule disruptions, resulted in higher revenue but lower profit.」

「During the cumulative third quarter of the current consolidated fiscal year, net sales and profit increased due to the recovery in the progress of some large projects and approval of increases in the amounts of additional work arising in projects received. As a result, net sales in this business were ¥1,655 million, up 14.5% year on year, and operating income was ¥145 million, up 2.2%.」

「In this business, we are advancing repair and strengthening work on bridges and tunnels as measures to address the aging of social infrastructure. With national resilience measures and related initiatives progressing, the order environment remains favorable. During the six months ended the second quarter, the business reported lower revenue and lower profit due to delays in the progress of major projects and higher construction costs. As a result, it reported revenue of ¥1,017 million, down 1.3% year on year, and operating profit of ¥71 million, down 29.5%.」

「During the cumulative first quarter of the current consolidated fiscal year, the opening order backlog was larger than in the previous fiscal year and was worked through steadily. As a result, net sales in this business were ¥629 million, up 53.2% year on year, and operating income was ¥56 million, up 42.6%.」

「During the fiscal year, there was little impact from COVID-19 at construction sites, and work progressed as scheduled, resulting in revenue at approximately the same level as the previous year.」

「During the nine months ended the third quarter, there was little impact from COVID-19 at construction sites, and work progressed as scheduled, resulting in revenue at approximately the same level as the previous year.」

「In this business, we are advancing repair and strengthening work on bridges and tunnels as measures to address the aging of social infrastructure. With national resilience measures and related initiatives progressing, the order environment remains favorable. During the six months ended the second quarter, profit increased because projects carried over from the previous fiscal year were completed as scheduled.」

「During the three months ended the first quarter, personnel were prioritized for major projects carried over from the previous fiscal year, pushing the completion of the opening order backlog into the following quarter and beyond. As a result, this business reported revenue of ¥411 million, down 17.3% year on year, and operating profit of ¥39 million, down 42.2%.」

「In the repair and strengthening business, construction costs decreased by ¥34 million from the previous fiscal year and by ¥12 million versus the initial forecast, due to higher construction costs resulting from additional personnel assigned to secure the construction period for prime contracts and higher costs, including standby expenses, resulting from work stoppages caused by two heavy-rain disasters.」

「During the three months ended the first quarter, progress on carried-over projects, including projects related to hydroelectric power plants, and revenue from carried-over design projects contributed to higher revenue and higher profit.」

「During the fiscal year, delays in construction progress occurred due to schedule delays on some major carried-over projects, resulting in lower revenue and lower profit. As a result, this business reported revenue of ¥2,046 million, down 3.4% year on year, and operating profit of ¥235 million, down 8.0%.」

「During the nine months ended the third quarter, delays in the schedules of some major carried-over projects led to delays in construction progress, resulting in lower revenue and lower profit. As a result, this business reported revenue of ¥1,391 million, down 8.5% year on year, and operating profit of ¥131 million, down 20.6%.」

「During the six months ended the second quarter, delays occurred in the schedules of some major carried-over projects, resulting in delays in construction progress. As a result, this business reported revenue of ¥806 million, down 6.3% year on year, and operating profit of ¥68 million, up 4.1%.」