Improved profitability in the construction business driven by high utilization rates and steady construction progress
First written in FY2019-Q2. 13 of 25 entries say "Worsened", first in FY2020-Q2. Latest entry: FY2027-H1.
Toyo Asano Foundation moved to the "Worse" side of this theme in 2020, 1 year after the typical company in this theme (2019).
The whole theme swung hardest in 2023: 3 of 13 companies on the "Worse" side.
1 other company's latest entry also says "Worsened".
- FY2027-H1WorsenedAnnual report
「In terms of results, net sales were affected by the lower-than-expected number of high-value-added projects. Profit and loss were affected by sluggish demand and intensifying price competition in the company's main market, as well as rising raw material prices resulting from the situation in the Middle East. As a result, net sales for the cumulative consolidated second quarter period under review were ¥6,186 million, down 13.6% from the previous interim consolidated accounting period, and operating income was ¥296 million, down 60.9%.」
In the foundation business, the number of high-value-added projects was lower than expected, while sluggish demand, price competition and rising raw material prices led to substantial declines in net sales and operating income. - FY2026WorsenedAnnual report
「Performance was affected not only by weak demand but also by significant delays in construction starts. As a result, revenue for the current consolidated fiscal year was ¥11,492 million, down 19.1% from the previous consolidated fiscal year, while operating profit was ¥632 million, down 43.1%.」
Weak demand and significant delays in construction starts reduced revenue and operating profit in the foundation business, worsening the profitability environment for the foundation business, including the construction business. - FY2025WorsenedAnnual report
「Performance was affected not only by weak demand but also by delays in construction starts. As a result, revenue for the current consolidated fiscal year was ¥14,201 million, down 4.4% from the previous consolidated fiscal year, while operating profit was ¥1,111 million, down 22.1%.」
In the foundation business, weak demand and delayed construction starts resulted in revenue falling 4.4% and operating profit falling 22.1%. - FY2022MitigatedAnnual report
「As in the concrete secondary products business, the company secured many orders, but construction costs, particularly labor costs, increased significantly because work was concentrated in the second half of the year. However, construction efficiency improved, resulting in revenue for the current consolidated fiscal year of ¥7,095 million, up 5.2% from the previous consolidated fiscal year, and operating profit of ¥491 million, up 3.9%.」
Although construction costs increased because work was concentrated in the second half of the year, improved construction efficiency enabled revenue and operating profit to exceed the previous year's levels, representing an improvement from the deterioration caused by delayed project starts and other factors in the previous year. - FY2022-Q3WorsenedAnnual report
「In the third quarter, projects carried over from the second quarter were completed smoothly, but the company temporarily became extremely busy because there were many ongoing projects from the second quarter as well as many newly started projects. As a result, completion of some large projects was pushed into the fourth quarter, causing the profit plan to fall below the initial plan. Revenue for the cumulative third quarter of the current consolidated fiscal year was ¥4,936 million, up 1.0% from the same quarter of the previous year, while operating profit was ¥169 million, down 47.5%.」
Although carried-over projects were completed smoothly, completion of some large projects was pushed into the fourth quarter due to the heavy workload, causing profit to fall below plan. Revenue increased only 1.0%, while operating profit fell 47.5%. - FY2022-Q2WorsenedAnnual report
「During the cumulative second quarter of the current consolidated fiscal year, the company conducted active sales activities and planned many construction projects, as in the concrete secondary products business. However, starts were delayed beyond plan for many projects, particularly large projects, and completion was pushed into the third quarter or later. As a result, revenue for the cumulative second quarter of the current consolidated fiscal year was ¥2,713 million, down 9.5% from the same quarter of the previous year, while operating profit was ¥69 million, down 68.0%.」
Project starts, particularly for large projects, were delayed beyond plan, and completion was pushed into the third quarter or later, resulting in year-on-year declines in revenue and operating profit in the construction business. - FY2022-Q1MitigatedAnnual report
「As in the concrete secondary products business, outstanding contracted construction work was completed and progressed smoothly. As a result, revenue for the cumulative first quarter of the current consolidated fiscal year was ¥1,810 million, up 78.8% from the same quarter of the previous year, while operating profit was ¥132 million, compared with profit of ¥2 million in the same quarter of the previous year.」
Completion of outstanding contracted construction work and steady progress drove an 78.8% year-on-year increase in revenue in the construction business, while operating profit rose from ¥2 million to ¥132 million. Performance improved this quarter from the deterioration caused by delayed project starts and low-margin projects in the previous year. - FY2021WorsenedAnnual report
「As in the concrete secondary products business, completion of major projects was concentrated from the second half onward, causing the construction cost ratio, particularly labor costs, to rise significantly. As a result, revenue for the current consolidated fiscal year was ¥6,745 million, up 20.3% from the previous consolidated fiscal year, while operating profit was ¥472 million, down 13.6%.」
Revenue increased, while operating profit fell 13.6% due to the rise in the construction cost ratio, particularly labor costs, associated with the concentration of major project completions, representing a deterioration from the previous year's improvement in profitability. - FY2021-Q3Higher sales alongside lower profitAnnual report
「As in the concrete secondary products business, completion of projects was carried over to the second quarter and some projects were delayed in starting. However, the commencement and completion of major projects progressed as scheduled. As a result, revenue for the cumulative third quarter of the current consolidated fiscal year was ¥4,886 million, up 22.5% from the same quarter of the previous year, while operating profit was ¥322 million, down 19.0%.」
Although some project completions were carried over and some projects were delayed in starting, the commencement and completion of major projects progressed as scheduled. Revenue increased 22.5%, while operating profit fell 19.0%. - FY2021-Q2MitigatedAnnual report
「Although, as in the concrete secondary products business, completion of projects was carried over from the first quarter to the second quarter and some projects were delayed in starting, the commencement and completion of major projects progressed as scheduled in the second quarter. As a result, revenue for the cumulative second quarter of the current consolidated fiscal year was ¥2,999 million, up 6.8% from the same quarter of the previous year, while operating profit was ¥218 million, down 43.7%.」
Although project completions carried over from the first quarter and delays in starting projects occurred, the commencement and completion of major projects progressed as scheduled. Operating profit, however, declined year on year. - FY2021-Q1WorsenedAnnual report
「In addition to low-margin large projects accounting for a large share of revenue, many projects were delayed in starting, as in the concrete secondary products business, and revenue recognition was expected to be pushed into the second quarter. As a result, revenue for the cumulative first quarter of the current consolidated fiscal year was ¥1,013 million, down 39.7% from the same quarter of the previous year, while operating profit was ¥2 million, down 99.1%.」
Due to the emergence of low-margin large projects and projects with delayed starts, revenue in the construction business fell 39.7% and operating profit fell 99.1%, representing a deterioration from the improvement in profitability driven by high operating rates and steady progress in the previous year. - FY2020WorsenedAnnual report
「The company worked to strengthen its quality assurance system, expand management resources and develop construction methods suited to customer needs. However, for the same reasons as in the concrete secondary products business, revenue and profit remained sluggish, and completion of major projects was pushed into the following consolidated fiscal year. As a result, revenue for the current consolidated fiscal year was ¥5,605 million, down 19.0% from the previous consolidated fiscal year, while operating profit was ¥547 million, down 42.8%.」
Although efforts such as strengthening the quality assurance system continued, revenue in the construction business fell 19.0% and operating profit fell 42.8% because project completions were pushed back. - FY2020-Q3WorsenedAnnual report
「The company worked to strengthen its quality assurance system, expand management resources and develop construction methods suited to customer needs. However, for the same reasons as in the concrete secondary products business, revenue and profit remained sluggish, and the completion of major construction projects was concentrated in the fourth quarter. As a result, revenue for the cumulative third quarter of the current consolidated fiscal year was ¥3,989 million, down 26.4% from the same quarter of the previous year, while operating profit was ¥398 million, down 49.8%.」
Although efforts such as strengthening the quality assurance system continued, revenue and profit remained sluggish, and the concentration of major project completions in the fourth quarter resulted in revenue falling 26.4% and operating profit falling 49.8%. - FY2020-Q2WorsenedAnnual report
「The company worked to strengthen its quality assurance system, expand management resources and develop construction methods suited to customer needs. However, for the same reasons as in the concrete secondary products business, revenue and profit remained sluggish. As a result, revenue for the cumulative second quarter of the current consolidated fiscal year was ¥2,809 million, down 26.6% from the same quarter of the previous year, while operating profit was ¥388 million, down 42.2%.」
Although the construction business continued efforts such as strengthening its quality assurance system, revenue and profit remained sluggish, with revenue down 26.6% and operating profit down 42.2%. Business performance deteriorated from the improvement in profitability driven by high operating rates and steady construction progress in the previous year. - FY2019RestatedAnnual report
「Against a very favorable business environment, construction operating rates remained high and construction work generally progressed smoothly. As a result, revenue for the current consolidated fiscal year was ¥6,916 million, up 11.4% from the previous consolidated fiscal year, while operating profit was ¥957 million, up 89.5%.」
The company continues to state that construction operating rates were high and construction progressed smoothly, resulting in year-on-year increases in full-year revenue and operating profit in the construction business. - FY2019-Q3RestatedAnnual report
「Against a very favorable business environment, construction operating rates remained high and construction work generally progressed smoothly. As a result, revenue for the cumulative third quarter of the current consolidated fiscal year was ¥5,420 million, up 20.0% from the same quarter of the previous year, while operating profit was ¥794 million, up 139.2%.」
The company continues to state that construction operating rates remained high and construction work progressed smoothly, resulting in year-on-year increases in revenue and operating profit in the construction business. - FY2019-Q2First statedAnnual report
「Against a very favorable business environment, construction operating rates remained high and construction work generally progressed smoothly. As a result, revenue for the cumulative second quarter of the current consolidated fiscal year was ¥3,827 million, up 26.6% from the same quarter of the previous year, while operating profit was ¥671 million, up 214.6%.」
The company states that revenue and operating profit in the construction business increased year on year as construction operating rates remained high and construction work progressed smoothly.