Securing Order Profitability Through Technical Proposals, Design Changes and Selective Order Acceptance
First written in FY2016. 12 of 40 entries say "Worsened", first in FY2019. Latest entry: 2026-11-06.
The Takigami Steel Construction moved to the "Worse" side of this theme in 2019, 7 years before the typical company in this theme (2026).
The whole theme swung hardest in 2022: 2 of 7 companies on the "Worse" side.
5 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「Margins in the bridge division recovered, partly due to the acquisition of design changes, while gross profit on completed construction contracts increased substantially in the steel structures division, partly because provisions for losses on construction contracts had been recognized in the previous fiscal year.」
Gross profit on completed construction contracts increased substantially, owing to the recovery in bridge margins from securing design changes and the reversal of the impact of provisions for losses on steel structure projects recognized in the previous fiscal year. - FY2026-H1Bridge earnings improved through design changes, while steel structures incurred lossesAnnual report
「In terms of earnings, the trend toward higher costs due to raw materials, labor and other expenses continued overall. However, in new bridge and maintenance projects, persistent efforts to secure design changes resulted in the acquisition of design changes that substantially improved profitability.」
Securing design changes contributed to improved profitability in bridge and maintenance projects, while a subsidiary whose main business is steel structures recognized substantial losses due to a deteriorating order environment. Improvements and deterioration in profitability on orders coexisted across the businesses. - FY2025WorsenedAnnual report
「In the steel structures manufacturing business, margins in the bridge division generally declined due to higher material and labor costs and other factors. In addition, the steel structures division recognized provisions for losses on construction contracts for large-scale steel structure projects in the Tokyo metropolitan area, resulting in a substantial decline in gross profit on completed construction contracts.」
The decline in bridge margins due to higher material and labor costs coincided with provisions for losses on large-scale steel structure projects, resulting in a 34.4% year-on-year decline in gross profit on completed construction contracts. - FY2025-H1WorsenedAnnual report
「In terms of earnings, cost inflation driven by higher personnel, fuel and other costs became apparent, and generally reduced margins on bridge construction. In steel structure construction, the recognition of a substantial provision for losses on construction contracts for a large-scale high-rise building project significantly depressed earnings for the segment as a whole.」
Cost inflation reduced margins on bridge construction, while a provision for losses on construction contracts for a large-scale high-rise building project exacerbated the challenge of securing profitability on orders. - FY2024Bridge operations improved while steel structures remained unprofitableAnnual report
「In the bridge division, the company’s bridge production volume declined from the previous fiscal year due to an increase in steel structure projects, but revenue from completed construction contracts in new bridge erection and maintenance work increased as large-scale projects progressed. … In the steel structures division, production of large-scale projects, including high-rise buildings in the Tokyo metropolitan area, peaked, and production volume increased substantially from the previous fiscal year, but profitability was difficult and the company recognized losses.」
Earnings improved in the bridge and maintenance divisions due to progress on large-scale projects and the subsidiaries’ success in securing design changes, while the steel structures division saw both higher production of high-rise projects and deteriorating profitability resulting in recognized losses. - FY2024-Q3WorsenedAnnual report
「The company recognized provisions for losses on construction contracts because deterioration in earnings was expected on specific large-scale bridge and steel structure projects.」
Deterioration in earnings was expected on specific large-scale bridge and steel structure projects, resulting in the recognition of provisions for losses on construction contracts. - FY2024-Q2Design changes and other factors contributed, but cost inflation continuedAnnual report
「Revenue from completed construction contracts increased year on year. In bridge construction, this reflected a substantial increase in site construction volume due to a higher number of projects undertaken by the company, as well as the contribution from welding work at a subsidiary brought into the consolidation scope last year. In steel structure construction, an increase in carried-over projects and design changes made a substantial contribution. In terms of earnings, cost inflation due to higher material and labor costs and other factors continued, but operating profit increased because the factors driving higher revenue had a significant impact.」
A higher number of bridge projects, welding work at a subsidiary, and carried-over steel structure projects and design changes contributed to higher revenue from completed construction contracts, while cost inflation continued. - FY2024-Q1WorsenedAnnual report
「On the other hand, operating profit declined due to higher material and personnel costs, among other factors.」
The increase in material and labor costs reduced operating profit in the steel structures manufacturing business, and the disclosure identified cost inflation as a factor behind deteriorating profitability on orders. - FY2023Design changes contributed, but provisions for losses on construction contracts increasedAnnual report
「In the bridge and maintenance divisions of the steel structures manufacturing business, earnings improved due to the recognition of design changes, mainly on road bridges, as well as the contribution from a new subsidiary. In the steel structures division, the company secured more orders for private-sector steel structure projects than in the previous fiscal year, but profitability remained difficult, and factors including the recognition of provisions for losses on construction contracts reduced gross profit on completed construction contracts.」
Design changes and a new subsidiary contributed to improved earnings in the bridge and maintenance divisions, while difficult profitability and provisions for losses on construction contracts continued in the steel structures division. - FY2023-Q3Provision for losses on construction contracts recognized, but operating loss narrowedAnnual report
「As in the second quarter, the company recognized a provision for losses on construction contracts on a new bridge project. However, factory operations remained strong, resulting in higher construction progress. In addition, increases in design changes, mainly on road bridges, and improved performance at subsidiaries in the segment contributed to revenue from completed construction contracts of ¥10.65 billion, up ¥2.13 billion, or 25.1%, year on year, and an operating loss of ¥6 million, compared with an operating loss of ¥60 million in the same period of the previous year.」
While a provision for losses on construction contracts arose on a new bridge project, the operating loss narrowed from ¥60 million in the same period of the previous year to ¥6 million, owing to higher factory utilization, more design changes, and improved subsidiary performance. - FY2023-Q2WorsenedAnnual report
「Although the company recognized a provision for losses on construction contracts due to an increase in unprofitable bridge and steel structure projects, the recovery in factory operations, the recognition of additional design changes on road bridges ordered by government agencies and private-sector customers, and strong subsidiary performance contributed positively. Consequently, revenue from completed construction contracts was ¥6.54 billion, up ¥1.59 billion, or 32.1%, year on year, and operating profit was ¥50 million, compared with an operating loss of ¥0 million in the same period of the previous year.」
The company recognized a provision for losses on construction contracts due to an increase in unprofitable projects. Meanwhile, the recovery in factory operations, additional design changes on road bridges, and strong subsidiary performance contributed to earnings. - FY2023-Q1MitigatedAnnual report
「Revenue from completed construction contracts benefited substantially from multiple additional design changes on road bridge projects ordered by government agencies and private-sector customers, as well as an increase in design changes on private-sector steel structure projects recognized by the company.」
Multiple additional design changes on road bridge and private-sector steel structure projects contributed to revenue from completed construction contracts, and the steel structures manufacturing business improved from operating profit of ¥20 million in the same period of the previous year to ¥420 million. - FY2022WorsenedAnnual report
「In the steel structures division, the company focused on securing orders for large-scale general steel structures and secured a certain volume of orders. However, because these were low-margin private-sector projects, the increased burden of factory overhead resulted in difficult construction results. Consequently, revenue from completed construction contracts was ¥11.62 billion, down ¥1.46 billion, or 11.2%, year on year, and the company reported an operating loss of ¥380 million, compared with operating profit of ¥700 million in the same period of the previous year.」
Although the company secured order volume for general steel structures, low-margin private-sector projects and the increased burden of factory overhead caused the operating result to turn from profit to an operating loss of ¥380 million. - FY2022-Q3WorsenedAnnual report
「In the subsidiary's maintenance business, earnings also increased as a result of higher revenue. However, completed construction revenue was ¥8.51 billion, down ¥930 million, or 9.9%, year on year, and the business recorded an operating loss of ¥60 million, compared with operating income of ¥100 million in the same period of the previous year.」
Although earnings increased in the maintenance business, the steel structures manufacturing business as a whole turned from operating profit to an operating loss of ¥60 million, indicating deteriorating profitability on orders. - FY2022-Q2Design changes contributed, but the company still posted an operating lossAnnual report
「The company was able to recognize design changes on thermal power plant-related projects ordered by private-sector customers, resulting in revenue from completed construction contracts of ¥4.95 billion, down ¥1.49 billion, or 23.2%, year on year, and an operating loss of ¥0 million, compared with operating profit of ¥6 million in the same period of the previous year.」
Design changes on thermal power plant-related projects contributed to earnings, but revenue from completed construction contracts declined, and operating profit turned from profit in the same period of the previous year to an operating loss of ¥0 million. - FY2022-Q1MitigatedAnnual report
「In addition, because the site operations division was only minimally affected by the COVID-19 pandemic, revenue from completed construction contracts was ¥2.4 billion, down ¥80 million, or 3.5%, year on year, and operating profit was ¥20 million, compared with an operating loss of ¥280 million in the same period of the previous year.」
Although revenue declined in the steel structures manufacturing business, the operating result turned from a loss of ¥280 million in the same period of the previous year to a profit of ¥20 million. - FY2021-Q2MitigatedAnnual report
「The company recognized design changes on some expressway projects, resulting in revenue from completed construction contracts of ¥6.45 billion, up ¥470 million, or 7.9%, year on year, and operating profit of ¥6 million, compared with an operating loss of ¥260 million in the same period of the previous year.」
The recognition of design changes on expressway projects turned the operating result from an operating loss in the same period of the previous year to operating profit. The design changes improved profitability. - FY2021-Q1WorsenedAnnual report
「Because factory utilization was held at approximately 50% due to measures to prevent COVID-19 and other factors, production volume declined substantially, and the allocation of common costs, including overhead, pushed up fabrication costs.」
While seeking to secure profitability on orders, lower factory utilization due to infection-control measures and the increased burden of common costs pushed up fabrication costs and contributed to the wider operating loss. - FY2020WorsenedAnnual report
「Regarding gross profit on completed construction contracts, in the bridge division of the steel structures manufacturing business, the margin on bridge construction continued to decline as the company shifted from a decrease in projects ordered by the Ministry of Land, Infrastructure, Transport and Tourism to private-sector projects and other work with weaker margins. In the steel structures division, the company expanded into general steel structures in addition to its traditional power-related projects, but these operations have not yet reached a profitable level and are weighing on earnings.」
Profitability continued to deteriorate as the company shifted toward low-margin private-sector projects following a decline in orders from the Ministry of Land, Infrastructure, Transport and Tourism, while general steel structures failed to achieve profitability. - FY2020-Q3WorsenedAnnual report
「Regarding quarterly results, in addition to the results through the second quarter, the Company was affected by lower-than-expected profitability on long-term, large-scale construction projects, among other factors. However, its subsidiaries recorded revenue steadily, resulting in completed construction revenue of ¥9,220 million, up ¥610 million, or 7.2%, year on year, and an operating loss of ¥410 million, compared with an operating loss of ¥160 million in the same period of the previous year.」
While working to secure profitability on orders, the earnings outlook for long-term large-scale projects deteriorated, resulting in a wider operating loss in the steel structures manufacturing business. - FY2020-Q2WorsenedAnnual report
「Operating results were affected by the recognition of a provision for losses on construction contracts due to deteriorating expected profitability on some bridge projects, as well as deteriorating profitability on private-sector steel structure projects. Consequently, the company reported an operating loss of ¥260 million, compared with an operating loss of ¥20 million in the same period of the previous year.」
While the company pursued existing initiatives to secure order profitability, deteriorating expected profitability on bridge projects coincided with deteriorating profitability on private-sector steel structure projects, causing the operating loss to widen from ¥20 million in the same period of the previous year to ¥260 million. - FY2020-Q1Higher costs due to labor shortages and continued operating lossesAnnual report
「Subcontracting costs, including transportation expenses, have been affected by rising labor costs resulting from labor shortages, leading to broad-based cost inflation.」
Although the operating loss narrowed from the same period of the previous year, higher labor costs due to labor shortages and increased subcontracting costs resulted in cost inflation, leaving an operating loss of ¥40 million. - FY2019WorsenedAnnual report
「In terms of earnings, most of the high-margin projects in the bridge division carried over from the previous consolidated fiscal year reached completion, while the increase in low-margin private-sector projects caused construction earnings to fall substantially below the usual level. In the steel structures division, revenue was recognized mainly from thermal power plant projects ordered by private-sector customers, as in the previous consolidated fiscal year, but results were difficult, with losses recognized on some projects. Consequently, revenue from completed construction contracts was ¥12.33 billion, down ¥970 million, or 7.3%, year on year, and operating profit was ¥120 million, down ¥580 million, or 82.6%.」
After the completion of high-margin projects, low-margin private-sector projects increased, while losses were recognized on some projects in the steel structures division. As a result, operating profit in the steel structures manufacturing business fell 82.6% year on year. - FY2019-Q3MaterialisedAnnual report
「For quarterly earnings, large-scale bridge and maintenance projects carried over from the previous fiscal year and completed by the end of the third quarter consolidated accounting period benefited from design changes and other positive factors. However, the main projects during the cumulative third quarter consolidated period were primarily low-margin projects, including private-sector orders. Revenue from completed construction contracts was ¥8.6 billion, down ¥880 million, or 9.3%, year on year, and the company reported an operating loss of ¥160 million, compared with operating profit of ¥520 million in the same period of the previous year.」
Design changes were a positive factor in large-scale bridge and maintenance projects, but the steel structures manufacturing business was centered on low-margin projects, including private-sector orders, and reported an operating loss of ¥160 million. - FY2019-Q2Design changes and cost reductions contributed, but low profitability resulted in an operating lossAnnual report
「For quarterly earnings, there were positive factors, including securing design changes on new bridge construction and maintenance projects and reducing costs in the site operations division of large-scale bridge projects. However, the company’s main projects were smaller carried-over projects and low-margin private-sector projects, resulting in revenue from completed construction contracts of ¥5.63 billion, down ¥520 million, or 8.5%, year on year, and an operating loss of ¥20 million, compared with operating profit of ¥90 million in the same period of the previous year.」
Securing design changes and reducing costs were cited as positive factors, but the impact of smaller carried-over projects and low-margin projects resulted in an operating loss. - FY2019-Q1MaterialisedAnnual report
「For quarterly earnings, deteriorating profitability on large-scale steel structure projects due to higher transportation and other costs required the recognition of a provision for losses on construction contracts.」
Deteriorating profitability on large-scale steel structure projects due to higher transportation and other costs materialized in the form of a provision for losses on construction contracts. - FY2018AdvancedAnnual report
「Gross profit on completed construction contracts was ¥2.37 billion, up ¥360 million, or 18.4%, year on year. This reflected improved margins on the company’s bridge projects and higher earnings at subsidiaries in the steel structures manufacturing business, as well as the impact of an increase in large-scale rental properties in the real estate leasing business.」
Gross profit on completed construction contracts rose 18.4% year on year, owing to improved margins on bridge projects and higher earnings at subsidiaries. Selective order-taking for steel structures also continued. - FY2018-Q3MitigatedAnnual report
「Production hours on some large-scale projects returned to normal from autumn onward, curbing the deterioration in profitability, and factory operations recovered to broadly normal levels. In addition, the company secured design changes on completed expressway projects and other work, enabling it to secure a certain level of profitability. Revenue from completed construction contracts was ¥9.49 billion, down ¥530 million, or 5.4%, year on year, and operating profit was ¥520 million, up ¥70 million, or 16.9%.」
The deterioration in profitability caused by higher production hours on large-scale projects was brought under control, while securing design changes also contributed to a 16.9% year-on-year increase in operating profit. However, revenue from completed construction contracts fell 5.4%, and the issue was not described as having been fully resolved. - FY2018-Q2MaterialisedAnnual report
「For quarterly earnings, production hours exceeded expectations on some large-scale projects, resulting in a substantial increase in factory fabrication costs. For carried-over projects, we worked to secure new design changes, mainly in site construction, but this was insufficient to offset the deterioration in profitability. Revenue from completed construction contracts was ¥6.16 billion, down ¥200 million, or 3.2%, year on year, and operating profit was ¥90 million, down ¥150 million, or 62.5%.」
Production hours exceeded expectations on large-scale projects, and the resulting substantial increase in factory fabrication costs and deterioration in profitability were reflected in the results. Although the company worked to secure design changes, profitability has not yet been restored. - FY2018-Q1MaterialisedAnnual report
「Regarding quarterly results, lower production volumes at the plant led to higher production costs, and profitability deteriorated on projects in hand. Meanwhile, at the construction sites, progress on projects contributing to profitability advanced, resulting in revenue from completed construction contracts of ¥3,260 million, up ¥100 million, or 3.2%, year on year, and operating income of ¥130 million, up ¥70 million, or 136.7%.」
Higher production costs resulting from lower production volumes and deteriorating profitability on projects in hand continued. Meanwhile, progress on construction-site projects contributing to profitability resulted in operating income increasing 136.7% year on year. - FY2017-Q3MaterialisedAnnual report
「Regarding quarterly results, plant operations remained generally stable against a backdrop of a substantial backlog of projects carried over from the previous year. However, production volumes for newly awarded projects declined, while the profitability of existing projects also deteriorated. Revenue from completed construction contracts was ¥10,020 million, down ¥2,040 million, or 16.9%, year on year, and operating income was ¥450 million, down ¥610 million, or 57.6%.」
While plant operations remained generally stable, production volumes for newly awarded projects declined and the profitability of existing projects deteriorated, resulting in declines in revenue from completed construction contracts and operating income. - FY2017-Q2MaterialisedAnnual report
「Regarding quarterly results, plant operations progressed relatively smoothly, but were not at the high level seen in the same quarter of the previous year. In addition, profitability deteriorated on some large-scale projects. Revenue from completed construction contracts was ¥6,370 million, down ¥1,630 million, or 20.5%, year on year, and operating income was ¥240 million, down ¥400 million, or 62.1%.」
The deterioration in profitability on large-scale projects also occurred during the six-month cumulative period ended Q2, becoming a factor behind the declines in revenue from completed construction contracts and operating income in the steel structure manufacturing business. - FY2017-Q1Deterioration in profitability on large-scale projectsAnnual report
「Regarding quarterly results, plant operations progressed smoothly, but the deterioration in profitability on some large-scale projects had an impact. Revenue from completed construction contracts was ¥3,160 million, down ¥340 million, or 9.8%, year on year, and operating income was ¥50 million, down ¥110 million, or 67.5%.」
Within the thread on securing order profitability, the deterioration in profitability on some large-scale projects emerged in the results and became a factor behind the declines in revenue from completed construction contracts and operating income. - FY2016First statedAnnual report
「Our focus on expressway operators and improved ability to make technical proposals aimed at winning large-scale maintenance projects produced a certain level of results. Including the acquisition of design changes, order intake in the bridge division totaled ¥17,210 million, up ¥1,270 million, or 8.0%, year on year.」
For bridges, the company described winning technical proposals and design changes, while for steel structures it described selective order acceptance taking plant operating capacity into account, indicating management focused not only on order volume but also on profitability and utilization.