Improving Profitability and Controlling Selling, General and Administrative Expenses
First written in FY2016. 21 of 48 entries say "Advanced", first in FY2017-Q1. Latest entry: 2026-08-07.
The whole theme swung hardest in 2017: 3 of 20 companies on the "Worse" side.
21 other companies' latest entry also says "Advanced".
- FY2026WorsenedAnnual report
「The operating loss for the fiscal year was ¥19.0 billion, compared with operating profit of ¥2.5 billion in the previous fiscal year, as the decline in gross profit on completed construction contracts was compounded by higher SG&A expenses.」
Lower gross profit on completed construction contracts and higher SG&A expenses resulted in a shift from operating profit of ¥2.5 billion to an operating loss of ¥19.0 billion. Profitability deteriorated substantially. - FY2026-H1WorsenedAnnual report
「However, deterioration in the results of the gas-fired power generation project in Brazil and domestic biomass power generation projects resulted in an operating loss of ¥4.2 billion, compared with operating profit of ¥2.0 billion in the same interim period of the previous year; an ordinary loss of ¥1.9 billion, compared with ordinary profit of ¥3.2 billion; and an interim net loss attributable to owners of the parent after tax expenses of ¥3.0 billion, compared with interim net profit attributable to owners of the parent of ¥1.7 billion. Revenue and profit both declined year on year.」
Deterioration in the results of the gas-fired power generation project in Brazil and domestic biomass power generation projects resulted in a shift from operating profit of ¥2.0 billion to an operating loss of ¥4.2 billion and from interim net profit attributable to owners of the parent of ¥1.7 billion to an interim net loss of ¥3.0 billion. - FY2025WorsenedAnnual report
「Gross profit on completed construction contracts for the fiscal year was ¥26.0 billion, down ¥2.3 billion, or 8.1%, from the previous fiscal year, due mainly to deteriorating profitability caused by additional costs incurred on a gas-fired power generation project in Brazil, domestic pharmaceutical-related plants and 2 domestic biomass power generation projects.」
Additional costs incurred on several projects worsened profitability, reducing gross profit on completed construction contracts by ¥2.3 billion, or 8.1%. Operating profit also fell 61.4% from ¥6.7 billion to ¥2.5 billion. - FY2025-H1WorsenedAnnual report
「In terms of profit, operating profit was ¥2.0 billion, down 37.4% year on year, and ordinary profit was ¥3.2 billion, down 18.6%. The company recorded extraordinary income of ¥4.1 billion as a gain on step acquisitions and extraordinary loss of ¥4.1 billion as a goodwill impairment loss. As a result, interim net profit attributable to owners of the parent after tax expenses was ¥1.7 billion, down 25.2%. Revenue increased but profit declined year on year.」
Although construction revenue increased 4.1% year on year, operating profit, ordinary profit and interim net profit attributable to owners of the parent all declined, resulting in higher revenue but lower profit. - FY2024AdvancedAnnual report
「Operating profit for the fiscal year was ¥6.7 billion, up ¥1.9 billion, or 40.9%, from the previous fiscal year, as the increase in gross profit on completed construction contracts more than offset higher SG&A expenses.」
Operating profit increased from ¥4.7 billion to ¥6.7 billion, a rise of ¥1.9 billion, or 40.9%, from the previous fiscal year. Although SG&A expenses increased, the rise in gross profit on completed construction contracts contributed to the increase. - FY2024-Q3AdvancedAnnual report
「In terms of profit, operating profit was ¥5.4 billion, up 21.8% year on year; ordinary profit was ¥5.1 billion, up 60.1%; and quarterly net profit attributable to owners of the parent after tax expenses was ¥3.0 billion, up 102.4%. Revenue and profit both increased year on year.」
During the nine-month period, operating profit, ordinary profit and quarterly net profit attributable to owners of the parent all exceeded the levels of the previous period. Operating profit was ¥5.4 billion, ordinary profit was ¥5.1 billion and quarterly net profit attributable to owners of the parent was ¥3.0 billion, indicating quantitative progress in improving profitability. - FY2024-Q2AdvancedAnnual report
「In terms of profit, operating profit was ¥3.2 billion, up 5.2% year on year; ordinary profit was ¥4.0 billion, up 59.3%; and quarterly net profit attributable to owners of the parent after tax expenses was ¥2.3 billion, up 91.3%. Revenue and profit both increased year on year.」
Operating profit, ordinary profit and quarterly net profit attributable to owners of the parent all exceeded the levels of the previous period. Operating profit was ¥3.2 billion, ordinary profit was ¥4.0 billion and quarterly net profit attributable to owners of the parent was ¥2.3 billion, demonstrating progress in improving profitability through the figures. - FY2024-Q1Lower operating profit, but higher ordinary profit and belowAnnual report
「In terms of profit, operating profit was ¥900 million, down 60.5% year on year; ordinary profit was ¥1.8 billion, up 3.6%; and quarterly net profit attributable to owners of the parent after tax expenses was ¥1.2 billion, up 21.0%. Ordinary profit and below increased year on year.」
Although operating profit fell 60.5% year on year to ¥900 million, ordinary profit was ¥1.8 billion and quarterly net profit attributable to owners of the parent was ¥1.2 billion, resulting in higher profit from ordinary profit downward year on year. Lower operating profit coexisted with higher net profit. - FY2023AdvancedAnnual report
「Operating profit for the fiscal year was ¥4.7 billion, up ¥1.8 billion, or 60.8%, from the previous fiscal year, as the increase in gross profit on completed construction contracts more than offset higher SG&A expenses.」
Although construction revenue declined 5.0%, operating profit increased from ¥2.9 billion to ¥4.7 billion due to a higher gross margin on completed construction contracts, improved profitability on several projects of overseas subsidiaries and lower SG&A expenses. - FY2023-Q3AdvancedAnnual report
「In terms of profit, operating profit was ¥4.4 billion, up 219.1% year on year; ordinary profit was ¥3.2 billion, up 76.4%; and quarterly net profit attributable to owners of the parent after tax expenses was ¥1.5 billion, up 24.3%. Revenue and profit both increased year on year.」
Operating profit rose 219.1% year on year to ¥4.4 billion, ordinary profit was ¥3.2 billion, and quarterly net profit attributable to owners of the parent was ¥1.5 billion, resulting in higher profit than in the previous period. - FY2023-Q2Higher operating profit alongside lower net profitAnnual report
「In terms of profit, operating profit was ¥3.0 billion, up 29.0% year on year; ordinary profit was ¥2.5 billion, up 10.9%; and quarterly net profit attributable to owners of the parent after tax expenses was ¥1.2 billion, down 14.7%. Revenue and profit both declined year on year.」
Operating profit and ordinary profit increased year on year, while quarterly net profit attributable to owners of the parent declined 14.7%. Improvement in operating results coexisted with a decline in net profit. - FY2023-Q1AdvancedAnnual report
「In terms of profit, operating profit was ¥2.2 billion, up 25.9% year on year; ordinary profit was ¥1.7 billion, down 3.9%; and quarterly net profit attributable to owners of the parent after tax expenses was ¥1.0 billion, up 10.7%. Revenue declined but profit increased year on year.」
Despite lower revenue, operating profit rose 25.9% year on year and quarterly net profit attributable to owners of the parent rose 10.7%. Ordinary profit declined, but the figures show improvement in operating results and net profit. - FY2022-Q3Revenue growth, operating profit decline and net income growthAnnual report
「Revenue (construction revenue) was ¥139.9 billion, up 5.2% year on year, reflecting progress on projects including several domestic biomass power plants, a petrochemical plant in Russia and a petrochemical complex in India. In terms of profit, operating profit was ¥1.4 billion, down 33.5%; ordinary profit was ¥1.8 billion, down 7.5%; and quarterly net profit attributable to owners of the parent after tax expenses was ¥1.2 billion, up 38.9%. Revenue and profit both increased year on year.」
Although construction revenue rose 5.2% year on year, operating profit and ordinary profit declined 33.5% and 7.5%, respectively, while quarterly net profit attributable to owners of the parent rose 38.9%. Lower operating profit coexisted with higher net profit. - FY2022-Q2AdvancedAnnual report
「In terms of profit, operating profit was ¥2.3 billion, up 95.5% year on year; ordinary profit was ¥2.2 billion, up 61.0%; and quarterly net profit attributable to owners of the parent after tax expenses was ¥1.4 billion, up 87.4%. Revenue and profit both increased year on year.」
As construction revenue increased, operating profit rose 95.5% year on year to ¥2.3 billion, and quarterly net profit attributable to owners of the parent rose 87.4% to ¥1.4 billion. The figures show progress in improving profitability. - FY2022-Q1AdvancedAnnual report
「In terms of profit, operating profit was ¥1.8 billion, up 224.3% year on year; ordinary profit was ¥1.8 billion, compared with ordinary profit of ¥60 million in the same period of the previous year; and quarterly net profit attributable to owners of the parent after tax expenses was ¥900 million, compared with a quarterly net loss attributable to owners of the parent of ¥200 million. Revenue and profit both increased year on year.」
Operating profit rose 224.3% year on year to ¥1.8 billion, while quarterly net results attributable to owners of the parent changed from a loss of ¥200 million in the previous period to profit of ¥900 million. - FY2021AdvancedAnnual report
「Although lower construction revenue had a negative effect on profit, improvements in the results of several projects undertaken by overseas subsidiaries and control of proposal costs included in SG&A expenses resulted in operating profit of ¥1.6 billion, ¥1.1 billion above the initial forecast of ¥500 million.」
Despite lower construction revenue, operating profit was ¥1.6 billion, ¥1.1 billion above the initial forecast of ¥500 million, due to improved results on several projects of overseas subsidiaries and lower proposal costs. - FY2021-Q3Higher operating and ordinary profit, but lower quarterly net profit attributable to owners of the parentAnnual report
「In terms of profit, operating profit was ¥2.1 billion, up 14.0% year on year; ordinary profit was ¥1.9 billion, up 53.5%; and quarterly net profit attributable to owners of the parent after tax expenses was ¥800 million, down 48.9%. Revenue and profit both declined year on year.」
Operating profit and ordinary profit rose 14.0% and 53.5% year on year, respectively, while quarterly net profit attributable to owners of the parent declined 48.9%. Improvement in operating results coexisted with a decline in net profit. - FY2021-Q2WorsenedAnnual report
「In terms of profit, operating profit was ¥1.2 billion, down 57.7% year on year; ordinary profit was ¥1.4 billion, down 21.7%; and quarterly net profit attributable to owners of the parent after tax expenses was ¥700 million, down 71.4%. Revenue and profit both declined year on year.」
Construction revenue fell 20.4% year on year, operating profit was ¥1.2 billion, down 57.7%, and quarterly net profit attributable to owners of the parent was ¥700 million, down 71.4%, indicating weaker profitability than in the previous period. - FY2021-Q1WorsenedAnnual report
「In terms of profit, operating profit was ¥500 million, down 71.7% year on year; ordinary profit was ¥60 million, down 96.0%; and quarterly net loss attributable to owners of the parent after tax expenses was ¥200 million, compared with quarterly net profit attributable to owners of the parent of ¥2.5 billion in the same period of the previous year. Revenue and profit both declined year on year.」
Operating profit fell 71.7% year on year to ¥500 million, ordinary profit declined to ¥60 million, and quarterly net results attributable to owners of the parent changed from net profit of ¥2.5 billion to a net loss of ¥200 million. Profitability deteriorated from the previous period. - FY2020AdvancedAnnual report
「Operating profit for the fiscal year was ¥1.8 billion, compared with an operating loss of ¥5.6 billion in the previous fiscal year, as a result of the aforementioned increase in gross profit on completed construction contracts and efforts to reduce SG&A expenses.」
Higher gross profit on completed construction contracts and lower SG&A expenses resulted in a shift from an operating loss of ¥5.6 billion to operating profit of ¥1.8 billion. - FY2020-Q3AdvancedAnnual report
「In terms of profit, operating profit was ¥1.8 billion, up 222.7% year on year; ordinary profit was ¥1.2 billion, down 66.2%; and quarterly net profit attributable to owners of the parent after tax expenses was ¥1.7 billion, up 18.8%, due in part to an ¥1.8 billion gain on the sale of equity investments recorded as extraordinary income. Revenue declined but profit increased year on year.」
Despite lower revenue, operating profit rose 222.7% year on year to ¥1.8 billion, indicating improved operating profitability from the previous period. Quarterly net profit attributable to owners of the parent was also ¥1.7 billion, although the increase in profit was supported by extraordinary income, including an ¥1.8 billion gain on the sale of equity investments. - FY2020-Q2AdvancedAnnual report
「In terms of profit, operating profit was ¥2.8 billion, up 252.5% year on year; ordinary profit was ¥1.8 billion, down 41.5%; and quarterly net profit attributable to owners of the parent after tax expenses was ¥2.7 billion, up 66.9%, due in part to an ¥1.8 billion gain on the sale of equity investments recorded as extraordinary income. Revenue declined but profit increased year on year.」
Despite lower revenue, operating profit rose 252.5% year on year to ¥2.8 billion, indicating improved operating profitability from the previous period. Ordinary profit declined, however, and the ¥1.8 billion gain on the sale of equity investments contributed to the increase in quarterly net profit attributable to owners of the parent. - FY2020-Q1AdvancedAnnual report
「In terms of profit, operating profit was ¥1.9 billion, up 4.7% year on year; ordinary profit was ¥1.5 billion, down 36.6%; and quarterly net profit attributable to owners of the parent after tax expenses was ¥2.5 billion, up 82.7%, due in part to an ¥1.8 billion gain on the sale of equity investments recorded as extraordinary income. Revenue declined but profit increased year on year.」
Although construction revenue declined, operating profit rose 4.7% year on year to ¥1.9 billion, while SG&A expenses fell from ¥3.961 billion to ¥3.845 billion. Ordinary profit declined, however, and the ¥1.8 billion gain on the sale of equity investments contributed to the increase in quarterly net profit attributable to owners of the parent. - FY2019AdvancedAnnual report
「Although SG&A expenses were reduced through more efficient use of proposal costs, company-wide expense reductions and cuts in executive compensation, the increase in construction costs for the aforementioned U.S.-bound ethylene production facility project resulted in a loss of ¥5.6 billion, compared with an operating loss of ¥32.9 billion in the previous fiscal year.」
The operating loss narrowed from ¥32.9 billion to ¥5.6 billion, while gross profit on completed construction contracts changed from a loss of ¥12.5 billion to a profit of ¥10.6 billion. However, an operating loss and a net loss remained. - FY2019-Q3AdvancedAnnual report
「In terms of profit, operating profit was ¥500 million, compared with an operating loss of ¥23.0 billion in the same period of the previous year; ordinary profit was ¥3.7 billion, compared with an ordinary loss of ¥20.9 billion; and quarterly net profit attributable to owners of the parent after tax expenses was ¥1.4 billion, compared with a quarterly net loss attributable to owners of the parent of ¥23.7 billion. Revenue declined but profit increased year on year.」
Operating results changed from an operating loss of ¥23.0 billion in the same period of the previous year to operating profit of ¥500 million, ordinary results changed from an ordinary loss of ¥20.9 billion to ordinary profit of ¥3.7 billion, and quarterly net results attributable to owners of the parent changed from a quarterly net loss of ¥23.7 billion to quarterly net profit of ¥1.4 billion. The ¥2.5 billion equity-method investment gain from improved results at equity-method affiliates also contributed to ordinary profit. - FY2019-Q2WorsenedAnnual report
「In terms of profit, operating profit was ¥800 million, down 59.2% year on year, reflecting the effect of lower revenue and higher costs of completed construction contracts. Ordinary profit was ¥3.0 billion, up 14.7%, mainly because the company recorded ¥1.7 billion in equity-method investment gain as the results of equity-method affiliates improved. Quarterly net profit attributable to owners of the parent after tax expenses was ¥1.6 billion, up 38.9%. Revenue declined but profit increased year on year.」
Although equity-method investment gains increased ordinary profit and quarterly net profit attributable to owners of the parent, operating profit fell to ¥800 million, down 59.2% year on year, because of lower revenue and higher costs of completed construction contracts. Core operating profitability deteriorated from the previous report of higher profit. - FY2019-Q1AdvancedAnnual report
「In terms of profit, operating profit was ¥1.9 billion, up 219.6% year on year; ordinary profit was ¥2.4 billion, up 25.9%; and quarterly net profit attributable to owners of the parent after tax expenses was ¥1.3 billion, up 31.6%. Revenue declined but profit increased year on year.」
Although construction revenue declined year on year, operating profit was ¥1.9 billion, ordinary profit was ¥2.4 billion and quarterly net profit attributable to owners of the parent was ¥1.3 billion, all above the levels of the same period of the previous year. SG&A expenses also fell from ¥5.121 billion in the same period of the previous year to ¥3.961 billion. - FY2018WorsenedAnnual report
「Revenue (construction revenue) was ¥335.6 billion, down 22.3% year on year, reflecting progress on projects including the U.S.-bound ethylene production facility, the Malaysia-bound ethylene complex, the Turkmenistan-bound gas chemical complex, the Thailand-bound natural-gas-fired cogeneration power plant and the Setouchi mega-solar project. Operating results deteriorated because of a substantial increase in construction costs for the U.S.-bound ethylene production facility project. Despite company-wide expense reductions and cuts in executive compensation, higher SG&A expenses due to more active proposal activities resulted in an operating loss of ¥32.9 billion, compared with an operating loss of ¥2.0 billion in the previous fiscal year.」
Although the company implemented company-wide expense reductions and cuts in executive compensation, the operating loss widened to ¥32.9 billion because of higher construction costs for the U.S.-bound project and higher SG&A expenses related to proposal activities. - FY2018-Q3RaisedAnnual report
「③ Thoroughly reduce fixed costs, SG&A expenses and project expenses.」
In addition to controlling SG&A expenses as before, the company has expanded the scope of targeted reductions to fixed costs and project expenses and plans to pursue these reductions thoroughly. However, the cumulative operating loss for the quarter was ¥23.0 billion, indicating deteriorating profitability. - FY2018-Q2WorsenedAnnual report
「Operating profit was ¥1.9 billion, down 62.5% year on year, due to lower gross profit resulting from lower revenue than in the same quarter of the previous year, as well as higher selling, general and administrative expenses, including proposal costs, to strengthen order-winning activities.」
Operating profit fell 62.5% year on year to ¥1.9 billion. Lower gross profit and higher SG&A expenses associated with stronger order-winning activities resulted in weaker profitability. - FY2018-Q1WorsenedAnnual report
「In terms of profit, operating profit was ¥500 million, down 83.2% year on year; ordinary profit was ¥1.9 billion, down 62.5%; and quarterly net profit attributable to owners of the parent after tax expenses was ¥1.0 billion, down 43.4%. Revenue and profit both declined year on year.」
In the first quarter, operating profit fell 83.2% year on year to ¥500 million, while ordinary profit and quarterly net profit attributable to owners of the parent also declined. Profitability deteriorated. - FY2017WorsenedAnnual report
「Operating results deteriorated in the U.S.-bound ethylene production facility project because of a substantial increase in construction costs, resulting, regrettably, in an operating loss of ¥2.0 billion, compared with operating profit of ¥11.0 billion in the previous fiscal year.」
Although SG&A expenses fell by ¥1.4 billion year on year, gross profit on completed construction contracts deteriorated by ¥14.5 billion because of higher construction costs for the U.S.-bound project, resulting in a shift from operating profit to an operating loss of ¥2.0 billion. - FY2017-Q3Higher revenue but lower profit, with a shift to an operating lossAnnual report
「Against this backdrop, results for the nine months ended Q3 were as follows: orders received of ¥92.3 billion, down 73.6% year on year; revenue (construction revenue) of ¥304.0 billion, up 38.9%; an operating loss of ¥1.5 billion, compared with operating profit of ¥4.7 billion in the same period of the previous year; ordinary profit of ¥1.4 billion, down 70.4%; and a quarterly net loss attributable to owners of the parent of ¥1.0 billion, compared with quarterly net profit attributable to owners of the parent of ¥2.6 billion in the same period of the previous year. Revenue increased but profit declined year on year.」
Although revenue increased, higher construction costs resulted in a shift from operating profit to an operating loss, and a quarterly net loss attributable to owners of the parent was also recorded. The results show that controlling SG&A alone has not been sufficient to improve profitability. - FY2017-Q2AdvancedAnnual report
「Although construction costs increased for the ethylene production facility for the United States, operating income reached ¥5.3 billion, up 20.4% year on year, due to the effect of higher revenue and reductions in selling, general and administrative expenses.」
Although construction costs for the U.S.-bound ethylene production facility increased, operating profit rose 20.4% year on year, driven by higher revenue and lower selling, general and administrative expenses. The effects of improved profitability and SG&A control are reflected in the figures. - FY2017-Q1AdvancedAnnual report
「Gross profit on completed construction contracts 6,342 7,659 Selling, general and administrative expenses 5,089 4,108 Operating income 1,252 3,550」
Gross profit on completed construction contracts increased and selling, general and administrative expenses decreased year on year, resulting in higher operating income. Measurable progress in improving profitability is shown. - FY2016First statedAnnual report
「Our Group will strengthen measures to increase gross profit on sales (completed construction contracts), continue working to control selling, general and administrative expenses, and pursue initiatives to improve profitability.」
The company plans to continue improving profitability by combining higher gross profit on completed construction contracts with lower selling, general and administrative expenses.