Decline in Completed Construction Revenue and Profit Due to Construction Delays in the Large-Scale Properties Business
First written in FY2018-Q2. 8 of 27 entries say "Materialised", first in FY2018-Q2. Latest entry: FY2026-H1.
The whole theme swung hardest in 2024: 2 of 6 companies on the "Worse" side.
0 other companies' latest entry also says "Other".
- FY2026-H1Insufficient orders for housing equipment construction for apartment buildingsAnnual report
「Revenue from housing equipment, sanitary equipment and air-conditioning sales and construction remained below the previous year. The main reasons were that, although air-conditioning construction revenue increased as the number of public-facility renewal projects rose, revenue from housing equipment construction for apartment buildings declined due to insufficient orders.」
Although air-conditioning construction related to public-facility renewal projects increased in the large-project business, revenue from housing equipment construction for apartment buildings declined due to insufficient orders. - FY2025MitigatedAnnual report
「As a result, revenue from the large-project business was ¥14,308 million, a decrease of ¥789 million (5.2%) from the previous fiscal year, while segment profit was ¥1,140 million, an increase of ¥95 million (9.2%) from the previous fiscal year, due to an increase in highly profitable stonework and air-conditioning projects.」
Although revenue from the large-project business declined, segment profit increased 9.2% as the number of highly profitable stonework and air-conditioning projects increased, easing pressure on profit. - FY2025-H1MaterialisedAnnual report
「Revenue from housing equipment sales and construction remained below the previous year. The main reasons were a decline in sales of sanitary equipment products and a decrease in renovation work for individually owned condominium units, despite an increase in unit-bath construction for apartment buildings. Revenue from air-conditioning and sanitary equipment construction also remained below the previous year, mainly because private-sector renovation work and public-sector projects progressed more slowly than scheduled.」
Declines and project delays actually occurred in renovation work for individually owned condominium units, private-sector renovation work and public-sector projects. - FY2024-Q2MitigatedAnnual report
「Revenue from air-conditioning and sanitary equipment construction exceeded the previous year. The main reasons were the resumption of private-sector renovation work after the COVID-19 pandemic and steady progress on public-sector projects. As a result, revenue from the large-project business was ¥7,865 million, an increase of ¥1,005 million (14.7%) from the same quarter of the previous year, while segment profit was ¥602 million, an increase of ¥272 million (82.7%) from the same quarter of the previous year.」
The resumption of private-sector renovation work and steady progress on public-sector projects drove the large-project business to 14.7% higher revenue and 82.7% higher profit, further easing pressure from project progress and profitability. - FY2024-Q1MitigatedAnnual report
「As a result, revenue from the large-project business was ¥3,480 million, an increase of ¥298 million (9.4%) from the same quarter of the previous year, while segment profit was ¥164 million, an increase of ¥39 million (31.9%) from the same quarter of the previous year.」
The large-project business posted 9.4% higher revenue and 31.9% higher profit, as the resumption of private-sector renovation work and steady progress on public-sector projects eased the pressure on profit from competition for orders and project delays. - FY2023AdvancedAnnual report
「As a result, revenue from the large-project business was ¥12,540 million, an increase of ¥1,131 million (9.9%) from the previous fiscal year, while segment profit was ¥569 million, an increase of ¥177 million (45.2%) from the previous fiscal year, due mainly to the review of construction costs and other measures.」
The large-project business posted 9.9% higher revenue and 45.2% higher profit for the full year, with profit improvement driven by the review of construction costs and other measures. - FY2023-Q3Higher revenue and profit, but fewer public-sector ordersAnnual report
「Revenue from air-conditioning and sanitary equipment construction fell below the previous year. The main reason was that, although private-sector renovation work increased from the second half onward, the volume of public-sector orders declined in the second half of the previous period due to intensified bidding competition and other factors. As a result, revenue from the large-project business was ¥9,563 million, an increase of ¥1,098 million (13.0%) from the same quarter of the previous year, while segment profit was ¥475 million, an increase of ¥67 million (16.7%) from the same quarter of the previous year.」
Although the decline in public-sector orders caused revenue from air-conditioning and sanitary equipment construction to fall below the previous year, private-sector renovation work and other large-project construction drove the large-project business overall to 13.0% higher revenue and 16.7% higher profit. - FY2023-Q2Gross margin pressure from price competition continuedAnnual report
「As a result, revenue from the large-project business was ¥6,859 million, an increase of ¥792 million (13.1%) from the same quarter of the previous year. Segment profit was ¥329 million, down ¥129 million (28.1%) from the same quarter of the previous year, due mainly to the decline in gross margin caused by price competition in air-conditioning construction and other areas.」
Although the large-project business posted higher revenue, the decline in gross margin caused by price competition in air-conditioning construction and other areas was identified as a factor behind the decrease in profit, and segment profit fell 28.1%. - FY2023-Q1WorsenedAnnual report
「Revenue from air-conditioning and sanitary equipment construction fell significantly below the previous year. The main reason was a decrease in the volume of public-sector orders in the second half of the previous period due to intensified bidding competition and other factors. As a result, revenue from the large-project business was ¥3,182 million, an increase of ¥617 million (24.1%) from the same quarter of the previous year, while segment profit was ¥124 million, a decrease of ¥59 million (32.1%) from the same quarter of the previous year.」
The decline in public-sector orders and intensified bidding competition caused revenue from air-conditioning and sanitary equipment construction to fall significantly, while segment profit in the large-project business declined 32.1%. - FY2022Lower order value due to competition for ordersAnnual report
「Revenue from the large-project business was ¥11,409 million, an increase of ¥1,768 million (18.3%) from the previous fiscal year. Segment profit was ¥392 million, down ¥435 million from the previous fiscal year (a 52.6% decrease), as lower order values resulting from competition for orders became pronounced in all markets.」
Although revenue from the large-project business increased, lower order values resulting from competition for orders became pronounced in all markets, causing segment profit to decline 52.6%. - FY2022-Q3WorsenedAnnual report
「As a result, revenue in the major projects business was ¥8.464 billion, up ¥1.191 billion, or 16.4%, from the same quarter of the previous year. Segment profit was ¥407 million, down ¥339 million, or 45.5%, as order prices fell significantly across all markets amid intensified competition for orders.」
Order prices fell significantly across all markets amid intensified competition for orders, resulting in a 45.5% year-on-year decline in segment profit in the major projects business. - FY2022-Q2WorsenedAnnual report
「Segment profit in the major projects business was ¥459 million, down ¥175 million, or 27.7%, from the same quarter of the previous year, as order prices fell significantly across all markets amid intensified competition for orders.」
Order prices fell significantly across all markets amid intensified competition for orders, resulting in a 27.7% year-on-year decline in segment profit in the major projects business. - FY2022-Q1MaterialisedAnnual report
「The main reasons for the decline in profit were a decrease in high-margin projects, which reduced gross profit in the major projects business, and lower gross profit due to declining order prices amid intensifying competition, despite efforts to strengthen cost control.」
The major projects business experienced an actual decline in high-margin projects and lower order prices due to intensifying competition, resulting in lower gross profit. - FY2021-Q3RestatedAnnual report
「Revenue from air-conditioning and sanitary equipment construction exceeded the previous year's level. The main reason was that, despite postponements of private-sector renovation work due to the impact of COVID-19, construction-progress revenue from government agency projects ordered in the previous fiscal year remained firm.」
While postponements of private-sector renovation work continued, construction progress on government agency projects remained smooth, and differences in impact by project continued. - FY2021-Q2Continued postponement of private-sector construction and progress on government agency projectsAnnual report
「Revenue from air-conditioning and sanitary equipment construction exceeded the previous year's level. The main reason was that, despite postponements of private-sector renovation work due to the impact of COVID-19, construction-progress revenue from government agency projects ordered in the previous fiscal year remained firm.」
While postponements of private-sector renovation work continued, construction-progress revenue from government agency projects ordered in the previous fiscal year remained firm, resulting in differing impacts by project. - FY2021-Q1MaterialisedAnnual report
「The main reasons for the decline in net sales were the decrease in demand for Olympic-related facilities, which had continued through the previous period, and a decrease in completion revenue from the large-project business due to extensions to construction periods for commercial facilities and other factors resulting from the impact of COVID-19.」
The impact of COVID-19 led to extensions of construction periods and other effects related to commercial facilities, causing completed construction revenue in the major projects business to decline 16.6% year on year and segment profit to decline 10.5%. - FY2020MaterialisedAnnual report
「Revenue from air-conditioning and sanitary equipment construction was below the previous year's level. The main reasons were that, although construction on government agency projects ordered in the previous fiscal year was completed smoothly through the first half, from April onward construction progress was delayed due to COVID-19 and orders for new small-scale construction projects were postponed.」
COVID-19 actually caused delays in the progress of government agency construction projects and postponements of orders for new small-scale construction projects. - FY2020-Q3MaterialisedAnnual report
「Revenue from air-conditioning and sanitary equipment construction was below the previous year's level. The main reasons were that, although construction on government agency projects ordered in the previous fiscal year was completed smoothly through the interim period, from April onward construction and orders were postponed due to the impact of COVID-19, resulting in completed construction revenue not being recognized.」
While government agency projects were completed smoothly through the interim period, construction and orders were postponed from April onward due to the impact of COVID-19, and completed construction revenue was not recognized. - FY2020-Q2MitigatedAnnual report
「As a result, revenue in the major projects business was ¥5.789 billion, up ¥835 million, or 16.9%, from the same quarter of the previous year. Segment profit was ¥681 million, up ¥249 million, or 57.7%.」
The major projects business reported a 16.9% increase in revenue and a 57.7% increase in profit, indicating that the impact of the construction delays and unprofitable projects that arose in the previous fiscal year had eased. - FY2020-Q1MitigatedAnnual report
「As a result, revenue in the major projects business was ¥2.751 billion, up ¥475 million, or 20.9%, from the same quarter of the previous year. Segment profit was ¥333 million, up ¥185 million, or 125.9%.」
The major projects business reported a 20.9% year-on-year increase in revenue and a 125.9% increase in profit, indicating that the impact of the construction delays and unprofitable projects that arose in the previous fiscal year had eased. - FY2019MitigatedAnnual report
「As a result, revenue was ¥8.741 billion, up 32.4% from the previous fiscal year, and segment profit was ¥566 million, up 51.9%.」
Despite the profit pressure from construction delays and unprofitable projects in the previous fiscal year, the major projects business posted higher revenue and profit for the full year, indicating that the impact of these risks had eased. - FY2019-Q3RestatedAnnual report
「Tile construction progressed smoothly on projects in hand for hotels, apartment buildings and station buildings. In housing equipment construction, new construction work on large apartment buildings and hotels progressed smoothly, while orders for apartment renovation work increased. In air-conditioning and sanitary equipment construction, large orders from government agencies remained firm, and projects in hand also progressed smoothly.」
The company reconfirmed that, in contrast to the construction delays and profit pressure from unprofitable projects in the major projects business in the previous fiscal year, projects in hand and large orders were progressing smoothly. - FY2019-Q2MitigatedAnnual report
「Tile construction progressed smoothly on projects in hand for hotels, apartment buildings and station buildings. We were also able to increase orders by establishing a construction framework for large ceramic panels. In housing equipment construction, new construction work on large apartment buildings and hotels progressed smoothly, while orders for apartment renovation work increased. In air-conditioning and sanitary equipment construction, large orders from government agencies remained firm, and projects in hand also progressed smoothly.」
In contrast to the construction delays and profit pressure from unprofitable projects in the major projects business in the previous fiscal year, projects in hand and large orders progressed smoothly, and segment profit in the business increased 144.7% year on year. - FY2019-Q1MitigatedAnnual report
「Against this business backdrop, tile construction progressed smoothly on projects in hand. In housing equipment construction, work on large apartment buildings and hotels progressed smoothly, while orders for renovation work increased. In air-conditioning and sanitary equipment construction, orders from government agencies remained firm.」
In contrast to the construction delays and profit pressure from unprofitable projects in the major projects business in the previous fiscal year, projects in hand and large-scale projects progressed smoothly, and profit in the business recovered. - FY2018MaterialisedAnnual report
「Although tile construction progressed smoothly, revenue fell below the previous fiscal year's level due in part to fewer new condominium starts and insufficient order volumes carried over from the previous fiscal year. The occurrence of multiple unprofitable projects also put pressure on earnings.」
Multiple unprofitable projects arose, and segment profit in the major projects business declined 36.8% from the previous fiscal year. - FY2018-Q3MaterialisedAnnual report
「The decline in profit was attributable mainly to lower gross profit margins caused by large-scale unprofitable sites in the major projects business, as well as higher personnel costs and expenses associated with the renewal of operating systems.」
Multiple large-scale unprofitable construction projects arose in the major projects business, leading to lower gross profit margins and a 49.6% year-on-year decline in segment profit. - FY2018-Q2MaterialisedAnnual report
「In air-conditioning and sanitary equipment construction, construction progress on public works and other projects ordered in the previous fiscal year or earlier was slower than expected, resulting in lower revenue recognized for completed construction on projects subject to the percentage-of-completion method. As a result, revenue in the major projects business was ¥3.269 billion, down ¥5 million, or 0.2%, from the same quarter of the previous year. Segment profit was ¥176 million, down ¥165 million, or 48.3%, as progress was slow on projects with high gross profit margins.」
Construction progress on public works and other projects was slower than expected, and the decline in progress on high-margin projects actually led to lower revenue and segment profit in the major projects business.