Deterioration in the steel business's profitability due to orders for unprofitable construction projects
First written in FY2019-Q3. 2 of 4 entries say "Mitigated", first in FY2020. Latest entry: FY2021.
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- FY2021MitigatedAnnual report
「The provision for losses on construction contracts included in cost of sales was nil for the current consolidated fiscal year.」
The ¥286 million provision for losses on construction contracts recorded in the previous fiscal year was not recorded in the current fiscal year, reducing the accounting impact of unprofitable construction projects. - FY2020MitigatedAnnual report
「The provision for losses on construction contracts included in cost of sales was negative ¥286 million for the current consolidated fiscal year.」
The ¥286 million provision for losses on construction contracts recorded in the previous fiscal year was reversed in the current fiscal year, reducing the year-end balance to zero. This indicates that the accounting impact of unprofitable construction project risk had diminished. - FY2019MaterialisedAnnual report
「Operating profit was ¥2,208 million, down 14.3% year on year, due to temporary costs associated with relocating the Kanagawa Branch and accepting unprofitable construction projects, among other factors.」
The acceptance of unprofitable construction projects emerged as a factor behind the decline in operating profit in the steel business on a full-year basis. A provision for losses on construction contracts of ¥286 million was also recorded. - FY2019-Q3First statedAnnual report
「Operating profit was ¥1,694 million, down 12.8% year on year, due to temporary costs associated with relocating the Kanagawa Branch and accepting unprofitable construction projects, among other factors.」
The acceptance of unprofitable construction projects was explicitly identified for the first time in the quarterly report as a factor behind the decline in operating profit in the steel business.