Strengthening the Earnings Base of a Construction Equipment Subsidiary and Optimizing the Equipment Fleet

「In the construction machinery business, net sales were ¥3,824 million, up 11.0% year on year, and ordinary profit was ¥130 million, up 20.8%, mainly due to increased sales of used assets resulting from initiatives to optimize owned assets.」

「In the construction equipment business, we focused on improving profitability by changing the asset composition. In addition, the Company, レンタルシステム㈱ (a consolidated subsidiary) and Mizuho Leasing Company,Limited entered into a capital and business alliance agreement and began expanding their business areas by strengthening cooperation among the 3 companies. As a result of these and other initiatives, net sales were ¥14,765 million, up 1.3% year on year, and ordinary profit was ¥391 million, up 20.2%.」

「In the construction equipment business, higher profitability resulting from changes in the asset composition contributed to net sales of ¥7,219 million, up 0.2% year on year, and ordinary profit of ¥164 million, up 9.0%.」

「In the construction equipment business, we will rebuild our earnings base by expanding the lineup of new products such as HelioMove® (a lift platform for interior contractors) and BROKK® (an unmanned construction robot), as well as highly profitable products, while further reviewing the composition of assets held for rental and strengthening collaboration and cooperation among the Company, the JFE Group and Mizuho Leasing Company,Limited.」

「In the construction machinery business, net sales increased 0.2% from the previous interim consolidated fiscal period to ¥7,208 million. However, ordinary income declined 39.8% to ¥150 million, as improved earnings from leased equipment were offset by a decrease in used-equipment sales and other factors.」

「In the construction machinery business, net sales increased 3.5% year on year to ¥14,747 million, due to increased asset sales as the review of assets held progressed following the integration of the 5 former subsidiaries, as well as efforts to strengthen the range of new products and focus on expanding sales. Ordinary income increased 105.4% to ¥422 million, additionally reflecting the absence of the impact of the change in the applicable standard for retirement benefit accounting that had affected the previous year.」

「In the construction machinery business, net sales increased 3.9% year on year to ¥7,197 million and ordinary income increased 23.8% to ¥250 million, reflecting increased sales of assets resulting from the active replacement of assets held and higher selling prices.」

「In the construction machinery business, net sales increased 4.3% year on year to ¥3,430 million, and ordinary income increased 110.8% to ¥134 million.」

「We worked to enhance overall competitiveness in the heavy temporary-works and construction machinery businesses, including by introducing new models, and achieved results that contributed to expansion into adjacent fields. In the construction machinery business, net sales increased 5.2% year on year to ¥10,769 million, and ordinary income increased 10.1% to ¥330 million.」

「In the construction machinery business, we strengthened order-taking activities through cooperation between us and the construction machinery subsidiaries, as well as initiatives in the civil engineering field. We also decided to integrate the 5 construction machinery subsidiaries and are working to realize the integration benefits at an early stage.」

「By integrating the 5 rental-system group companies, we will strengthen our community-based sales operations while concentrating management resources to expand our network of locations. We will also review the composition of our equipment fleet and introduce new models that meet social needs. Through a streamlined operating structure capable of resolving issues quickly, we have decided to deepen cooperation with GECOSS and the JFE Group and further contribute to society and expand the business.」

「The Construction Machinery Division established last year and the 5 construction machinery subsidiaries will work as one to develop new demand, beginning with the civil engineering field, where solid demand is expected, and will strengthen the organization and launch new products accordingly. We will also continue working to expand our business areas through our own efforts and alliances. In addition, we will improve the productivity of administrative operations and enhance profitability by refreshing construction machinery-related systems and taking other measures.」

「With the aim of strengthening the construction machinery business as a unified group, we established the Construction Machinery Division effective 1 April.」

「In the construction machinery business, net sales increased 6.2% year on year to ¥3,440 million, while ordinary income declined 10.1% to ¥272 million, due in part to the increased depreciation burden resulting from purchases of assets for rental.」

「In the construction machinery business, net sales increased to ¥14,392 million, up 8.7% year on year, on the back of solid demand. However, ordinary income fell 2.5% to ¥1,388 million, due in part to the impact of increased purchases of assets for rental.」

「We will open locations in areas where the construction machinery subsidiaries do not currently have a presence and expand our business area. We will also broaden our model lineup in line with the expansion of the underground construction and infrastructure maintenance businesses, thereby expanding the fields we can serve.」

「Through the merger, we will share sales information and make effective use of the construction machinery held by the group, thereby improving the efficiency of group management and strengthening competitiveness.」

「We will optimize the equipment fleet and strengthen the earnings base.」