The combined unconsolidated operating profits at Japan's 52 major construction companies declined 29.9 percent to 100.6 billion yen in the first half of fiscal 2000, the Research Institute of Construction and Economy said Friday.
The think tank also said the gap between large and smaller contractors widened. The combined operating profits of the five biggest contractors jumped 25.5 percent, but those of smaller contractors suffered double- to triple-digit declines.
The 52 contractors' interest-bearing liabilities declined 3.6 percent to 8.18 trillion yen from the end of March to the end of September as banks continued to waive massive amounts of the firms' loan liabilities.
Due to the banks' aid, the contractors were able to assist their subsidiaries and affiliates, and the value of debts the contractors guarantee decreased 3.5 percent to 1.7 trillion yen.
But there is still a long way to go before good financial condition is restored in the industry, the think tank said. Some midsize contractors, for example, are believed to have deliberately classified liquid assets as fixed assets to avoid being forced to dispose of losses on them.
In addition, figures show that the 52 firms' combined unconsolidated revenues increased 3.4 percent from a year earlier to 6.19 trillion yen, but the increase came mainly because more companies are counting revenues on a step-by-step basis as construction work progresses. In the past, construction companies booked revenues only after completing projects.