Ailing construction firm Kumagai Gumi Co. fell into the red in fiscal 2002. The general contractor blamed poor sales and massive extraordinary losses, including appraisal losses on its fixed assets.
In its consolidated earnings report released Monday, Kumagai Gumi said it posted a net loss of 295.90 billion yen, in a reversal from a profit of 2.55 billion yen the previous year.
The company posted a pretax loss of 470 million yen against a profit of 6.42 billion yen the previous year, with sales falling 29.2 percent to 522.34 billion yen amid smaller spending for public works projects and weak demand both for private housing and for corporate buildings.
It booked 280.10 billion yen in extraordinary losses, up from 23.16 billion yen in the previous year. The special losses for the reporting year included 74.92 billion yen worth of valuation losses on its fixed assets.