Four major construction companies reported mixed group earnings results Friday for the fiscal first half of 2003.
The results of Kajima Corp., Taisei Corp., Shimizu Corp. and Obayashi Corp. showed that higher share prices helped improve the bottom lines of all but Taisei, allowing the other three to book smaller evaluation losses on equity holdings.
Kajima, the nation's biggest general contractor, said its group net profit soared 145.9 percent to 6.08 billion yen due to cost reductions and smaller evaluation losses on equity holdings. Kajima booked 270 million yen in such losses, down from 1.89 billion yen a year earlier.
Kajima's pretax profit jumped 142 percent to 12.12 billion yen on a 36 percent rise in operating profit to 17.01 billion yen on decreased marketing and administrative expenses.
Sales by the contractor fell 4.8 percent to 783.37 billion yen, reflecting a decline in public works projects.
Taisei reported a 48.4 percent decline in net profit to 1.65 billion yen, mainly due to increased loan-loss charges and larger evaluation losses on equity holdings.
Pretax profit by Taisei climbed 113.9 percent to 7.5 billion yen on a 65.1 percent jump in operating profit to 11.37 billion yen, thanks to improved earnings contributions from subsidiaries.
Taisei's sales edged up 0.6 percent to 614.75 billion yen.
Shimizu said its net profit rose 34.8 percent to 1.66 billion yen as a stock market recovery squeezed evaluation losses on equity holdings to 325 million yen from 1.47 billion yen a year earlier.
Pretax profit at Shimizu fell 1.2 percent to 5.83 billion yen due to decreased nonoperating income. Operating profit rose 14.9 percent to 9.66 billion yen due to cost cuts.
Shimizu reported an 18.7 percent rise in sales to 589.14 billion yen.