Struggling condominium builder Daikyo Inc. said Thursday it fell into the red in the business year that ended March 31, affected by its withdrawal from noncore businesses under a state-backed reconstruction plan.
In a consolidated earnings report for fiscal 2004, Daikyo posted an operating loss of 20.48 billion yen, a pretax loss of 26.03 billion yen and a net loss of 101.62 billion yen. In fiscal 2003, on a consolidated basis, the company had an operating profit of 18.06 billion yen, a pretax profit of 12.71 billion yen and a net profit of 6.64 billion yen.
Its group sales in fiscal 2004 rose 32.3 percent from the previous year to 450.65 billion yen, due mainly to robust condominium construction.
The group's per-share loss came to 543.43 yen compared with a profit of 29.45 yen the preceding year. Daikyo will continue to skip dividend payments for the year to March 31.
Daikyo incurred extraordinary losses stemming from sales of real estate and other assets in connection with its withdrawal from such noncore businesses as golf courses and hotels.
To help cover the losses, Daikyo received financial support from its creditor banks with the help of the state-backed Industrial Revitalization Corp. of Japan. Daikyo also implemented a 99 percent cut in its capital.
In addition, leasing company Orix Corp. was selected to sponsor Daikyo's reconstruction and become its largest shareholder by purchasing a 44 percent stake in March.