Japanese Contractors Bracing for Hit from Coronavirus

Economy

Tokyo, May 14 (Jiji Press)--Major Japanese general contractors are bracing for a hit from the coronavirus pandemic to earnings for the year through March 2021.

Kajima Corp. <1812> said Thursday that it forecasts a 7.0 pct fall in consolidated revenue from the previous year, the first drop in 10 years. Its net profit is projected to fall 22.5 pct to 80 billion yen.

"The impact from the coronavirus is significant," Kajima Executive Officer Hirotaka Takabayashi said. Construction work in Singapore has been suspended for some three months amid the pandemic, he said.

He said that the company sees only a minor impact from domestic construction work suspension that continued until May 6.

Rival Taisei Corp. <1801> forecasts a 54.1 pct decline in net profit on a projected fall in orders amid a curb in corporate investment. The company has already faced a delay in order receipts due to the pandemic.

[Copyright The Jiji Press, Ltd.]

Jiji Press