Shimizu Swings to Operating Loss

Economy

Tokyo, May 13 (Jiji Press)--Japanese construction company Shimizu Corp. said Monday it swung to an operating loss for the first time since its 1961 stock listing in the year ended last March due mainly to higher-than-expected material costs for several large-scale projects in the country.

Shimizu posted a consolidated operating loss of 24.6 billion yen. Additional costs for meeting completion deadlines also weighed on the financial performance.

The company managed to secure a net profit thanks to proceeds from share sale, though the profit plunged 65 pct from the previous year to 17.1 billion yen. Revenue rose 3.7 pct to 2,005.5 billion yen.

Shimizu aims to assess projects more rigorously before receiving orders as material and labor costs are expected to remain elevated, Senior Managing Officer Yoshiki Higashi said in a press briefing.

For the current year, the company expects to swing back to an operating profit of 41 billion yen.

[Copyright The Jiji Press, Ltd.]

Jiji Press