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August 31, 2004
Interim Closing of Accounts for Fiscal
2004 and Performance Forecasts for Current Term
During this interim period, on the back of the underlying tone
of recovery in the world economy, the Japanese economy showed
positive signs of a private sector-led and external demand-led
recovery, with strong exports, steady growth in domestic private-sector
capital investment and a dramatic improvement in corporate profits,
especially in the manufacturing industry.
In the construction business, the core business of the Takenaka
Group, although private-sector capital investment has started
to recover slightly, public-sector investment has continued
to decline with the cuts in government expenditure, which has
prevented private-sector investment from pushing up construction
demand overall, and the business environment remains difficult.
1. Overview of Interim Closing of Accounts
for FY2004
(1) Takenaka Group
In line with the consolidation policy of consolidating all subsidiaries
and affiliates, a total of 68 were consolidated for the half
year, 45 under the consolidation method and 23 under the equity
method.
Consolidated performance for this half year sales of 575.3 billion
yen (up 16.6 percent from the same period last year), ordinary
profit of 20.4 billion yen (up 129.4 percent), and a profit
for the current term of 11.3 billion yen (up 408.3 percent).
In this interim period, an improvement in the profitability
of completed work has increased gross profit on sales, which
resulted in an increase in both revenues and profits in comparison
with the previous half-year.
(2) Takenaka Corporation
Under the difficult circumstances facing the construction industry,
Takenaka has consistently carried out sound management placing
top priority on strengthening corporate culture and quality
management based on our technical strength. We have worked to
improve our performance by strengthening our competitiveness
in receiving orders and thoroughly adopting a customer-oriented
stance and improving design quality and construction quality.
Takenaka Corporation's performance for this half year was sales
of 473.4 billion yen (up 17.5 percent from the same period last
year), ordinary profit of 11.5 billion yen (up 122.1 percent),
and interim net profit of 6.9 billion yen (up 247.4 percent).
As was the case with consolidated performance, both revenues
and profits were up compared to the previous half-year.
This can be attributed to an improvement in the profitability
of completed work brought about by cost-cutting efforts such
as diversifying procurement methods. Orders received, a leading
indicator of performance, were 442.3 billion yen, (up 34.3 percent
increase from the same period last year), and construction work
carried forward increased to 1,102.9 billion yen.
2. Performance Outlook for this Fiscal Year
For the second half of this year, although economic recovery
is expected to continue, the construction market environment
is predicted to remain in a difficult state. Under these circumstances
the expected performance outlook for this fiscal year is as
follows.
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