The Wall Street Journal-20080213-Shimizu Corp-- Construction Squeeze Hurts Profitability

Return to: The_Wall_Street_Journal-20080213

Shimizu Corp.: Construction Squeeze Hurts Profitability

Full Text (122  words)

Shimizu Corp. said its net profit edged up 2.3% for the April- December period thanks to lower tax-related costs. But the profitability of its main construction business fell because of competition, fewer large projects and higher raw-materials costs, the Tokyo-based general contractor said. Shimizu's net profit increased to 7.96 billion yen ($74.5 million) from 7.78 billion yen. Revenue slipped 1.4% to 936.92 billion yen from 949.76 billion. It left the fiscal year to March earnings forecast unchanged. It expects 28 billion yen in net profit and 1.685 trillion yen in revenue. Contractors usually book the largest amount of revenue in the last quarter of their fiscal year. Shimizu didn't disclose its October- December earnings. Its earnings are based on Japanese accounting standards.