Oriental Shiraishi Corporation
Notice Regarding Recording of Special Loss Related to Construction Work by Our Subsidiary and Revision of Full-Year Earnings Forecast
Due to re-fabrication and re-installation costs of approximately 5 billion yen caused by defective bridge manufacturing by a subsidiary, a special loss of 1 billion yen has been recorded, and the full-year forecast for net income attributable to owners of parent has been downward revised by 16.9%, from 3,250 million yen to 2,700 million yen.
Key Figures
- Special loss recorded: 1 billion yen (best estimate as of now)
- Full-year net income attributable to owners of parent forecast: 2,700 million yen (down 16.9% from previous forecast)
- Estimated total additional costs: approximately 5 billion yen (re-fabrication and re-installation costs)
AI要約
Regarding the Recording of Special Loss
In the bridge fabrication work conducted by a joint venture involving consolidated subsidiary Nihon Kyoryo Co., Ltd., numerous welding defects were confirmed at the contractor Kanadevia Corporation’s Mukojima Factory, including unqualified welders. As a result, re-fabrication and re-installation will be undertaken. This will incur additional costs of approximately 5 billion yen, leading to the recording of a special loss of 1 billion yen as of now.
Revision of Full-Year Earnings Forecast and Future Measures
For the consolidated full-year earnings forecast for the fiscal year ending March 2026, net sales, operating income, and ordinary income are maintained at the previous forecast levels. However, due to the recording of the special loss, net income attributable to owners of parent has been downward revised by 16.9%, from 3,250 million yen to 2,700 million yen. While additional costs may arise through discussions with the ordering party, the relevant subsidiary will strengthen its quality control system and intends to claim damages from the contractor.
