3 of 4 major Japanese contractors in red in FY 2001.

TOKYO, May 17 Kyodo

Three of four major construction companies posted group net losses in fiscal 2001 due chiefly to massive appraisal losses on real estate holdings amid falling land prices, according to earnings reports released Friday by the firms.

Obayashi Corp. registered a group net loss for the second straight year in the 12 months to March 31, while the group net balances of Taisei Corp. and Kajima Corp. fell into the red.

Only Shimizu Corp. returned to the black on a group net balance as it fully disposed of real estate holdings with latent losses in the previous year.

Obayashi will reduce its full-year dividend payment for the current year through March 31, 2003 by 2 yen to 6 yen per share. Kajima will also cut its full-year dividend to 5 yen from 7 yen per share in fiscal 2001.

Obayashi's group net loss swelled to 74.08 billion yen from the previous year's loss of 6.47 billion yen. It posted an extraordinary loss of 140.12 billion yen, including 134.23 billion yen in appraisal losses on real estate holdings as it reduced their value to levels at which it will be able to sell.

Kajima posted a group net loss of 41.15 billion yen due largely to 113 billion yen in extraordinary losses related to development projects, and capital and appraisal losses on its securities holdings as well as valuation losses on real estate for sale.

Taisei's group net loss came to 31.00 billion yen, a reversal of the previous year's profit of 8.38 billion yen, on extraordinary losses of 111.76 billion yen, including appraisal losses on properties for sale and losses on the sale of fixed properties.

In contrast, Shimizu posted a group net profit of 10.08 billion yen, a turnaround from the previous year's loss of 64.44 billion yen.

Kajima and Obayashi registered increases in group operating revenues, but Obayashi suffered a 50.1% drop in group operating profit due to lower profit margins for construction projects.

For the current business year to March 31, 2003, all four companies forecast profits in group pretax and net balances while projecting smaller operating revenues amid bleak demand in the construction industry.

Following are the four leading general contractors' earnings results for fiscal 2001 on a consolidated basis. Figures are in billions of yen with percentage changes from the preceding year in brackets:

              Operating   Pretax    Net
              Revenues    Profit   Profit
 Kajima       2,060.35     36.18  -41.15
                 (7.9)    (-7.2)   ( - )
 Taisei       1,673.83     46.93  -31.00
                (-4.4)   (-15.6)   ( - )
 Shimizu      1,584.04     36.70   10.08
                (-7.5)   (-25.9)   ( - )
 Obayashi     1,403.67     25.68  -74.08
                 (6.9)   (-23.2)   ( - )