Construction firms under rehabilitation report weak results+.TOKYO, Nov. 28 Kyodo Construction companies struggling to rehabilitate re·ha·bil·i·tate v. 1. To restore to good health or useful life, as through therapy and education. 2. To restore to good condition, operation, or capacity. their management with the help of banks fell into the red in the first half of fiscal 2000, as stricter accounting rules forced them to realize losses, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. unconsolidated interim results released by the companies by Tuesday. While six general construction contractors under rehabilitation rehabilitation: see physical therapy. have so far reported their results in the six months that ended in September, Tobishima Corp. was the only one to register a net profit. Construction orders received by Fujita Corp., Haseko Corp. and Aoki Corp., which won loan forgiveness from their main creditor banks, increased because, as a Fujita official put it, ''customer confidence in them has improved'' in the private sector. However, as changes in accounting rules forced them to register valuation losses on real estate held for sale and financial product holdings, Fujit incurred a net loss of 4.5 billion yen, Haseko 5.1 billion yen and Aoki 800 million yen. Sato Kogyo Co. posted a net loss of 700 million yen on an extraordinary loss of 5 billion yen for the valuation of assets including golf club memberships. Hazama Corp., whose main creditor banks agreed in September to waive a combined 105 billion yen in loans, reported a net loss of 2.9 billion yen as losses from the liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy of affiliated companies Affiliated Companies A situation that occurs when one company owns a minority interest (less than 50%) in another company. Also refers to companies that are related to each other in some way. Notes: An affiliated company is sometimes referred to as a subsidiary. totaled 112.5 billion yen. The earnings outlook for fiscal 2000 is bleak as the construction companies will continue dealing with nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. they accumulated during the high-flying days of the economic bubble An economic bubble (sometimes referred to as a "speculative bubble", a "market bubble", a "price bubble", a "financial bubble", or a "speculative mania") is “trade in high volumes at prices that are considerably at variance from intrinsic values”. in the late 1980s. Following are the six construction companies' unconsolidated results in billions of yen in the April-September first half of fiscal 2000. Figures in parentheses See parenthesis. parentheses - See left parenthesis, right parenthesis. are year-on-year percentage comparisons.
Operating Pretax Net
Revenue Profit Profit
Fujita 179.9 -0.9 -4.5
(10.2) ( - ) ( - )
Hazama 177.9 2.0 -2.9
(6.6) (-15.6) ( - )
Sato Kogyo 156.0 4.0 -0.7
(9.7) ( - ) ( - )
Haseko 109.2 3.3 -5.1
(14.1) (-3.7) ( - )
Tobishima 101.2 0.8 0.1
(-1.8) (-6.5) (-10.0)
Aoki 60.6 1.3 -0.8
(9.7) (101.5) ( - )
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