full Annual Report 2003(5.9

24
Summary of Business Performance for Fiscal 2003
Overview
During the fiscal year under review, the Kajima Group companies performed
as follows:
Consolidated revenues totaled ¥1,874.8 billion, down 9.0% from the
previous year, reflecting the setbacks in total construction revenues of
the Company and its group companies.
Consolidated gross profit dropped 9.6% as construction revenues
and the gross profit margin also decreased, resulting in consolidated
operating income of ¥36.3 billion, down 14.2%. Consolidated net
income recovered to ¥10.1 billion from the net loss of ¥41.2 billion a
year earlier, when the Group restructured its asset holdings by booking
a large loss.
Segment Performance
Construction
•Contracts Awarded
Year ended Year ended
March 31, 2003 March 31, 2002
(Millions of Yen)
Construction in Japan ¥1,132,437 ¥1,252,815
Construction overseas
(The Company and consolidated
140,599 156,676
companies in Japan) 37,884 39,736
(Overseas subsidiaries) 102,714 116,939
Construction total ¥1,273,036 ¥1,409,492
•Revenues
Year ended Year ended
March 31, 2003 March 31, 2002
(Millions of Yen)
Construction in Japan ¥1,449,017 ¥1,624,925
Construction overseas
(The Company and consolidated
105,757 134,225
companies in Japan) 19,959 26,846
(Overseas subsidiaries) 85,798 107,379
Construction total ¥1,554,775 ¥1,759,151
(1) Domestic Operations
New construction orders for the Group companies totaled ¥1,132.4
billion, down 9.6% from the previous year, reflecting drops in orders
secured by the Company and Chemical Grouting Co., Ltd. The
Company itself accounted for ¥265.1 billion in civil engineering contracts
(down 6.1%) and ¥726.0 billion in architectural construction
contracts (down 10.5%), for a total of ¥991.1 billion (down 9.3%). The
civil engineering business suffered from weak demand in public and
private markets, while the architectural construction business slipped
as non-manufacturing clients sharply reduced their orders.
Group revenues for the year stood at ¥1,449.0 billion, a 10.8%
decline. Both the Company and its consolidated companies in Japan
posted lower total revenues. The Company registered total revenues
of ¥1,343.7 billion (down 6.4%), with ¥373.5 billion in civil engineering
contracts (up 3.0%) and ¥970.1 billion in architectural construction
contracts (down 9.5%).
(2) Overseas Operations
New orders received amounted to ¥140.6 billion (down 10.3% from
the previous year), which breaks down to ¥102.7 billion awarded to
overseas subsidiaries and ¥37.9 billion secured by the Company and
its consolidated companies in Japan. The decrease is mostly attributable
to reduced contract awards to the Company’s Taiwan subsidiary.
Total revenues reached ¥105.8 billion (down 21.2%), consisting of
¥85.8 billion posted by overseas subsidiaries and ¥20.0 billion by the
Company and its consolidated companies in Japan.
(3) Profit Margins
The Group finished the period with a gross profit of ¥101.9 billion,
down ¥18.6 billion from last year. The results reflect a smaller total
revenue base, coupled with intense price competition in the marketplace
that pushed the Group companies’ gross profit margin on completed
construction jobs down to 6.6% from 6.8% a year ago. The
Company itself also suffered a year-on-year deterioration in the same
margin from 7.0% to 6.9%.