Financial Highlights

For the fiscal year ended March 2010, private sector demand contracted sharply in Japan, which continued to experience grave economic difficulties in the wake of the world financial crisis. Orders awarded to the construction industry dropped considerably from the previous year due to stagnant housing and real estate markets, sustained investment reduction in the private sector, and decreasing public sector orders. This market slump intensified competition for new orders and created an even more challenging management climate.

In this context, consolidated net sales for the Shimizu Group fell 15.8% to ¥1,589.2 billion (US$17.0 billion), declining in both construction and real estate development segments. As for income, while gross profit from completed construction contracts rose due to improved profitability, operating income fell 0.9% to ¥22.1 billion (US$237.1 million) due to a decrease in gross profit from real estate development.

After recognizing special losses, including an impairment loss from fixed assets whose profitability declined significantly, our net result for this year was a loss of ¥6.8 billion (US$73.4 million), for which we offer our deepest regrets.