Summary of Consolidated Financial Results: Second Quarter of Fiscal Year Ending March 31, 2012 (Japan)

The consolidated financial results for Hibiya Engineering, Ltd. for the first half of the fiscal year ending March 31, 2012, reflect a challenging operating environment characterized by the aftermath of the Great East Japan Earthquake, a strong yen, and global economic instability. The company, which operates within the Japanese construction industry, reported net sales of 22,881 million yen for the period ending September 30, 2011, representing a 1.0% decline compared to the same period in the previous year.

Profitability metrics saw a significant downturn during this six-month interval. The company recorded an operating loss of 485 million yen, a sharp reversal from the 568 million yen operating income reported in the first half of the prior fiscal year. Similarly, ordinary income shifted from a gain of 1,111 million yen to a loss of 9 million yen, ultimately resulting in a net loss of 199 million yen. Despite these results, the company maintained a solid financial position with total assets of 65,479 million yen and an equity ratio of 76.3%.

The decline in performance is attributed to a difficult construction market, specifically the prolonged slump in public-works investments, which offset signs of improvement in certain private-sector categories. While the company pursued aggressive business activities to secure orders—totaling 25,240 million yen for the period—the cost of sales and administrative expenses weighed heavily on the bottom line. Management has maintained its original full-year forecast, anticipating net sales of 64,000 million yen and a net income of 2,400 million yen for the fiscal year ending March 2012.