FinancialHibiya Engineering
Summary of Consolidated Financial Results: Q2 Fiscal Year Ending March 31, 2017
10 pages~11 min full read
Hibiya Engineering achieved a significant financial turnaround in the first half of fiscal year 2017, reporting an operating income of 1,543 million yen compared to a 539 million yen loss in the same period of 2015.
See it on page 1Net sales for the six-month period ending September 30, 2016, reached 29,586 million yen, representing an 8.6% increase year-over-year.
See it on page 8The company maintained a strong financial foundation with an equity ratio of 77.8%, despite facing a 4.0% decline in orders received to 34,431 million yen.
See it on page 4Profit attributable to owners of the parent for the first half of the fiscal year was 902 million yen, with ordinary income totaling 1,475 million yen.
See it on page 4Management transitioned the company's depreciation method for facilities acquired after April 1, 2016, from the declining-balance method to the straight-line method, noting no material impact on earnings.
See it on page 5The company is actively positioning itself as a comprehensive, one-stop engineering services provider, leading to a revision of its full-year earnings forecast.
See it on page 4Hibiya Engineering, Ltd. reported its consolidated financial results for the second quarter of the fiscal year ending March 31, 2017, reflecting a period of operational recovery within the Japanese construction sector. Despite a challenging economic environment characterized by rising labor and material costs, the company transitioned from an operating loss in the previous year to profitability. The primary objective of the report is to provide transparency regarding the company's financial standing, operational performance, and updated earnings forecasts for the full fiscal year.
Key financial metrics for the first half of the fiscal year show net sales of 29,586 million yen, an 8.6% increase compared to the same period in the prior year. The company achieved an operating income of 1,543 million yen, a significant turnaround from the 539 million yen operating loss recorded in the first half of 2015. Ordinary income reached 1,475 million yen, and profit attributable to owners of the parent stood at 902 million yen. While orders received declined by 4.0% to 34,431 million yen, the company maintained a strong equity ratio of 77.8%.
The scope of the report covers the consolidated activities of the Hibiya Engineering Group in Japan from April 1, 2016, to September 30, 2016. Financial statements were prepared in accordance with Japan GAAP. Notable accounting changes included the adoption of a new depreciation method for facilities acquired after April 1, 2016, shifting from the declining-balance method to the straight-line method, which had no material impact on earnings. Management also revised its full-year forecast, which was disclosed in a separate announcement, reflecting the company's ongoing efforts to function as a comprehensive, one-stop engineering services provider.
