Sumiken Mitsui Road forecast revised downward due to construction loss

Sumiken Mitsui Road (TSE:1776) today announced it will record a construction loss of JPY 400 million as an operating expense in its consolidated and non-consolidated financial results for the fiscal year ending March 2025. This stems from rework on a large civil engineering project completed during the year. The company cited concerns about road subsidence, leading to the use of a different hardening material than specified, which necessitated re-work. Consequently, Sumiken Mitsui Road has revised its full-year consolidated forecasts downwards. The revenue forecast was reduced from JPY 31.4 billion to JPY 30.1 billion. The operating profit forecast was cut from JPY 1.11 billion to JPY 220 million and net profit forecasts declined from JPY 690 million to JPY 165 million. Earnings per share have been revised from JPY 75.13 to JPY 17.96.