Kajima Corp cut 2001/02 net forecast to loss

Kajima Corp, one of JapanÂ's big four general contractors, said on Friday it had cut its group net forecast for 2001/02 to a loss of 43 billion yen ($324.9 million) due to appraisal losses on real estate and investments.

Kajima said it had slashed its group net for the year to March 31 forecast from its November estimate of a profit of 10 billion yen to take into account a special loss of 110 billion.

The special charges include a 37 billion yen loss from a revaluation of real estate holdings that had declined in value.

Kajima, known for its work on skyscrapers and nuclear plants, also took a 28 billion yen charge related to the sale of some of its shareholdings, as well as writedowns of other stockholdings.

The general contractor also will book a 40 billion yen charge on write-downs of investments in domestic companies hit hard by JapanÂ's economic slump.

But the company revised up its forecast for current profit -- which is pretax and includes some non-operating items -- by 9.7 percent to 34 billion yen, reflecting a stronger-than-expected performance by some overseas subsidiaries.

It also raised its 2001/02 group sales forecast by three percent to 2.06 trillion yen.

Kajima is one of the healthier players in an industry saddled with mountains of debt after the bursting of JapanÂ's asset-inflated bubble a decade ago, but all Japanese builders have been hit by declining margins and a cutback in government spending on public works. ($1=132.34 yen)

(source: Kajima)

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