Sekisui sees steady recovery in Japan

Japanese property developer Sekisui has reported a +25.8% increase in net operating income to JPY 70.9 billion (US$ 866 million) for the financial year 2011, ended January 31, 2012, compared with the previous year.

Sales for the property developer were also up, at JPY 1.53 trillion (US$ 18.7 billion), growth of +2.8% year on year.

Sekisui attributes its gains to the steady recovery now being seen in its domestic market, following the Great East Japan Earthquake of March 2011.

The country has seen manufacturing activities return to normal, which in turn has helped restore business. Sekisui also reported that it has seen growth in orders supported by demand for reconstruction in areas affected by the disaster.

However, a strong Yen and the suspension of production at Japan's production bases in Thailand due to the floods, had placed a downward pressure on Sekisui's corporate earnings, according to the company.

The Japanese government has offered its support to the development of environmentally friendly housing and Sekisui has been tapping into that market.

Increased consumer demand for safe and reliable housing products, following the earthquake, saw Sekisui profit from the promotion of homes featuring its SHEQAS antiseismic system, as well as its Green First homes, which offer a photovoltaic power generation system or household fuel cell system.

Looking ahead, Sekisui forecast moderate growth for the Japanese market, fuelled in part by government support. For the 2013 fiscal year, the company forecasts a further +7.8% growth in consolidated net sales to JPY 1.65 trillion (US$ 20.2 billion).