Economic confidence fuels Sekisui’s Q1 results

Japanese house builder Sekisui House has reported a jump in revenues and profit for first three months of 2013. The results came amid increasing confidence in the country’s economy, thanks to a government stimulus programme.

The contractor reported revenues of JPY 358 billion (US$ 3.6 billion), up +7.3% year-on-year, while net income soared +260% compared to the first three months of 2012 to total JPY 10 billion (US$ 105 million).

Sekisui House said economic sentiment had growth during the first quarter due to factors such as the government-led economic policy and significant monetary easing by the Bank of Japan, as well as stock market improvements and further weakening of the Yen.

Japan’s Prime Minister Shinzo Abe approved a JPY 10 trillion (US$ 116 billion) stimulus package at the start of the year that aims to lift the country’s economy out of its fifth recession in 15 years.

The so-called “Abenomics” programme includes a mix of government spending and a strategy designed to jolt the economy into growth.

Housing market

Sekisui House also said Japan’s housing market was benefitting from rising expectations for improvement in employment and income conditions, with new housing starts picking up.

Nevertheless, Sekisui said it had also been promoting its business to get its overseas operations on track for growth – part of its plan to create sustainable expansion under its “Slow and Smart” strategy.