Sekisui sees ‘normalised’ manufacturing in Japan

Japanese property developer Sekisui House reported an +83.4% year-on-year increase in net income to JPY 24.8 billion (US$ 321 million) after demand for reconstruction in its disaster-hit domestic market boosted results.

The company said the Japanese economy had seen a "normalisation of manufacturing activities" as it recovered from the 11 March earthquake and tsunami, with the supply-side constraints imposed by the disaster "largely resolved".

It reported a +4.9% increase in net sales to JPY 1.1 trillion (US$ 14.4 billion) - an increase which it said was down to a surge in demand for earthquake-proof housing technology, including its seismic vibration absorption system.

But the company also confirmed an extraordinary loss of JPY 1.2 billion (US$ 15.5 million) for 2011 as a result of the natural disaster.

In addition, Sekisui House highlighted concerns over international issues, including financial instability in Europe and the US and the suspension of production at Japan's manufacturing bases in Thailand due to the adverse impact of the recent flooding. The company said these factors had taken a toll on business activities in Japan in general, and were putting "significant downward pressure on corporate earnings".