Sekisui House sees Japan reconstruction boost

Japanese property developer Sekisui House reported a +24% year-on-year increase in first half net income to JPY 16.8 billion (US$ 218 million) after benefiting from demand for reconstruction in its disaster-hit domestic market.

The company reported a +1% year-on-year increase in sales for the six months to 31 July, 2011, to JPY 746 billion (US$ 9.6 billion).

"Sekisui House provided support to the owners of Sekisui houses and met an increase in demand for reconstruction in the areas affected by the [11 March earthquake and tsunami] disaster," the company said.

"We expect that our business performance will remain strong goring forward, given demand for the reconstruction of houses after the earthquake and a rise in interest in systems for the safety and security of dwellings."

Revised forecast

Indeed, the company - Japan's largest home builder - has revised its full-year forecasts upwards after experiencing strong demand for earthquake-proof housing technology, including its seismic vibration absorption system.

The company now expects to report full-year net sales of JPY 1520 billion (US$ 19.6 billion), a +2.1% increase on 2010, and net operating income of JPY 68 billion (US$ 879 million), up +20.7% year-on-year.

But the natural catastrophe that rocked Japan in March will take its toll on Sekisui's full-year results, and the company said it also expected to record an extraordinary loss of JPY 1.2 billion (US$ 15.5 million) for 2011, adding that the impact on its business activities and assets would be "minor".