Kajima Corporation Annual Report 2009
During the fiscal year ended March 31, 2009, the turmoil in
the financial and capital markets that originated in the U.S.
spread to Japan’s economy. Together with factors such as the rapid
appreciation of the yen, it has had a major impact on corporate
earnings and household spending. Consequently, building construc-
tion investment including housing construction is estimated to have
been about ¥27.5 trillion, a marginal decrease from the previous
fiscal year. The decline in capital expenditures has made the envi-
ronment for the construction industry even more challenging.
Despite these rapid changes in the market environment that
began during the fiscal year, our teams of experts in a range of
sectors continued to identify new projects. We brought together
our diverse expertise in areas from planning to after-sale service.
For example, we formed special teams of experts in a wide range
of sectors and employed marketing approaches capitalizing on
the comprehensive capabilities we are known for.
As a result, despite the deterioration of market conditions dur-
ing the fiscal year ended March 31, 2009, contract awards for
domestic building construction projects reached ¥913.2 billion,
which was essentially in line with our initial target. Revenues rose
7.0 percent to ¥1,003.7 billion, primarily due to the large amount
of new orders received in the previous fiscal year. Despite high
construction material costs, initiatives emphasizing profitability
Sankei Hall Breeze
Review of Operations
Kajima's core construction business consists of building
construction and civil engineering. In a challenging
environment that is changing rapidly, we continue to
optimize our sophisticated technologies and compre-
hensive capabilities to win a stable flow of contracts
and execute them efficiently. This has been an impor-
tant factor supporting gross margin improvement in the