TOKYO -- Japanese contractor Maeda likely will see net profit jump 18% to a record of just under 16 billion yen ($139 million) this fiscal year on a rush in construction orders and a strong showing by Maeda Road Construction and other subsidiaries.
The company previously projected a 26% decrease for the year ending in March, but it was able to transfer high building costs to clients on strong demand for construction.
Maeda also boosted the profitability of its construction business, which focuses on offices and factories. It streamlined the building process to shorten timelines and cut costs. The profit margin on completed construction projects likely will widen from just under 7% to about 8% this fiscal year.
Sales are seen rising 4% to roughly 420 billion yen, likely topping the forecast for 390 billion yen due to progress in the company's large-scale projects such as building redevelopments in Tokyo.
Maeda is expected to pay the same 9-yen dividends as last fiscal year, but could increase payments on a strong performance.