Construction subcontractor Asahi Kasei Corp. lowered its annual forecast by 14 percent on Friday, but said the figure excludes a probe into its work on building foundations.
An apartment building in Yokohama is leaning, and investigations are underway into work the company did elsewhere, too.
The fallout from falsified data was not included in the revision because it is difficult to estimate at this point, the company said.
Asahi Kasei lowered its net income forecast to ?91 billion from an original forecast of ?106 billion for the year ending March 31 after booking a charge for its electronics business, the company said in a statement Friday. The housing business accounted for 40 percent of Asahi Kasei¡¯s operating profit last year.
The scandal has sent construction and real estate shares lower, making them the worst-performing groups on the Topix index since Oct. 13, when news of the flawed building first emerged. Asahi Kasei¡¯s shares have declined 21 percent and shares of Sumitomo Mitsui Construction Co., the contractor, have plunged 28 percent in the period.
Mitsui Fudosan Co., the seller of the Yokohama apartments, kept its full-year earnings unchanged at ?107 billion in a separate filing on Friday after the market closed.
No decision has been made about executives giving back their compensation, Hideki Kobori, Asahi Kasei¡¯s chief financial officer, told a news conference in Tokyo, responding to an earlier Nikkei Shimbun report that the company is considering such a move.
Discussions about executive compensation may start after the company investigates the condition of more than 3,000 buildings it worked on in the past 10 years, Kobori said.
Asahi Kasei said on Nov. 2 it found falsified data on 19 of 41 projects that were overseen by the supervisor of the lopsided Yokohama building that triggered the investigation. A number of other employees doctored data on separate projects, according to a statement by the company on the same day.
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