Taiheiyo Cement’s president Shuji Fukuda has said the company’s earnings forecast for fiscal 2013 that was released in May could be on the conservative side as earthquake reconstruction efforts drive up cement demand.
The report in the Nikkei said that rebuilding work has raised expectations that Taiheiyo’s earnings could exceed its earlier outlook, prompting shares in the company to rise on Tuesday.
"Last year's disaster has raised awareness of disaster management and infrastructure spending is highly likely to boost the firm's earnings," said an official at a domestic brokerage.
"A disaster-hit factory in Ofunato, Iwate Prefecture, returned to normal production on Wednesday and the recovery in production capacity is providing a boost for the stock," it added.
