ID :
16331
Tue, 08/19/2008 - 09:12
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Shortlink :
https://oananews.org//node/16331
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Major Japanese Firms' Profits Down 14.6 Pct in April-June
Tokyo, Aug. 18 (Jiji Press)--Japanese nonfinancial firms listed on the Tokyo Stock Exchange's first section suffered a 14.6 pct year-on-year fall in their consolidated recurring profits in April-June, data compiled by Jiji Press showed Monday.
The profits at the 1,199 listed major firms that close books at theend of March dropped for the second straight quarter.
Export-oriented companies such as automakers and consumer electronics makers were hit hard by the strengthening of the yen, surgingraw materials costs and slowing U.S. economic growth.
Despite rises in their sales, steelmakers, chemical makers and many other materials manufacturers saw profits slip, due to delays in raisingproducts prices to cover higher raw materials costs.
Soaring fuel prices forced electric power firms to report majorprofit declines or to fall into the red.
Group sales at the TSE first section-listed firms rose 4.1 pct inthe first half of fiscal 2008, the data showed.
In the reporting three months, the dollar moved at around 105 yen, about 15 yen higher than in the same quarter last year. The stronger yen hurt the price competitiveness of Japanese products abroad and reduced the value of Japanese exporters' earnings overseas when these were convertedinto the yen.
While emerging nations continued to enjoy strong economic growth, outlooks for the U.S. and the European economies are increasingly uncertainin the wake of the subprime mortgage crisis.
With the specter of recession also rising for the Japanese economy, due in part to a series of price hikes for consumer goods, it is now difficult to find a positive factor for Japanese corporate earnings, anofficial at a major Japanese brokerage house said.
For the full year to March 2009, the listed firms expect an 8.5 pct year-on-year fall in their consolidated recurring profits and a 3.6 pct risein their group sales.
Of the firms, 132 revised down their recurring profit forecasts.
In the electric power industry, six out of the 10 firms now expectto report recurring losses, which are estimated to total 670 billion yen.
Although the power companies plan to raise their electricity charges, thehikes are not seen pushing up earnings until next year.
Many analysts believe Japanese corporate earnings will likely recover more slowly than initially anticipated as the U.S. economy is now expected to remain in a slump longer than originally thought and affectadversary to the emerging economies.
Optimists, however, say Japanese corporate earnings may start showing signs of recovery early next year, pointing to the recent drops inmaterials prices and the yen's value.
The profits at the 1,199 listed major firms that close books at theend of March dropped for the second straight quarter.
Export-oriented companies such as automakers and consumer electronics makers were hit hard by the strengthening of the yen, surgingraw materials costs and slowing U.S. economic growth.
Despite rises in their sales, steelmakers, chemical makers and many other materials manufacturers saw profits slip, due to delays in raisingproducts prices to cover higher raw materials costs.
Soaring fuel prices forced electric power firms to report majorprofit declines or to fall into the red.
Group sales at the TSE first section-listed firms rose 4.1 pct inthe first half of fiscal 2008, the data showed.
In the reporting three months, the dollar moved at around 105 yen, about 15 yen higher than in the same quarter last year. The stronger yen hurt the price competitiveness of Japanese products abroad and reduced the value of Japanese exporters' earnings overseas when these were convertedinto the yen.
While emerging nations continued to enjoy strong economic growth, outlooks for the U.S. and the European economies are increasingly uncertainin the wake of the subprime mortgage crisis.
With the specter of recession also rising for the Japanese economy, due in part to a series of price hikes for consumer goods, it is now difficult to find a positive factor for Japanese corporate earnings, anofficial at a major Japanese brokerage house said.
For the full year to March 2009, the listed firms expect an 8.5 pct year-on-year fall in their consolidated recurring profits and a 3.6 pct risein their group sales.
Of the firms, 132 revised down their recurring profit forecasts.
In the electric power industry, six out of the 10 firms now expectto report recurring losses, which are estimated to total 670 billion yen.
Although the power companies plan to raise their electricity charges, thehikes are not seen pushing up earnings until next year.
Many analysts believe Japanese corporate earnings will likely recover more slowly than initially anticipated as the U.S. economy is now expected to remain in a slump longer than originally thought and affectadversary to the emerging economies.
Optimists, however, say Japanese corporate earnings may start showing signs of recovery early next year, pointing to the recent drops inmaterials prices and the yen's value.
