ID :
60835
Sat, 05/16/2009 - 05:06
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https://oananews.org//node/60835
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Big firms' combined net balance to see loss for 1st time in 7 yrs+
Big firms' combined net balance to see loss for 1st time in 7 yrs+
TOKYO, May 15 Kyodo -
The combined net balance of leading Japanese companies listed on the First
Section of the Tokyo Stock Exchange is expected to fall into the red in fiscal
2008 for the first time in seven years, Nikko Cordial Securities Inc. said
Friday.
The combined net balance of the 979 firms that released results for the year to
March 31 by Thursday showed a loss of 339.9 billion yen in a reversal from the
previous period's profit of 19.45 trillion yen, the brokerage said.
On top of those companies, more firms and financial institutions on Friday
reported huge net losses, with Panasonic reporting 378.9 billion yen and Mizuho
Financial Group Inc. 588.8 billion yen.
''It's highly possible the combined net balance of publicly traded Japanese
companies will produce a loss (in fiscal 2008),'' a Nikko Cordial official
said.
The financial statements released by the 979 firms show that the global
economic crisis has dealt a serious blow to Japan's export-dependent
manufacturers which have been among the nation's most lucrative earners.
In addition, restructuring-related expenses and evaluation losses on
shareholdings weighed heavily on their profitability, according to the
statements.
Hardships are likely to hound the economy, given that automakers, home
electronics makers and steelmakers anticipate net losses in the current
business year to next March 31.
Among industrial sectors that incurred huge net losses as a whole, a total of
115 electronics makers reported a combined loss of 2.68 trillion yen, while 53
makers of motor vehicles and other transportation vehicles incurred a combined
loss of 971.2 billion yen. Brokerage houses reported a combined 911.8 billion
yen loss.
Nikko Cordial noted that 315 leading companies, or one-third of the 979 in
question, were in the red in fiscal 2008.
Hitachi Ltd., which took a drubbing from anemic sales of such mainline products
as flat-panel televisions, large restructuring expenses and appraisal losses on
stockholdings, booked the worst-ever net loss for any Japanese manufacturer at
787.3 billion yen.
Financial industry giant Nomura Holdings Inc. trailed Hitachi with a loss of
709.4 billion yen.
Combined sales at the 979 shrank 7.6 percent in fiscal 2008.
Their combined net balance is expected to return to the black at 5 trillion yen
in the current business year as they reap fruits of their restructuring
programs. However, their sales are estimated to fall 13 percent in fiscal 2009.
Norikazu Kitsuta, a Nikko Cordial strategist, said, ''The harsh situation will
hound companies unless their sales firstly rebound.''
''The point is how sharply the government's stimulatory policies will spur
demand down the tracks,'' he said.
==Kyodo
TOKYO, May 15 Kyodo -
The combined net balance of leading Japanese companies listed on the First
Section of the Tokyo Stock Exchange is expected to fall into the red in fiscal
2008 for the first time in seven years, Nikko Cordial Securities Inc. said
Friday.
The combined net balance of the 979 firms that released results for the year to
March 31 by Thursday showed a loss of 339.9 billion yen in a reversal from the
previous period's profit of 19.45 trillion yen, the brokerage said.
On top of those companies, more firms and financial institutions on Friday
reported huge net losses, with Panasonic reporting 378.9 billion yen and Mizuho
Financial Group Inc. 588.8 billion yen.
''It's highly possible the combined net balance of publicly traded Japanese
companies will produce a loss (in fiscal 2008),'' a Nikko Cordial official
said.
The financial statements released by the 979 firms show that the global
economic crisis has dealt a serious blow to Japan's export-dependent
manufacturers which have been among the nation's most lucrative earners.
In addition, restructuring-related expenses and evaluation losses on
shareholdings weighed heavily on their profitability, according to the
statements.
Hardships are likely to hound the economy, given that automakers, home
electronics makers and steelmakers anticipate net losses in the current
business year to next March 31.
Among industrial sectors that incurred huge net losses as a whole, a total of
115 electronics makers reported a combined loss of 2.68 trillion yen, while 53
makers of motor vehicles and other transportation vehicles incurred a combined
loss of 971.2 billion yen. Brokerage houses reported a combined 911.8 billion
yen loss.
Nikko Cordial noted that 315 leading companies, or one-third of the 979 in
question, were in the red in fiscal 2008.
Hitachi Ltd., which took a drubbing from anemic sales of such mainline products
as flat-panel televisions, large restructuring expenses and appraisal losses on
stockholdings, booked the worst-ever net loss for any Japanese manufacturer at
787.3 billion yen.
Financial industry giant Nomura Holdings Inc. trailed Hitachi with a loss of
709.4 billion yen.
Combined sales at the 979 shrank 7.6 percent in fiscal 2008.
Their combined net balance is expected to return to the black at 5 trillion yen
in the current business year as they reap fruits of their restructuring
programs. However, their sales are estimated to fall 13 percent in fiscal 2009.
Norikazu Kitsuta, a Nikko Cordial strategist, said, ''The harsh situation will
hound companies unless their sales firstly rebound.''
''The point is how sharply the government's stimulatory policies will spur
demand down the tracks,'' he said.
==Kyodo
