Japanese Companies’ Ordinary Profits Up 4.7 Pct in Oct.-Dec.

Tokyo, March 3 (Jiji Press)–Japanese nonfinancial companies’ combined ordinary profits for October-December last year increased 4.7 pct from a year earlier to 30,027 billion yen, marking a record high for the quarter, the Finance Ministry said Tuesday. The profits grew for the fifth consecutive quarter, supported by demand related to artificial intelligence and data centers. Manufacturers’ ordinary profits inched up 0.9 pct to 11,316.5 billion yen. Among them, information and communications equipment makers enjoyed a 52.9 pct profit surge, while electric machinery manufacturers saw their profits rise 21.8 pct thanks to growing demand for plant automation. Transport equipment makers, including automakers, posted a 6.4 pct profit fall mainly due to the impact of U.S. tariff policies, although the margin of decrease narrowed from the previous quarter’s 14.0 pct drop. Nonmanufacturers’ ordinary profits increased 7.1 pct to 18,710.5 billion yen, with information and communications companies reporting a 20.9 pct gain and the services sector logging a 20.7 pct rise on the back of continued price revisions at restaurants. In the final quarter of 2025, nonfinancial companies’ capital spending climbed 6.5 pct to 15,386.5 billion yen, a record high for October-December and the fourth straight quarterly increase. Nonmanufacturers, in particular, saw a substantial 10.1 pct rise, reflecting active expenditures related to urban development and data centers. Nonfinancial companies’ sales edged up 0.7 pct to 400,649.9 billion yen. A ministry official said that the economy is recovering moderately, while noting that the ministry intends to continue closely monitoring corporate activities, including price developments and the impact of U.S. trade policies. END [Copyright The Jiji Press, Ltd.]