Listed Japan Firms Enjoy Sharp Profit Growth in April-June

Tokyo, Aug. 6 (Jiji Press)–Listed Japanese companies are believed to have enjoyed sharp profit growth in April-June, led by semiconductor- and export-related companies on the back of robust demand linked to artificial intelligence and semiconductors, as well as a weaker yen. Their profit forecasts for the year through March 2027 also suggest double-digit percentage growth, as the impact of U.S. tariffs and tensions in the Middle East has eased. SMBC Nikko Securities Inc. has so far surveyed 555 of the 1,113 companies in the TOPIC stock index that close their books every March. Their April-June net profits jumped 67.4 pct to 13,783.1 billion yen. Electric equipment makers’ profits were up 92.4 pct thanks to strong demand for AI-related products, and transportation equipment makers, including automakers, saw their profits soar 92.6 pct. Banks also reported profit increases amid rising interest rates. Meanwhile, the electricity and gas sector was dragged down by a large loss at Tokyo Electric Power Company Holdings Inc. Airlines’ profits dropped 50.5 pct due to higher fuel costs amid the U.S.-Iran conflict. The surveyed companies projected that their full-year profits will increase 11.7 pct to 64,619 billion yen, with 95 of them upgrading their projections. “Companies are progressing very steadily,” said Hikaru Yasuda, a senior equity strategist at SMBC Nikko. “Despite external uncertainties, their earnings were very strong.” END [Copyright The Jiji Press, Ltd.]