Net Profits at Japan Listed Firms Up 64 Pct in April-June

Tokyo, Aug. 14 (Jiji Press)–Combined net profits at listed Japanese companies soared 64 pct year on year in April-June, thanks to strong demand related to artificial intelligence and semiconductors, the weaker yen and the reduced impact of U.S. tariffs, according to a tally by SMBC Nikko Securities Inc. Of the 1,113 firms making up the TOPIX index on the Tokyo Stock Exchange and closing their books in March, 1,084, or 97.4 pct, had announced their earnings for April-June by Thursday. Their combined net profits totaled 19,869 billion yen, according to the brokerage house. The companies’ net profits for the full year through March 2027 are also expected to post double-digit growth. By industry, net profits at electric machinery makers shot up 96.5 pct thanks to robust AI and chip demand. Net profits at transport machinery producers jumped 92.3 pct, rebounding from the impact of high U.S. tariffs. The weaker yen also led to the profit surge. The banking industry saw a 41.1 pct increase on the back of the Bank of Japan’s interest rate hikes. Meanwhile, airlines and mining companies suffered falls of 50.5 pct and 57.5 pct, respectively, due to high oil prices caused by tensions in the Middle East. For all sectors, full-year net profits are forecast at 65,509 billion yen, up 13.3 pct from the previous year. Many companies raised their earnings forecasts amid the yen’s depreciation although the Iran situation is unlikely to calm down by the end of March 2027. Corporate earnings in the current fiscal year are likely to prove strong, with financial market players predicting a 20 pct increase, Nobuhiro Takeda, equity strategist at SMBC Nikko, said. END [Copyright The Jiji Press, Ltd.]