Tokyo, Sept. 1 (Jiji Press)–Japanese nonfinancial companies’ combined ordinary profits in April-June rose 24.6 pct from a year earlier to a record 44,666.8 billion yen, the Finance Ministry said Tuesday. Their profits rose for the seventh consecutive quarter, with manufacturers’ ordinary profits expanding amid growing demand related to artificial intelligence data centers and a weaker yen. Nonmanufacturers also enjoyed profit growth. Manufacturers’ ordinary profits jumped 57.0 pct to 17,687.5 billion yen, mainly driven by the strong performance of information and communications equipment makers that benefited from AI-related demand. Automobile manufacturers also contributed to the growth, thanks to the yen’s weakening and lower tariffs imposed by the administration of U.S. President Donald Trump than a year earlier. Nonmanufacturers’ ordinary profits climbed 9.8 pct, supported in part by strong profits in the lodging industry, reflecting by an increase in tourists and higher per-customer spending. Trading companies also saw their profits rise thanks to higher natural resource prices, including those of oil products. In the April-June quarter, nonfinancial companies’ capital spending increased 1.6 pct to 13,025 billion yen. Capital expenditures by manufacturers declined 3.7 pct, following robust spending a year earlier to boost electric vehicle production. Meanwhile, capital spending by nonmanufacturers rose 4.7 pct, lifted by the construction of new entertainment and accommodation facilities in anticipation of continued inbound tourism demand. As of the end of fiscal 2025 through March this year, retained earnings, or profits minus dividends and taxes paid, at nonfinancial businesses rose 2.7 pct to 654,822.8 billion yen, marking a record high for the 14th consecutive year. A ministry official said the results appeared to reflect a moderate economic recovery. At the same time, the official suggested that the ministry will continue to closely monitor the impact of inflation, the situation in the Middle East and recent natural disasters on corporate activities. END [Copyright The Jiji Press, Ltd.]
Japanese Firms’ April-June Ordinary Profits Hit Record High
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