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Japan's listed firms hit by 71 pct profit slump: survey
AFP - Sunday, February 1
TOKYO (AFP) - - Japanese listed companies suffered a 71 percent fall in pre-tax profit in the three months to December due to shrinking demand and the yen's surge against the dollar, a newspaper survey showed Sunday.
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The Nikkei survey of earnings reports from non-financial companies said export-dependent manufacturers such as autos and electricals were hardest hit.
Of the 453 companies surveyed, 352 reported profit declines or losses in the quarter, the business daily said.
For the full business year to March, their combined pre-tax profit is estimated to decline 51 percent, in what would be the first drop in seven years.
One in four firms, however, projected growth for the year, Nikkei said.
"Companies are adjusting inventories at a rapid pace through decreases in production and are rapidly cutting costs," the daily said.
"There is the possibility of their competitiveness strengthening in the future if they go ahead with reforming their profit structure in the midst of the recession."
The combined pre-tax profit fell for the fourth straight quarter. The decline was far sharper than the 14-percent slide in the April-June period and the 31-percent fall in July-September.
Manufacturers suffered big losses in the October-December term, with sales falling 14 percent, compared with an eight-percent drop for all surveyed companies.
On the other hand, 101 companies increased their profit or returned to profitability in the three months to December. The steel and communications sectors increased their profit, the daily said.
The survey covered about 30 percent of all listed firms which close their annual accounts in March. Nearly 3,900 companies were listed in Japan at the end of 2008.
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