Major Japan Firms Log Lower Profits for First Time in 3 Years
Tokyo, May 13 (Jiji Press)--Major Japanese nonfinancial companies' combined group net profits in the business year to March fell 2.2 pct from the previous year, down for the first time in three years, a Jiji Press tally showed Monday.
The result partly reflected a slowdown in the Chinese economy. The firms expect higher profits in the year to March 2020, but uncertainty is growing due to U.S.-China trade friction.
The survey covered 927 companies listed on the Tokyo Stock Exchange's first section that have announced their earnings for the year to March 2019 by Monday. They account for about 70 pct of all TSE first-section companies that close their books in March.
Major plant engineering firm Chiyoda Corp. <6366> posted a group net loss of as much as 214.9 billion yen, partly because of losses from its U.S. operations, while shipping giant Kawasaki Kisen Kaisha Ltd. <9107> logged a 111.1-billion-yen loss due to a worsening of the shipping market.
Major automakers that have led the growth of the Japanese economy, including Toyota Motor Corp. <7203> and Honda Motor Co. <7267>, saw lower profits, affected by appraisal losses on shareholdings or the yen's appreciation.
[Copyright The Jiji Press, Ltd.]