Major Japan Firms Suffer Profit Drops for 3rd Straight Quarter

Economy

Tokyo, Aug. 9 (Jiji Press)--Major Japanese nonfinancial companies' combined group net profits in April-June fell 0.9 pct from a year earlier, dropping for the third straight quarter, according to a tally by SMBC Nikko Securities Inc.

The result reflected profit drops at manufacturers caused by the escalating U.S.-China trade war, analysts said.

The survey covered earnings reports released by Thursday from companies listed on the Tokyo Stock Exchange that close their books in March, or 82.8 pct of all listed firms on the TSE.

It found that manufacturers suffered a plunge of 28.4 pct in their combined group net profit while nonmanufacturers enjoyed a net profit jump of 35.6 pct, mainly thanks to profit rises at utilities.

In the manufacturing sector, steelmakers, automakers and electronics firms in particular were battered by a slowdown in the global economy caused by the trade conflict between the two superpowers, analysts said.

[Copyright The Jiji Press, Ltd.]

Jiji Press