Major Japan Firms Expect 4% Net Profit This Year

Major Japanese companies are expected to see a 4% rise in combined net profit to 42.9 trillion yen ($307 billion) this year, on course to log a record profit for the third consecutive year led by the auto sector, according to the latest tally by a securities house, Kyodo News reported.

Photo Insert: Honda Motor Co. and Nissan Motor Co. are also boosting output, projecting their net profit to jump 15.1 percent and 42 percent, respectively, this business year.

The projected profit for the current fiscal year through March 2024 will eclipse an aggregated net profit of 41.3 trillion yen in the last fiscal year, according to SMBC Nikko Securities' data on earnings forecasts at about 1,400 listed companies on the Tokyo stock market.

Among the market's 33 sectors, net profit in the transportation equipment sector, which includes automakers, is forecast to grow 11.4 percent in fiscal 2023 as a chip supply crunch eases and pent-up demand in the post-pandemic period revs up vehicle production.

Toyota Motor Corp. expects net profit to rise 5.2 percent to 2.58 trillion yen this fiscal year, reversing a 14 percent drop last fiscal year.

Honda Motor Co. and Nissan Motor Co. are also boosting output, projecting their net profit to jump 15.1 percent and 42 percent, respectively, this business year.

"Automakers are making a strong comeback," Hikaru Yasuda, equity strategist at SMBC Nikko, said. "It's going to be manufacturers like them that will push up the total profit of Japanese companies."

The tourism industry is also expected to drive growth at Japan Inc., benefiting from the removal of COVID-19 border control measures in Japan.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic