Foreign media reported on the 9th that the net profit of Japanese listed companies is expected to decline for the first time in four years due to sluggishness in the manufacturing sector, including the automobile industry, and the strong yen during the summer season.
According to an analysis by SMBC Nikko Securities, among the 671 listed companies that announced their interim financial results for April to September this year, sales increased by 4.5% compared to the same period last year. However, net profit decreased by 8.6%.
As of the previous day, the Japanese companies that disclosed their interim financial results represent about half of the listed companies whose fiscal year runs from April to March of the following year.
Foreign media reported that the manufacturing sector, especially the transportation equipment sector centered on automobiles, saw a net profit decrease of 33.7% compared to the same period last year, which was a larger decline than that of the non-manufacturing sector.
Major Japanese automobile companies, including Toyota, the world's top new car seller, as well as Honda, Nissan, Mazda, and Mitsubishi Motors, mostly experienced a decrease in net profit.
In particular, Nissan's net profit for April to September this year fell by 93.5% compared to the previous year, prompting the company to plan a workforce reduction of 9,000 employees.
Foreign media also forecast that the Japanese automobile industry could be hit by tariffs in the future, as U.S. President-elect Donald Trump has pledged to impose tariffs of over 60% on Chinese imports and tariffs of 10-20% on all goods imported from other countries.
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